S’pore households may pay more for electricity if fuel prices stay high: EMA
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Most consumers are not expected to immediately experience a change in their electricity bills.
ST PHOTO: KELVIN CHNG
- EMA states most Singapore households won't immediately see increased electricity bills due to fixed contracts or the regulated tariff.
- However, consumers may face higher electricity prices when renewing contracts or through increased regulated tariffs if fuel costs stay elevated.
- Singapore imports nearly all of its energy. The EMA has safeguards like a standby LNG facility to ensure supply.
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SINGAPORE - Most households will not immediately experience a change in their electricity bills because of the conflict in the Middle East, but they could see an increase in prices if fuel costs stay elevated, said the Energy Market Authority (EMA).
It noted: “The situation in the Middle East is likely to increase global energy prices and lead to higher domestic electricity prices.”
Most consumers will largely be “cushioned from immediate price volatility as they are purchasing electricity either through a fixed-price retail contract or the regulated tariff from retailers and SP Group respectively”, it added.
The Straits Times understands that the minority of consumers who have chosen to buy electricity at wholesale prices will be more quickly affected by a change in rates.
Even so, a check of the Uniform Singapore Energy Price (USEP), which tracks wholesale prices half-hourly, shows there has not been a surge in the measure’s daily average since the US and Israel launched an attack on Iran on Feb 28.
However, elevated fuel costs could trickle down to consumers in the longer run.
For instance, those who use one of Singapore’s 10 open electricity market retailers may see the higher costs reflected when they renew their contracts with the providers.
Households on the regulated tariff may also receive higher bills when the rate is adjusted in subsequent quarters. The regulated electricity tariff, which is adjusted every quarter, reflects the actual cost of electricity production and is heavily influenced by fuel costs.
The current tariff is 26.71 cents per kilowatt-hour (kWh), lower than the 27.55 cents kWh rate offered in the previous quarter.
“EMA will continue to closely monitor global developments and work with industry partners to safeguard Singapore’s energy security,” the regulator said.
A retiree who wanted to be known only as Mrs Low told ST her five-member household currently pays around $450 for utilities, and she fears that prices will go up.
“I am worried the electricity bills will rise if the situation (in the Middle East) deteriorates and is long drawn,” she said. “Currently, we are cutting down on air-conditioner usage and turning the lights and fans off when not in use.”
Mr Matthijs Guichelaar, chief executive of Flo Energy, said the electricity retailer has adjusted the prices of its longer-term contracts “in response to rising global energy and gas prices, which influence wholesale electricity markets”. He said new customers will pay the adjusted rates but most current customers “won’t be directly impacted as they are on fixed-price plans”.
YTL PowerSeraya, which operates electricity retailer Geneco, said it was keeping a close tab on global developments given the tensions in the Middle East.
“We will be also working closely with the Energy Market Authority and our industry partners to ensure that the interests of both our commercial and residential customers, and our business remain protected,” it said.
Singapore imports almost all the energy to meet its needs. About 95 per cent of the country’s electricity is generated from imported natural gas.
The Republic’s gas imports in 2025 comprised 43 per cent piped natural gas from Malaysia and Indonesia, and 57 per cent liquefied natural gas (LNG) from other countries including those in the Middle East.
Rystad Energy senior analyst Pang Lu Ming noted that Singapore imported about 2.93 million tonnes of LNG from Qatar in 2025.
He said that while around 80 per cent of the Republic’s LNG requirements are currently covered under long-term contracts, most of these are linked to oil prices, which vary based on demand and supply fundamentals.
Mr Pang said: “Any country with a reliance on fossil fuel energy imports will feel the impact of price increases from supply disruptions in oil and gas elsewhere in the world.
“Given that Singapore is a net importer of fossil fuels, it will be subject to the volatility in the market.”
EMA said it has put in place measures to ensure a supply of fuel and electricity, and mitigate price volatility. This includes the 2021 establishment of a standby LNG facility, which power generation companies (gencos) can tap to generate electricity if natural gas supplies are disrupted, it said.
The regulator also introduced a temporary price cap mechanism in 2023 that can act as a “circuit breaker” when activated during periods of high and sustained volatility in the Singapore wholesale electricity market. It also requires gencos to maintain sufficient fuel for power generation, and a diesel stockpile as backup fuel.
Global energy prices, which surged after Iran was attacked, have continued to climb as the conflict escalates.
Prices of petrol and diesel have risen as the war shut a crucial waterway for oil supplies.
Additional reporting by Rosalind Ang
