FROM next month, electricity tariffs will go up nearly 6 per cent, to 22.62 cents per kilowatt-hour (kwh).

This is the highest price hike since 2001. The revision is the result of soaring fuel prices, said Singapore Power which released the January to March tariff yesterday.

The 1.24 cents per kwh increase works out to between $1.30 and $5.50 a month for one- to five-room HDB flats.

Between Jan 1 and March 31 next year, Singapore Power expects fuel prices to go up by some 10.5 per cent, from $87.46 per barrel to $96.64 (US$66.28) a barrel.

Electricity prices are adjusted every three months. The last increase was made for the October-to-December quarter when electricity costs went up between $1 and $4.20 a month for one- to five-room HDB flats.

Members of Parliament The Straits Times spoke to agreed that with the rising fuel oil prices, the electricity tariff hike is inevitable.

Dr Lily Neo, an MP for Jalan Besar GRC, said lower-income families and the elderly 'will definitely feel the pinch'.

She noted: 'Already, many don't switch on the lights at night to save the extra few cents. What we can do is offer financial help such as NTUC vouchers and food and grocery vouchers to tide them over.'

Dr Neo's ward is home to some of Singapore's poorest citizens. Half of the 32,886 residents live in 22 blocks of one- or two-room rental flats.

Dr Amy Khor, mayor of South West District, and Dr Teo Ho Pin, mayor of North West District, said vouchers are available for needy residents coping with existing utility arrears.

Dr Teo added: 'These needy are also encouraged to be on Pay-As-You-Use (PAYU) scheme.' This allows poor families to pay for electricity as they use it rather than face a supply cut-off when they cannot pay their bills.

Dr Khor said vouchers given out could then be used to top up PAYU utilities accounts, the bulk of which would be electricity bills. As of Dec 1, there were 13,470 households on PAYU.

Low-income earners were worried that the increased tariff would be an added burden.

Driver Mohammad Zul, 36, with a family of four living in a five-room flat, said: 'Every month, the moment I get my pay, I pay my bills.'

He earns $1,500 a month. His family's utility bill is about $200 a month. It used to be $150 less than half a year ago.

The electricity tariff hike will also affect public facilities like parks and carparks. Both districts already have ongoing programmes where energy efficient light bulbs and other appliances are used.

Dr Teo said he is looking at solar energy to run the lights in the parks and landscaped areas within his district. 'We have called for tenders and are looking at awarding them sometime soon,' he said.

Since January 2005, electricity tariff rates have been increasing almost every quarter, as fuel prices rise.

The latest rate of 22.62 cents per kwh is some 35 per cent more than January 2005's rate of 16.06 cents per kwh.

But when fuel prices go down, tariffs are also lowered. Last January, when fuel prices went down to $75.73 per barrel from a high of $88.52, tariffs also went from 21.64 cents per kwh to 20.02 cents per kwh.