Spot electricity prices in S’pore hit highest level in 2026 ahead of quarterly tariff revision

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SINGAPORE - Wholesale electricity prices in Singapore have been climbing since the Middle East conflict broke out, and higher fuel prices are placing pressure on the electricity tariff paid by most households to be raised in the next quarter starting on April 1.

Checks by The Straits Times showed that the weekly Uniform Singapore Energy Price (USEP), a measure of the wholesale cost of electricity taken half-hourly, hit the highest level seen so far in 2026 during the week of March 15 to 21, at $157.78 per megawatt hour (MWh).

This was more than 7 per cent higher than in the previous week, as both the demand and supply of electricity decreased.

Higher fuel costs will also influence the electricity tariff regulated by the Energy Market Authority.

The tariff, which is revised quarterly, was the way through which 63.4 per cent of households paid for their electricity consumption, according to the latest available data in October 2025.

At that time, over 36 per cent of households had signed up for plans with electricity retailers, while less than 0.1 per cent of them bought electricity at wholesale prices.

Analysts widely expect the electricity tariff to be raised next week as the war has driven up energy prices and disrupted the supply of liquefied natural gas (LNG) from Qatar, a major supplier of the commodity to Singapore.

But electricity retailers in Singapore have already begun making changes to their offerings, such as hiking the prices of new contracts and removing discounted plans, ST has learnt.

Dr David Broadstock, partner at energy consultancy The Lantau Group, said retailers have reacted to rising energy costs as they can change their offerings more rapidly than the regulated tariff.

He noted that the latest USEP data shows that the “pressure for an increase in the electricity tariff is already there”.

Taken together with warnings from the Government about a higher electricity tariff, Dr Broadstock said, “there is a strong expectation on all fronts that the prices will be going up”.

Rystad Energy senior consultant David Chew is expecting a “somewhat muted” increase in the tariff. He said: “While there has been a general consensus that the price will increase because of the conflict, the fluctuations reflected in the USEP seem to be within the range of 2026 thus far.

“This is likely due to Singapore meeting its gas supply requirements and its limited exposure to high spot prices.”

Singapore relies on imported natural gas to generate 95 per cent of its electricity.

Its gas imports in 2025 comprised 43 per cent piped natural gas from Malaysia and Indonesia, and 57 per cent LNG from other countries.

The electricity is then disseminated by power plants to households and businesses through the national power grid.

Dr Tan See Leng, Minister-in-charge of Energy and Science and Technology, has said that Singapore’s short-term vesting contracts “will be affected” by higher spot prices.

These mandate power generation companies to sell a specified amount of electricity at a pre-determined price to discourage them from withholding supply.

But he said longer-term vesting contracts continue to run, and the Republic continues to import piped natural gas from Malaysia and Indonesia.

Wholesale prices of electricity have continued to rise, with USEP forecasts exceeding $170 per MWh on most days since March 22.

However, the measure has been stable compared with 2022, where the USEP averaged around $300 per MWh between January and October, partly reflecting higher fuel costs during the Ukraine crisis.

Electricity plans still drawing interest

The increase in wholesale prices has hit electricity retailers. Retailers have raised rates on their plans that lock in the cost of electricity for households by more than 10 per cent in some instances.

Some shorter-term plans and those offering discounts from the electricity tariff have also been discontinued.

For instance, Tuas Power no longer has plans offering fixed electricity prices for six months, or 10 per cent off the regulated tariff. A spokesperson said: “The recent Middle East situation has led to significantly higher fuel prices amid ongoing global market volatility.

“Shorter-term electricity plans are more challenging to price and sustain, as they are more sensitive to near-term fuel price fluctuations.”

The spokesperson added that rates on its longer-term plans “may increase upon renewal if fuel prices remain elevated”.

But some households are still opting for electricity plans, as they expect the regulated tariff to rise further in the months ahead.

Tuas Power has stepped up its roadshows across Singapore in recent weeks. Promoters from Senoko Energy were also spotted by ST last weekend, drawing passers-by with savings to electricity bills.

New home owner Kevin Koh, 41, is still keen to switch away from the tariff as he believes a plan will help him to save on bills.

“The main reason is to save money. If there is a fixed discount (off the electricity tariff) or a fixed rate for 24 or 36 months, I will consider it,” said Mr Koh, who is in the midst of renovating his four-room HDB flat.

“I am always keeping a lookout now, as sometimes retailers have a short period of promotion with better rates,” he added.

Retiree Alex Ortega renewed his contract with electricity retailer Geneco earlier in March in anticipation of higher energy prices.

Under the contract, the 57-year-old will pay 24.88 cents per kilowatt hour (kWh) for electricity for the next two years.

The rate is around four cents lower than the current electricity tariff, factoring in the goods and services tax.

Mr Ortega, whose two-member household uses around 500kWh of electricity a month, said he expects to save around $20 through the plan. He said: “I expect the electricity prices to go up even further, so the 24-month contract at that low price will allow me small luxuries.”

Geneco, which is Singapore’s largest electricity retailer, told ST that it has seen a significant increase in customers signing up for its plans in recent weeks.

“Amid ongoing volatility in the global energy market, many consumers are seeking certainty over their electricity costs with fixed priced electricity plans,” a spokesperson said.

What lies ahead

The electricity tariff is scheduled to be revised for the next quarter starting on April 1 to June 30.

It is currently set at 26.71 cents per kWh or 29.11 cents per kWh with GST.

More than 75 per cent of the tariff is made up of energy costs, which are revised quarterly.

The tariff’s other components, including network costs paid to power grid operator SP Group, are revised annually.

Rystad’s Mr Chew believes that the war in the Middle East, which has pushed up the prices of oil, will trickle into the cost of Singapore’s LNG purchases, as the country’s contracts are typically linked to oil benchmarks.

However, he said, “there tends to be some wiggle room with LNG contracts, with downward or upward quantity adjustments to the contracted volumes, based on the prevailing spot price”.

Supply will also be disrupted by Iran’s latest attacks on Qatar’s Ras Laffan Industrial City, which typically produces around a fifth of the world’s supply of LNG.

The barrage of missiles on March 18 and 19, following a drone attack earlier in the month, has knocked out 17 per cent of Qatar’s LNG export capacity.

QatarEnergy, the state-owned administrator of Ras Laffan, has since declared force majeure on some of its long-term LNG supply contracts, including for customers in Italy, Belgium, South Korea and China.

Force majeure notices are issued when unforeseeable circumstances prevent the supplier from fulfilling its contract.

Singapore does not disclose the amount of LNG it imports from Qatar. But Rystad Energy estimates that Qatar accounted for around 42.5 per cent of the Republic’s LNG imports in 2025.

Dr Tan has said that Singapore has established a fuel stockpile comprising a mixture of gas and diesel, which power generation companies can tap if there is a severe disruption to gas supplies.

He added that the Government has not yet needed to dip into these stockpiles, which are enough to last for months.

Electricity-generating turbines here are also able to run on diesel, as required by regulation.

Mr Chew said: “Singapore tends to be long in distillates, meaning there is sufficient diesel supply that can be used in the event of a prolonged elevated gas price.”