For the period from 1 Apr to 30 Jun 2016, electricity tariffs will decrease by an average of 9.6% or 1.83 cents per kWh compared to the previous quarter. The tariff reduction is due to the lower cost of natural gas for electricity generation which fell by 20.2% compared to 1Q 2016. While network costs went up due to infrastructure investment to replace ageing assets and meet rising electricity demand, the lower cost of natural gas more than offset this increase.

For households, the electricity tariff will decrease from 19.50 to 17.68 cents per kWh for 1 Apr to 30 Jun 2016. The average monthly electricity bill for families living in four-room HDB flats will decrease by $6.71 (see Appendix 3 for the average monthly electricity bill for different household types).

SP Services reviews the electricity tariffs quarterly based on guidelines set by the Energy Market Authority (EMA), the electricity industry regulator. The tariffs given in Appendix 1 have been approved by the EMA.

Issued by: SP Group

2 Kallang Sector

Singapore 349277

www.spgroup.com.sg

Appendix 2

BREAKDOWN OF ELECTRICITY TARIFF

1. The electricity tariff consists of the following four components:

1. Energy costs (paid to the generation companies): This component is adjusted quarterly to reflect changes in the cost of power generation.
2. Network costs (paid to SP PowerAssets): This fee is reviewed annually.
3. Market Support Services Fee (paid to SP Services): This fee is reviewed annually.
4. Market Administration and Power System Operation Fee (paid to Energy Market Company and Power System Operator): This fee is reviewed annually to recover the costs of operating the electricity wholesale market and power system.