ELECTRICITY bills for Singapore households will go up by about 21 per cent from Wednesday - the highest one-time increase in seven to eight years - due to higher oil prices.

With this latest tariff revision, households in three-room flats will see their utilities bills go up by $14. Families in five-room flats will pay about $23 more a month, on average, with the price of electricity going up from about 25 cents per kilowatt-hour to about 30 cents.

Overall, utilities bills this year for households in three-room flats or smaller will rise by as much as $223, said the Energy Market Authority (EMA), which regulates the electricity and gas industry here on Monday.

But the government rebates of up to $330 will more than cover the increases for these homes.

Those living in larger homes, like Executive Apartments, will on average pay up to $433 a year.

The government rebates for these households, which range from $130 for an executive apartment to $295 for a four-room flat, will cover half the increase for these homes.

Chief executive of EMA Mr Khoo Chin Hean, said at a press briefing on Monday that the higher tariffs have been due to the increase in oil prices.

EMA said the projected fuel oil price for the next three months is set to jump to $155.14 a barrel, up 38 per cent from $112.35 for the current quarter.

Fuel costs make up about 60 per cent of electricity tariffs, which are reviewed quarterly and adjusted according to changes in the cost of electricity.

The other 40 per cent includes the cost of generating electricity, maintenance and equipment.

Since 2004, electricity tariffs here have been pegged to projected oil prices for the next three months instead of current oil prices.

Mr Khoo said the old practice made the cost of electricity very volatile.

For households, the new tariff will be about 30 cents per kiloWatt-Hour, up from about 25 cents.

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