Households in Singapore may not see an immediate change in their electricity bills even with the ongoing conflict in the Middle East. However, electricity prices could go up later if fuel costs remain high, according to the Energy Market Authority (EMA).
The regulator said that the situation in the Middle East could affect global energy markets. EMA explained, “The situation in the Middle East is likely to increase global energy prices and lead to higher domestic electricity prices.”
Most households are protected from sudden price changes
For now, most consumers in Singapore are protected from sudden spikes in electricity prices. This is because many households purchase electricity through fixed price contracts offered by electricity retailers or through the regulated tariff provided by retailers and SP Group.
EMA said that consumers are largely “cushioned from immediate price volatility as they are purchasing electricity either through a fixed-price retail contract or the regulated tariff from retailers and SP Group, respectively.”
Only a smaller group of consumers who buy electricity at wholesale market prices may feel the effects faster. These customers pay rates based on the Uniform Singapore Energy Price, which tracks wholesale electricity prices every 30 minutes.
Even so, the daily average price of the Uniform Singapore Energy Price has not surged since the United States and Israel launched an attack on Iran on February 28.
Higher fuel costs may affect electricity later
Electricity prices in Singapore are strongly linked to the cost of producing power, and fuel costs play a major role. The regulated electricity tariff is reviewed every quarter and reflects the actual cost of electricity production.
The current regulated tariff is 26.71 cents per kilowatt hour. This is lower than the previous quarter’s rate of 27.55 cents per kilowatt hour.
Consumers who purchase electricity from one of the country’s open electricity market retailers could see higher costs when they renew their contracts if global fuel prices remain elevated.
Some households are already worried about higher bills
A retiree known only as Mrs. Low shared that her five-member household currently spends about $450 each month on utilities. She said she is concerned that the bills could increase if the conflict continues.
“I am worried the electricity bills will rise if the situation in the Middle East deteriorates and is long drawn,” she said.
She added, “Currently, we are cutting down on air-conditioner usage and turning the lights and fans off when not in use.”
Retailers monitoring global energy prices
Electricity retailers are also closely watching the global situation. Matthijs Guichelaar, chief executive of Flo Energy, said the company has already adjusted prices for some long-term electricity contracts.
He explained that the move was made “in response to rising global energy and gas prices, which influence wholesale electricity markets”.
Mr Guichelaar added that new customers will pay the adjusted rates, while most existing customers “won’t be directly impacted as they are on fixed-price plans”.
Another electricity retailer, Geneco, which is operated by YTL PowerSeraya, said it is monitoring the global developments carefully.
The company said, “We will be also working closely with the Energy Market Authority and our industry partners to ensure that the interests of both our commercial and residential customers, and our business remain protected.”
Singapore relies heavily on imported energy
Singapore imports almost all of the energy it needs. About 95 per cent of the country’s electricity is generated using imported natural gas.
In 2025, around 43 per cent of Singapore’s gas imports came through pipelines from Malaysia and Indonesia. The remaining 57 per cent came in the form of liquefied natural gas from other countries, including suppliers in the Middle East.
Senior analyst Pang Lu Ming from Rystad Energy said Singapore imported about 2.93 million tonnes of liquefied natural gas from Qatar in 2025.
He noted that around 80 per cent of Singapore’s liquefied natural gas supply is secured through long-term contracts. However, many of these contracts are still linked to oil prices.
Mr Pang said, “Any country with a reliance on fossil fuel energy imports will feel the impact of price increases from supply disruptions in oil and gas elsewhere in the world.”
He added, “Given that Singapore is a net importer of fossil fuels, it will be subject to the volatility in the market.”
Measures to ensure energy supply
EMA also shared that several measures are already in place to ensure Singapore’s electricity supply remains stable.
One of these measures is a standby liquefied natural gas facility set up in 2021. Power generation companies can use this facility to generate electricity if natural gas supplies are disrupted.
The regulator also introduced a temporary price cap mechanism in 2023. EMA said this can act as a “circuit breaker” when activated during periods of high and sustained volatility in the Singapore wholesale electricity market.
Power generation companies are also required to maintain enough fuel for electricity generation and keep a diesel stockpile as a backup fuel supply.
Global energy prices have continued to climb after Iran was attacked. Prices of petrol and diesel have also increased after the conflict disrupted a key waterway used for oil supply.
