Singapore, September 28, 2026: Singapore’s wholesale electricity market has recorded its highest weekly price level of 2026, as volatility in natural-gas markets linked to the Middle East conflict pushes up the cost of electricity generation.

The Uniform Singapore Energy Price (USEP) reached S$486.21 per megawatt-hour (MWh) during the week of September 13–19, marking the highest weekly level recorded so far this year. The previous 2026 high was S$439.35 per MWh during the preceding week.

Natural Gas Costs Put Pressure on Power Prices

Singapore relies heavily on imported natural gas for electricity generation. Around 95% of the country’s electricity production comes from imported natural gas, making the power sector particularly sensitive to international fuel-price movements.

The Middle East conflict has disrupted energy markets and contributed to volatility in natural-gas prices. Higher fuel costs can raise the expenses faced by power-generation companies and, in turn, influence electricity prices.

Wholesale and Household Prices Are Different

The USEP is a wholesale market price, calculated according to electricity supply and demand in the market. It can change every 30 minutes as generators submit information about how much electricity they can supply and at what price.

Most Singapore households do not purchase electricity directly at wholesale prices. They either pay the regulated tariff or use electricity retailers offering fixed or other pricing plans.

For July–September 2026, Singapore’s regulated household electricity tariff was set at 31.91 Singapore cents per kWh before GST, an increase of 17% from the previous quarter.

Businesses Face Higher Energy-Cost Risks

For companies that purchase electricity directly through wholesale arrangements, sharp movements in USEP can have an immediate effect on operating expenses.

Energy-intensive businesses are particularly exposed to changes in electricity and natural-gas prices. Higher energy costs can affect manufacturing, commercial operations and other industries that require substantial amounts of electricity.

The impact on households is generally slower because regulated tariffs are reviewed quarterly rather than changing every few minutes with the wholesale market.

What Could Happen Next?

The direction of Singapore’s electricity prices will depend heavily on international fuel markets and developments in the Middle East.

Singapore’s Energy Market Authority has said that if the regional situation improves and fuel prices decline, electricity and town-gas tariffs could also decrease in subsequent quarters.

However, continued disruption to energy supplies could keep costs elevated.

The latest wholesale-price spike therefore provides an indication of how international energy-market disruptions can quickly affect electricity markets in Asia, particularly in economies that depend heavily on imported fuel.