Households can expect lower electricity bills for the next three months.
Electricity tariffs are set to decrease by an average of 15 per cent in the third quarter of the year, SP Group said yesterday.
For the period from July 1 to Sept 30, electricity tariffs will fall by 3.42 cents per kilowatt hour (kwh) compared with the previous quarter, as a result of lower energy costs.
It added that energy costs are adjusted quarterly to reflect changes in the cost of fuel and power generation.
Fuel cost, which is the cost of imported natural gas, is tied to oil prices by commercial contracts.
The cost of power generation, on the other hand, covers the costs of operating power stations such as manpower and maintenance costs.
Excluding the goods and services tax (GST), this translates to a decrease from 23.02 cents per kwh to 19.60 cents per kwh for households powered by SP Group.
This rate is the lowest since the period from October to December 2016, when it was 19.13 cents per kwh, before GST.
The average monthly electricity bill for families living in four-room Housing Board flats will decrease by $12, excluding GST.
Electricity tariffs had also declined in the last quarter, by an average of 5.1 per cent or 1.22 cents per kwh.
The SP Group reviews the electricity tariffs quarterly based on guidelines set by the Energy Market Authority, which is the electricity industry regulator.