Household Electricity Tariffs Rise 2.1% in April

Household electricity tariffs in Singapore have increased by 2.1 per cent for the second quarter of 2026, according to announcements from SP Group and the Energy Market Authority (EMA). The revision, effective from April 1 to June 30, 2026, reflects rising global energy costs driven by conflict in the Middle East.

The tariff for households rose by 0.56 cents per kilowatt-hour (kWh), moving from S$0.2671 to S$0.2727, excluding goods and services tax. For families residing in four-room HDB flats, this adjustment translates to an average increase of S$1.80 in their monthly electricity bills before GST.

Broad Market Impact and Non-Household Tariffs

The price hike extends beyond residential consumers. The overall electricity tariff, which includes tariffs for non-households, increased by an average of 2 per cent, or 0.52 cents per kWh, compared to the previous quarter.

SP Group determines the energy cost component of these tariffs every quarter based on guidelines established by the EMA. Specifically, the cost is set using the average natural gas prices recorded during the first two-and-a-half months of the preceding quarter.

The tariffs for the period of April 1 to June 30, 2026, are based on natural gas prices from January 1, 2026, to March 15, 2026. According to SP Group, these figures only incorporate the increase in natural gas prices resulting from the Middle East conflict starting from February 28.

Drivers of Price Volatility

The primary driver for the current increase is the rising cost of imported natural gas, which is tied to oil prices via commercial contracts. Imported natural gas accounts for 95 per cent of Singapore’s electricity generation.

The EMA has cautioned that the ongoing conflict in the Middle East is straining global fuel supply chains. The authority warned that Singapore should be prepared for further and sharper jumps in both electricity and town gas tariffs in the future.

SP Group also indicated that tariffs in subsequent quarters are expected to rise further as the full effect of elevated natural gas prices is incorporated into the calculations.

Energy Security Measures

Despite the volatility in global energy markets caused by the war in Iran, the Singapore government has addressed concerns regarding the nation’s energy stability.

On March 15, 2026, Manpower Minister Tan See Leng assured residents that Singapore’s energy supplies remain secure. Dr. Tan noted that approximately half of the nation’s imported natural gas supply is delivered via pipeline, which provides a level of insulation from the immediate maritime disruptions affecting other global energy routes.

Tariff Structure Components

The electricity tariff is composed of four distinct elements, with the energy cost component being the primary variable adjusted quarterly to reflect fuel and power generation costs.

• Energy costs paid to generation companies, which fluctuate based on the cost of imported natural gas.
• Other components that form the total tariff before GST.