SINGAPORE – Households and businesses can expect lower electricity bills for the next three months.

Electricity tariffs for October to December are set to fall by an average of 3.3 per cent, or 0.79 cent per kwh, compared with the previous quarter, SP Group said on Monday (Sept 30).

The decline is due to the lower cost of natural gas for electricity generation compared with the previous quarter, SP Group said.

For households, the electricity tariff before the Goods and Services Tax (GST) will decrease from 24.22 cents to 23.43 cents per kwh during the three-month period.

The average monthly electricity bill for families living in four-room HDB flats still tied to the SP Group will decrease by $2.84.

The electricity tariffs for July to September this year – 24.22 cents per kwh – was the highest in nearly five years, since the period from October to December 2014, when it was 25.28 cents before GST.

SP Group reviews tariffs quarterly, based on guidelines set by the Energy Market Authority, which approved the new pricing.