Singapore households should prepare for higher electricity bills from July 2026, with experts warning that prices could rise significantly despite a recently announced peace agreement between the United States and Iran.
The Energy Market Authority (EMA) said the upcoming regulated electricity tariff is expected to increase due to elevated global fuel prices over the past few months.
Currently, the regulated tariff stands at 29.72 cents per kilowatt-hour (kWh), including GST, and around 63 per cent of Singapore households remain on this pricing scheme.
Analysts have projected that electricity prices could rise anywhere between 5 per cent and as much as 30 per cent, depending on how global energy markets stabilise in the coming months.
Why Are Electricity Prices Still Rising?
Many may wonder why electricity prices are increasing even after the US and Iran reached a peace agreement.
The answer lies in how Singapore calculates its electricity tariffs.
Electricity prices for each quarter are based on the average fuel costs from the previous two-and-a-half months. This means tariffs from July to September are largely determined by fuel prices between April and mid-June, when energy markets were heavily affected by the conflict in the Middle East.
Singapore is particularly vulnerable because approximately 95 per cent of its electricity is generated using imported natural gas. Any disruption to global fuel supply chains eventually impacts consumers locally.
Four-Room HDB Households Could Pay Around S$30 More Monthly
According to estimates from energy analysts, a four-room HDB household could see its monthly electricity bill increase by about S$30 if tariffs rise by 20 to 25 per cent.
The average monthly electricity bill for a four-room HDB flat is currently about S$88.
Industry experts also noted that even though shipping routes may reopen soon, it could take several months before global energy supplies fully normalise.
More Singaporeans Switching To Fixed-Price Plans
As uncertainty grows, more households are opting for fixed-price electricity contracts to avoid future price spikes.
EMA data showed that the proportion of households on fixed-price plans increased from 36.6 per cent to 37.1 per cent between February and June 2026.
However, consumers should note that fixed-price contracts work both ways. While they offer protection against sudden increases, households may not immediately benefit if electricity prices eventually fall.
Consumers who are considering switching plans can compare available electricity retailers and packages through the Open Electricity Market comparison platform.
Some Relief May Only Arrive In 2027
Analysts believe electricity tariffs could start easing towards the end of 2026 if energy supplies from the Middle East recover steadily.
More meaningful relief may only be seen in early 2027 once shipping traffic through the Strait of Hormuz fully returns to normal.
In the meantime, eligible Singapore households will receive up to S$190 in U-Save rebates in July to help offset rising utility costs.
EMA has also encouraged consumers to understand their available electricity purchase options and choose a plan that best suits their household needs and spending preferences.
With global energy markets still facing uncertainty, Singaporeans may need to prepare for higher utility bills over the next few months before prices eventually stabilise.