Excluding goods and services tax, the household electricity tariff will increase from 19 cents (S$0.25) to 21 cents per kilowatt-hour (kWh) during the same period.
The decision marks the fifth consecutive rise in the household electricity tariff since January last year. The SP Group reviews the electricity tariff quarterly.
Under these measures, power generation companies (gencos) can draw upon standby fuel facilities established last October. The authority can also direct gencos to generate electricity using gas from the standby facilities ahead of potential disruptions to the wholesale electricity market.
Gencos need to contract sufficient fuel to meet the demand, in addition to retaining fuel reserves as required under their licenses.
Meanwhile, as part of the 2022 Budget, eligible households will receive vouchers to dampen the impact of higher electricity bills.
“Around 95 percent of Singapore’s electricity is generated from imported natural gas. The surge in global energy prices will lead to substantially higher costs of electricity generation,” said the EMA.
The 1 percent of consumers who directly purchase electricity from the wholesale market will be the first to be affected by rising energy costs, according to the authority.
Oil Price Surge a Drag on Asian EconomiesMost Asian economies, including Singapore, rely heavily on energy imports.
The war-induced oil and gas price surge poses growth and inflation risks, and could worsen these countries’ current account balances.
Thailand’s headline inflation forecast, however, was adjusted higher from 1.7 percent to 4.9 percent for 2022.
The Philippines’ central bank noted that global oil price hikes would cause the country’s current account and balance of payment positions to be under pressure.
While Thailand is projected to be the biggest loser among Asia–Pacific emerging countries to the oil price surge, net exporters such as Indonesia and Malaysia would benefit from higher energy prices.