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Thread: Electricity bills up 21%

  1. #201

    Default Re: Electricity bills up 21%

    The answer from EMA.

    *********************

    Why electricity price hike was needed

    IN HIS letter last Friday, 'Billing consumers isn't the only way', Mr Bruno
    Serrien noted that the electricity tariff has increased by 48 per cent in
    the past 12 months. But this must be seen in the context of the rising
    fuel oil price, which has more than doubled during this period.

    As Singapore imports all its fuel, we have pegged the tariff to the cost
    of the fuel, so electricity is priced properly and wasteful consumption
    is minimised. The increase in the tariff this quarter was necessary
    because of the 38 per cent spike in the forward fuel oil price from
    US$83 to US$115 per barrel between April and July this year.

    Mr Serrien's claim that Singapore has the 'highest electricity price
    in the region and charges... more than countries like the US or France'
    is inaccurate and fails to account for differences in the availability
    of indigenous fuel and pricing policies across countries. For example,
    France generates 80 per cent of its electricity from nuclear energy,
    which is unaffected by the high oil price. On the other hand, Japan
    relies heavily on imported oil and gas, and charges a higher electricity
    price than Singapore. Within the US itself, there is a wide variation
    across the states and some have electricity prices which are
    comparable to or higher than the rate in Singapore.

    Mr Serrien also suggested that Singapore should move towards energy
    independence. But as a small country, Singapore has limited alternatives
    to fossil fuels. Hydro, geothermal and wind power are not available here.
    Nuclear energy raises issues such as safety and disposal of nuclear
    waste which have to be managed. Solar power has some potential,
    but realistically this cannot replace more than a small proportion of
    our energy needs. Solar is also more expensive than electricity generated
    from natural gas, although the technology is still improving and costs
    are gradually coming down.

    We agree with Mr Serrien that regulators should create mechanisms
    to protect consumers instead of simply 'passing the bill' to them. This
    is why the Energy Market Authority has focused on restructuring and
    liberalising the electricity market, to drive efficiency gains and ensure
    competitive pricing of electricity. The Government has also set up the
    Energy Efficiency Programme Office to design and implement energy
    efficiency programmes across different sectors. Going forward, we will
    continue to do our part to help households conserve energy and save
    on their electricity bills.

    Jenny Teo (Ms)
    Director, Corporate Communications
    Energy Market Authority


    (Link)

    *******************

    [ Flickr ]

  2. #202
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    Default Re: Electricity bills up 21%

    Quote Originally Posted by jasonlcs View Post
    The answer from EMA.

    *********************

    Why electricity price hike was needed

    IN HIS letter last Friday, 'Billing consumers isn't the only way', Mr Bruno
    Serrien noted that the electricity tariff has increased by 48 per cent in
    the past 12 months. But this must be seen in the context of the rising
    fuel oil price, which has more than doubled during this period.

    ... electricity is priced properly and wasteful consumption
    is minimised
    .

    Solar power has some potential,
    but realistically this cannot replace more than a small proportion of
    our energy needs. Solar is also more expensive than electricity generated
    from natural gas, although the technology is still improving and costs
    are gradually coming down.

    We agree with Mr Serrien that regulators should create mechanisms
    to protect consumers instead of simply 'passing the bill' to them. This
    is why the Energy Market Authority has focused on restructuring and
    liberalising the electricity market, to drive efficiency gains and ensure
    competitive pricing of electricity. The Government has also set up the
    Energy Efficiency Programme Office to design and implement energy
    efficiency programmes across different sectors. Going forward, we will
    continue to do our part to help households conserve energy and save
    on their electricity bills.

    Jenny Teo (Ms)
    Director, Corporate Communications
    Energy Market Authority


    (Link)

    *******************

    if every business price their products "poperly" to minimise waste die loh...

    solar got potential to free us from needing to pay more? sunlight is free, dunno how to charge, somemore every year cannot charge more. economists will have a hard time calculating & justifying any price hikes. got potential but never tap? Newater oso does not solve our water woes (we still import water), but maybe its a "cheaper" project?

    i wonder how much households islandwide consume vs businesses cunsumption. festive light-up electricity come from gym equipements (dynamo + battery?)?

  3. #203

    Default Re: Electricity bills up 21%

    Quote Originally Posted by jasonlcs View Post
    The answer from EMA.

    *********************

    Why electricity price hike was needed



    As Singapore imports all its fuel, we have pegged the tariff to the cost
    of the fuel, so electricity is priced properly and wasteful consumption
    is minimised. The increase in the tariff this quarter was necessary
    because of the 38 per cent spike in the forward fuel oil price from
    US$83 to US$115 per barrel between April and July this year.

    If one truely wants to help the people and minimise wastage, it should set a quota that covers the basic usage. If the quota is exceeded you can charge at a higher price.
    It is fair to both the rich and poor. what do you think?
    Charging high price from the begining has a squeeze out effect on the poor.
    Last edited by Silence Sky; 16th October 2008 at 07:29 PM.

  4. #204

    Default Re: Electricity bills up 21%

    In certain context of Singapore, "fair" is only a word.
    Anything else has no meaning.
    Quote Originally Posted by Silence Sky View Post
    If one truely wants to help the people and
    minimise wastage, it should set a quota that covers the basic usage.
    If the quota is exceeded you can charge at a higher price.
    It is fair to both the rich and poor. what do you think?
    Charging high price from the begining has a squeeze out
    effect on the poor.
    [ Flickr ]

  5. #205
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    Default Re: Electricity bills up 21%

    Well, 2 power plants have been sold to foreign owners. Left with 1. So in future, who determine the price? market driven or still EMA decides. If EMA decides, is it independant enough to provide "fair" or "reasonable" justification?

