Singapore raises electricity tariffs by 17% due to Middle East crisis

SINGAPORE: Singapore state utility SP Group said on Tuesday that it will raise electricity tariffs by 17% in the third quarter of 2026 due to soaring prices of imported natural gas, which accounts for 95% of the city-state's power production. Electricity tariffs before taxes for households will increase by 17.0% compared with the previous quarter, amounting to S$0.0464 ($0.036) per kilowatt-hour, due to higher energy costs. The tariffs are reviewed quarterly based on guidelines set by the nation's Energy Markets Authority. "Natural gas prices had increased sharply from the end of February and remained elevated from April to June due to the conflict in the Middle East," the authority said. "An increase in the cost of natural gas will lead to an increase in the costs of producing electricity and town gas in Singapore," it added. It said the situation in the Middle East remains uncertain but if it improves, fuel prices could fall and lead to lower electricity and town gas tariffs in the fourth quarter. ($1 = 1.2940 Singapore dollars)