For the period from 1 Jan to 31 Mar 2016, electricity tariffs will decrease by an average of 4.2% or 0.85 cent 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 8.9% compared to 4Q 2015.

For households, the electricity tariff will decrease from 20.35 to 19.50 cents per kWh for 1 Jan to 31 Mar 2016. The average monthly electricity bill for families living in four-room HDB flats will decrease by $3.55

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.