Electricity tariffs are going down in the third quarter of the year by an average of 0.67 cent per kilowatt hour (kwh), SP Group said in a statement yesterday.
Tariffs for the period from July 1 to Sept 30 this year will decrease by an average of 3.2 per cent from the previous quarter, dropping from 21.39 cents per kwh to 20.72 cents per kwh.
The reduction is due to the lower costs of natural gas for electricity generation, which fell by 7.5 per cent from the previous quarter.
This means the average monthly electricity bill for families in five-room Housing Board flats will be $2.93 cheaper.
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Those in four-room flats will get an average bill reduction of $2.55, while those in three-room flats will see an average decrease of $1.90.
SP Group reviews the electricity tariffs quarterly based on guidelines set by the electricity industry regulator – the Energy Market Authority.
The electricity tariff is made up of four components: Energy costs paid to generation companies; network costs paid to SP PowerAssets; the market support services fee paid to SP Services; and the market administration and power system operation fee, paid to the Energy Market Company and Power System Operator.