Dear readers, the Singapore household electricity tariffs (by SP Group) will rise by another 4.1% to 29.89 cents (before GST) per kWh for Jan to Mar 2024. This marks the 4th consecutive rise in electricity tariffs from Apr 23.
As recap, Singapore’s household electricity tariff was 27.43 cents (before GST) per kWH for Apr to Jun 2023. From Q2 2023 to Q1 2024, Singapore household electricity tariffs would have increased by 8.99%!
Amidst the rising costs of electricity tariff, it may be value-for-money to subscribe to commercial electricity retailers going forward as a number of these players are offering electricity packages lower than the rates offered by SP Group’s.
I have been a subscriber of commercial electricity retail packages ever since the diversification of Singapore’s electricity market some years back. I enjoyed savings from buying electricity from the retailer in the initial years but thereafter, SP’s electricity rates have been decreasing and I found myself paying more at the contracted rates from the retailer. Only recently, has SP rates started to trend up, so much so that it will make more sense to recontract at and lock in lower retail rates where possible. Also, I am of the view that SP’s electricity tariffs may continue to increase arising from factors like inflation and increase in carbon tax.
As at 30 Dec 2023, one of the electricity retailers, Keppel Electric is offering 27.33 cents per kWH (before GST) for household electricity for its 1-year and 2-year contract each. The above rates are about 8.6% cheaper than the SP rates! And this equates to 8.6% savings for the electricity bills of a household.
The above savings are all the more desirable in this current environment where cost of many things is going up.