Even if the conflict were to ease, disruptions to oil and gas production in the region will take time to recover. Consumers should be prepared for higher and more volatile energy costs in the coming months. Those on the regulated tariff are likely to see further and potentially sharper increases in subsequent quarters.

Eligible Singaporean HDB households can use U-Save rebates to offset electricity expenses, with the first tranche of disbursement in April 2026 providing 1.5 times the regular amount (or up to $570) as announced in Budget 2026. A second tranche of U-Save rebates will be disbursed in July 2026, which will help to defray the much sharper increase in utility bills expected from July to September 2026. Please visit this website for more details on the U-Save rebates.

Additionally, eligible households can claim up to $400 in Climate Vouchers under the enhanced Climate Friendly Household Programme to purchase energy-efficient appliances from over 250 participating vendors.

Businesses can access the Resource Efficiency Grant for Emissions and Energy Efficiency Grant to invest in energy efficiency solutions. The Government is prepared to provide additional support if the situation deteriorates over a prolonged period.

For the full suite of measures supporting those who are most affected by price increases, please refer to the Ministerial Statement by Senior Minister of State for Finance Jeffrey Siow. 

EMA will work with industry partners to help ensure consumers continue to have access to electricity contracts. The regulated tariff also remains an option for eligible consumers to consider.

Electricity prices in Singapore are largely driven by natural gas prices. The recent Middle East situation has led to higher fuel prices and increased market volatility. The costs of natural gas are generally indexed to oil prices, and hence will increase as oil prices increase. In addition, the supply LNG from Qatar to Singapore has been disrupted, amounting to about 10% of Singapore’s natural gas supplies. Gencos will have to source for replacement gas which are more expensive. The higher costs of natural gas will lead to higher costs of power generation, which will translate into higher electricity retail prices.

Retailers are required to adhere to the Code of Conduct for Retail Electricity Licensees, which includes providing clear and accurate information on pricing and contract terms. 

EMA takes non-compliance seriously and will take appropriate regulatory action where necessary to safeguard consumer interests and maintain confidence in the market.

Wholesale electricity prices are determined in the Singapore Wholesale Electricity Market (SWEM), where power generation companies submit offers every half-hour indicating how much electricity they can supply and at what price. As fuel costs comprise the majority of power generation costs, power generation companies’ offers are heavily influenced by fuel costs and volatility of fuel costs.

For instance, following the supply chain tightness seen from late 2021, and the Russia-Ukraine conflict that began in Feb 2022, monthly USEP remained elevated at an average of approximately $0.32/kWh from Oct 2021 through May 2023 with spikes to more than $0.45/kWh in some months, and only returned below $0.20/kWh after July 2023 onwards. As shown in the chart below, the average USEP spiked several times in this period, reflecting high and volatile prices. 

The WEP may become higher and more volatile with rising fuel costs, as such costs make up the majority of power generation costs. This means that consumers on WEP may end up paying more compared to those on the regulated tariff or fixed-price retail contracts. Find out more about the WEP here.

For greater price certainty, you may consider buying electricity under a fixed price plan from a retailer. Learn more about switching to alternative options here.