SP Services said yesterday that electricity prices will increase by 6.5% between April and June from the first quarter to hit 25.58 cents per kilowatt hour due to hike in oil prices in recent months. The hike in power tariffs would be highest in two-and-a half years.

This increase in tariff would increase the average cost of a household living in a four room flat by an extra of S$4.85 monthly.

Hike in power tariffs will not affect HDB households because of the rebate issued under the "Grow and Share" package would cushioned the households from the increase. The package was announced during the budget in February.

According to new tariff plan, to offset at least five months of their utilities bill on average for those living in one-and two-room HDB flats they will get total Utilities-Save (U-Save) rebates.

Lastly in 2008, electricity tariffs touched the record high of 30.45% per kwh and latest hike is due to increasing oil prices by 14% from $99.45 to $113.37 per barrel over the last three months.