SINGAPORE: The household electricity and gas tariffs will decrease for the January to March period due to lower energy costs, marking the second straight quarterly decline.

Compared with the previous quarter, the electricity tariff will decrease by 3.4 per cent or 0.98 cent per kWh before Goods and Services Tax (GST), national grid operator SP Group said on Monday (Dec 30).

This translates to a decrease in the average monthly electricity bill for families living in Housing and Development Board (HDB) four-room flats by S$3.58 before GST.

The gas tariff before GST will also decrease by 0.25 cent per kWh, from 22.97 cents per kWh to 22.72 cents per kWh for the upcoming quarter due to lower fuel cost, said City Energy. 

SP Group, which owns and operates Singapore's electricity network, reviews the electricity tariffs every quarter based on guidelines set by the industry regulator, the Energy Market Authority (EMA).

The electricity tariff consists of four components, including energy costs paid to power generation companies, and network costs paid to SG Group to recover the cost of transporting electricity through the power grid.

There is also a market support services fee paid to SP Group that recovers the costs of billing and meter reading, as well as a fee paid to the energy market company that recovers the costs of operating the electricity wholesale market and power system.

City Energy also reviews the gas tariffs every quarter based on guidelines set by EMA.