Electricity tariffs will decrease by an average of 1.7 per cent, or 0.43 cents per kWh, for the next three months.

This means that families living in a four-room Housing Board flat may pay $1.65 less per month for electricity bills.

The reduction is due to a lower cost of natural gas used for electricity generation, which fell by 2.6 per cent compared to the previous quarter, SP Services said in a statement on Monday.

Households will pay 25.65 cents per kWh from January to March, compared to 26.08 cents per kWh now.

The latest tariffs have been approved by electricity industry regulator Energy Market Authority. SP Services, a subsidiary of Singapore Power, reviews the tariffs quarterly based on guidelines set by the authority.