Singapore Electricity Tariffs Cut for Third Quarter 2025
In a welcome development for households across Singapore, electricity tariffs will see a 2.3% drop in the upcoming quarter, from 1 July to 30 September 2025. According to SP Group’s latest announcement, this translates to a reduction of 0.65 cent per kWh before GST, bringing relief to families grappling with the cost of living.
For residents of typical four-room HDB flats, this revision means average monthly electricity bills will decrease by approximately S$2.36 before GST. The adjustment follows a period of declining energy costs, particularly in natural gas prices, which have eased due to stabilising global market conditions.
This tariff revision marks a notable shift from the steady increases in previous quarters, offering a much-needed reprieve to Singaporeans. It reflects the dynamic nature of global fuel markets, where prices remain vulnerable to geopolitical tensions such as ongoing conflicts in the Middle East, which have previously kept energy costs elevated.
How Singapore’s Electricity Tariffs Are Calculated
SP Group reviews electricity tariffs every three months, following guidelines set by the Energy Market Authority (EMA), Singapore’s electricity industry regulator. The energy cost component — the largest contributor to tariffs — is determined by the average natural gas prices over the first two and a half months of the preceding quarter.
Electricity tariffs in Singapore comprise four key components: energy costs paid to power generation companies; network costs to cover the distribution of electricity through the national grid; a Market Support Services Fee for billing, meter reading, and retail market systems; and the Market Administration and Power System Operation Fee, which funds the management of Singapore’s electricity wholesale market.
The latest quarterly tariff update shows SP Group’s commitment to transparency and responsiveness to shifts in the global energy landscape. These periodic adjustments ensure that consumers pay a fair price that accurately reflects current fuel costs and system maintenance expenses.
Savings for HDB Households and Businesses
From July, both residential and non-residential consumers will benefit from an average tariff reduction of 2.4%. The lower rates aim to ease utility bills for households and operational costs for businesses, fostering a more resilient economy amid inflationary pressures.
Families are encouraged to continue practising energy conservation habits to maximise these savings on their electricity bills. By being mindful of consumption, households can further reduce costs while supporting Singapore’s long-term goals for sustainable energy use.
For more details on the specific components of the electricity tariff and average household bills from July 2025, Singaporeans can refer to the full breakdown provided by SP Group on its official website.