Energy prices have been in the news lately. Over the past few months, the conflict in the Middle East has disrupted global energy supply chains, driving up the cost of natural gas that Singapore relies on to generate electricity.

In Singapore, the electricity tariff is set based on the average daily cost of natural gas in the first 2.5 months in the preceding quarter. For example, the average of daily natural gas prices from 1 January to 15 March 2026 is used to set the tariff for April to June 2026, and the average of daily natural gas prices from 1 April to 15 June 2026 will be used to set the tariff for July to September 2026.

This means changes in global gas prices can take some time to show up in your bill.  We have already seen this play out: the regulated electricity tariff for the April to June 2026 quarter rose only slightly, as it only included the rise in gas prices from 28 February (when the Middle East conflict started) till 15 March 2026.

However, with gas prices remaining significantly elevated between April and June 2026, the electricity tariff is expected to rise more sharply in the quarter starting 1 July 2026.

So, what exactly influences natural gas prices, and what other options do households have beyond buying electricity at the regulated tariff?

Singapore generates electricity locally, but the fuel needed to generate the electricity is almost entirely imported. Today, about 95% of our electricity is generated using imported natural gas. 

When global energy markets are disrupted – whether by geopolitical conflict restricting gas flows, harsh weather driving up gas demand elsewhere, or supply disruptions in other parts of the world – the impact does not stay overseas. Eventually, the resultant higher price of gas will be reflected in higher electricity prices here in Singapore.

In this sense, electricity is not so different from the vegetables at your wet market or the cooking oil on supermarket shelves. Both are everyday essentials, and both are subject to price changes when overseas supply conditions change. Electricity works much the same way – it is generated locally but depends heavily on the fuels we import from abroad.

Understanding how the price is set naturally raises a question: is there anything you can do about it?

The answer is yes. 

Households have flexibility in how they buy electricity. 

• The Regulated Tariff – Familiar, but Not Your Only Option

This is the default option that the majority of households have chosen. The tariff rate is reviewed quarterly and reflects changes in the cost of generating electricity. As explained earlier, households may not immediately feel the full impact when global fuel prices increase.

This option is for households who prefer not to choose between different electricity plans and are comfortable with the rate being adjusted every quarter.

•  Fixed Price Plan – Locking in Your Electricity Rate

Electricity retailers offer a range of price plans, with the fixed price plan being the most common. Under this option, the electricity rate you pay remains fixed throughout the contract period, typically ,6, 12 or 24 months. This means that even if the regulated tariff rises during that time – for example, due to a supply disruption or a spike in global natural gas prices – the rate you pay does not change until your contract ends.

However, this certainty comes with a trade-off. If the regulated tariff falls below the rate stated in your contract during the contract period, you will continue paying the contracted rate throughout the contract period, and will not benefit from the lower tariff.

• Time-of-Use Plans - For Households Willing to Shift Their Habits

This option prices electricity differently depending on when you use it. Off-peak periods - typically nighttime and weekends - have lower rates, while daytime peak hours have higher rates. Households that can defer energy-intensive activities like laundry, dishwashing, or electric vehicle charging to off-peak hours may find the savings add up over time.

This requires adjustment to daily habits, but for households with flexible routines, this may be a good option.

Before comparing the different purchase options, it may be helpful to first consider your priorities.

If you are comfortable with quarterly revisions of the rate you pay for electricity, the regulated tariff may be sufficient for your needs. If greater price certainty for your electricity expenses is important to you, a fixed price plan from your preferred retailer may be worth considering. For households with more flexible daily routines and willingness to adjust when they use electricity, a time-of-use plan may be another option to consider.

There is no one-size-fits-all choice. The most suitable plan depends on your household’s preferences, lifestyle, and comfort with price variability.

Once you have a sense of where you stand, the practical steps are straightforward:

• Know your usage. Go through your past electricity bills to get a sense of your average monthly consumption. If you have a smart electricity meter, you could also track your usage via the SP or retailer app. Households with higher usage tend to feel price changes more keenly, which often makes predictability more valuable.

• Compare your options. Visit the Price Comparison website to compare the standard price plans offered by electricity retailers. You can also contact your preferred retailer directly to find out about the other types of price plans that they may offer.

• Read the fine print. All electricity retailers are required to have a fact sheet for their price plans. Before signing up, ask for the fact sheet and Consumer Advisory that outlines the important things that you should be aware of. Do look out for contractual terms such as contract duration, payment terms, early termination charges and auto-renewal clauses.

• Factor in your circumstances. If you are likely to move home or expect a significant change in your living situation within the next year or two, a long fixed-term contract may not be suitable.

Understanding the various electricity purchase options puts you in a better position to make a choice that meets your household's needs and priorities.

There is no right or wrong answer as to whether you should stay on the regulated tariff or decide to explore what retailers have to offer. What matters is that the choice is an informed one, and that it suits your household needs and circumstances.

For more information on electricity purchase options and to compare retail plans, visit EMA's consumer information page.