Budgeting & Saving

Average Cost of Monthly Singapore Power (SP) Bills

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Singapore Power (SP) provides most of the basic utilities for consumers, including electricity, gas and water. Naturally, everyone living in Singapore has to pay this bill in order to get his basic life necessities. If you have not paid this bill in your life before, i.e. you are starting a new job and living independently on your own for the first time, you may wonder how much this might be so that you can budget in advance. For you, we've prepared the below study on the average cost of SP Bills in Singapore.

Average Cost of SP Bills

Singapore Power publishes the national average SP Bills on a monthly basis on its website. Combining this data with the household data from Singstat, we were able to calculate that the average monthly SP bill in Singapore was roughly S$148 in January of 2017.

Average Monthly Singapore Power BillsJan-17Jan-16% Change Y/Y
HDB 1- And 2-room FlatsS$71S$74-4%
HDB 3-room FlatsS$105S$109-3%
HDB 4-room FlatsS$134S$138-3%
HDB 5-room And Executive FlatsS$147S$153-4%
Condominiums & Other ApartmentsS$163S$177-8%
Landed PropertiesS$444S$460-4%
Average148156-5%

Average Cost of SP Bills Has Been Declining

As you can see from our first chart above, average SP bills have been declining in size over a 12-month period. For instance, the average SP bill for the whole country declined from S$156 in January 2016 to S$148 in Jan 2017, according to our calculation. This represents a -5% decline over the same period in 2016. A number of factors could be at work here, including change in energy cost, taxes as well as climate (i.e. less A/C or water heating). A similar trend can be observed across every single type of property. The biggest decline was observed for condominiums & other apartments, for which the average SP bill declined from S$177 to S$163, a drop of -8%.

How to Save on Your Monthly Utility Bills

Nevertheless, it's always worth taking the extra steps to reduce your monthly utility bills so you can have more budget for other things that matter, especially if it takes very little effort to do so. Besides purchasing energy-efficient appliances or turning off your water heater constantly, simply getting the right rewards credit card can help you save by earning cashback or miles on your monthly bill payments. Below are some of the best cards out there specifically for paying monthly bills.

UOB One Card: 5% flat cash rebate and spend about S$2,000 per month

Annual Income Requirement S$30,000
Foreigner Income Requirement S$40,000

OCBC 365 Card: Easy annual fee waiver, 6% rebate on dining & online food delivery, 3% rebate on groceries, land transport, recurring bills & online travel

Annual Income Requirement S$30,000
Foreigner Income Requirement S$45,000

Average Cost of SP Bills Differ by Size of Home

As one would expect, the size of SP bills depended heavily on the size of a person's residence. As you can see below, a 1-room HDB flat would have a SP bill that costs less than 10% of what it would cost for a bungalow. Interestingly, for a HDB flat, the cost of SP bill increased by approximately 30% for each additional room until you reach 4 rooms. For 5-room HDB flat flat, the cost increase was only about 9% from a 4-room HDB flat, while going from a 5-room flat to an executive HDB flat saw an increase in SP bill of about 17%. Interestingly, an apartment's SP bill was roughly the same size as a 5-room HDB flat's SP bill.

Average Monthly SP Bill by Residence SizeJan-17% Increase vs Smaller Residence
HDB 1 RoomS$62.32
HDB 2 RoomS$79.4727%
HDB 3 RoomS$105.2231%
HDB 4 RoomS$134.1527%
HDB 5 RoomS$146.7111%
HDB ExecutiveS$172.2517%
ApartmentS$163.22-1%
TerraceS$286.7969%
Semi-DetachedS$361.7226%
BungalowS$683.7488%

According to our research, an average SP bill consisted mostly of electricity bill. Electricity took up about 50% of an average SP bill, while water services took up the other 40%. Gas services cost the least, taking up only10% of an average bill. This makes sense given Singapore's tropical climate: people usually don't need much heating (i.e. gas) unless it is for hot water for showering or for cooking.

Breakdown of an average SP bill%
Electricity50%
Gas Services10%
Water Services40%

Methodology

SP segments its monthly SP data by size and type of residence for every type of property, from a 1-room HDB flat to a terraced property and a large bungalow. On the other hand, Singstat provides an abbreviated version of household debt that provides number of residences by type from 1-2 room HDB flats to landed properties.

In order to arrive at a weighted average monthly SP bill for the whole country, we had to make the data from two data by taking the average monthly SP bill data and estimating how it would appear on an equal categorization to the way Singstat segments its household data. Then, we took these two data sets that can now be compared on an apples to apples basis, and calculated the weighted average cost of SP monthly bills.

Duckju Kang

Duckju is the CEO of ValueChampion. He covers the financial services industry, consumer finance products, budgeting, and investing. He previously worked in the financial services industry, including at such hedge funds such as Tiger Asia and Cadian Capital.

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