  6. #206
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    Default Re: Electricity bills up 21%

    Quote Originally Posted by shorty View Post
    Well, 2 power plants have been sold to foreign owners. Left with 1. So in future, who determine the price? market driven or still EMA decides. If EMA decides, is it independant enough to provide "fair" or "reasonable" justification?
    The problem here is even though the power plants are private entities..but are consumers given the choice to select which owner u want to "purchase" ur electricity from? Unlikely. We still have to go through Singapore Power. I think the entity gaining advantage here is Singapore Power, as the two private entities will compete in pricing. What I think is that, EMA has made a very lame move over this price increase, as they are using fuel price as an excuse. It should be made transparent, how much this private entities are actually selling electricity at what price. Then it will justify over the price increase.
    This is an electronic post which requires no signature.

  7. #207

    Default Re: Electricity bills up 21%

    With price of crude oil plunging downward, I hope the next forward pricing is 42% marked down, plus a reimbursement of the wrongful forecast for previous 3mths.

    Like it or not, there will be no transparency. You want to look under the skirt, marry her.

  8. #208
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    Default Re: Electricity bills up 21%

    where is the corporate social responsiblility? at the end of the day, as an essential service provider that is not a lost making venture, least the could do in tough times is suffer together lah!!

  9. #209

    Default Re: Electricity bills up 21%

    Quote Originally Posted by contaxable View Post
    With price of crude oil plunging downward, I hope the next forward pricing is 42% marked down, plus a reimbursement of the wrongful forecast for previous 3mths.

    Like it or not, there will be no transparency. You want to look under the skirt, marry her.
    You have to wait long long...
    This is the classic example that defies Newton's law. when it goes up it will not come down..

    Today the oil price is less than USD$70, but our pump price is still at the price of USD$82 making reference to last year pump price.
    Is there fair trading? Only CASE knows best.


    But let's keep this thread alive and see how the authority response to pricing three months later.

    Year 2003 – Oil USD$ 23.35/barrel – 15.85 cents/kwh.
    Year 2007 – Oil USD$ 75/barrel – 21.38 cents/kwh.
    Last edited by Silence Sky; 22nd October 2008 at 09:44 PM.

  10. #210
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    Default Re: Electricity bills up 21%

    no point, when oil prices go up they cite the oil price, when oil price go down they cite other operational costs, future infrastructure costs...

  11. #211
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    Default Re: Electricity bills up 21%

    Yah, electricity bill jumped up. But too bad.

    Singapore is small and not very advanced technologically.
    We do not have the option of cheap nuclear energy. (that both US candidates Obama and McCain talked about in their speeches)
    If a nuclear energy plant is built here and there is an accident like Chernobyl, the whole Singapore will be affected because we are so small. Russia can afford to experience a nuclear reactor meltdown and move on from there. We cannot.

    Moreover, nowadays nuclear energy plants would be a magnet for terrorist attack, due to the widespread aftermath.

  12. #212

    Default Re: Electricity bills up 21%

    wat can u pple do ? shout ? scream ? curse ? ... at the end of the day u pple also pay up as required.


  13. #213

    Default Re: Electricity bills up 21%

    Quote Originally Posted by Exposure View Post
    wat can u pple do ? shout ? scream ? curse ? ... at the end of the day u pple also pay up as required.

    "u pple'? My guess is you are not part of this country then?
    Last edited by Lenscapes; 27th October 2008 at 10:28 PM.

  14. #214

    Default Re: Electricity bills up 21%

    Quote Originally Posted by Lenscapes View Post
    "u pple'? My guess is you are not part of this country then?
    i am part of the country but i keep quiet.

  15. #215
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    Default Re: Electricity bills up 21%

    Anyway, I wish that Karma will have it's own way of dealing things.
    As they also planing to speed up the internet access in the year 2012 or so... Do prepare for that too. Good luck.

  16. #216

    Default Re: Electricity bills up 21%

    Just got my PUB bills..............all I can say is I will up my middle finger is any MP comes to visit us.

    It's not funny......seriously.......and I have been cutting a lot........now sleeping with only fan, aircon is turn on for 6 hours during weekends at 25 C.

    Instead of using desktop to surf the net and do work, now my wife and I switch to laptops which consume less electricty.

    Warm shower in the morning only.

    Turning off every single outlets which is not use at all.

    Even my battery chargers will only be turn on when there is batteries on it.

    My whole household uses those low powered bulbs.

    Will only turn on the lights when necessary.

    Most of my electrical components are at least 3-4 ticks ratings.

    Really sounds like torturing but it's good for the enviroment.

  17. #217
    Senior Member xtemujin's Avatar
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    Arrow Re: Electricity bills up 21%

    They vote with their feet and emigrate to another country.

    It's becoming too expensive to live in Singapore.

    The GST was increased to 2% to help the poor, but you add 21% tariff for electricity and there is now a Pay as you use(PAYU) for electricity.

    Quote Originally Posted by Exposure View Post
    wat can u pple do ? shout ? scream ? curse ? ... at the end of the day u pple also pay up as required.


  18. #218
    Senior Member xtemujin's Avatar
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    Arrow Re: Electricity bills up 21%

    SINGAPORE Power (SP) made more than $1 billion in profit in the last financial year.

    Yet, it increased electricity tariffs by about 20 per cent earlier this month.

    Asking for more, when the cash box is already full, puzzles ordinary people.

    And why a hike now, when Singapore is in a technical recession and inflation is high?

    Singapore Power's profit after taxation was $1.09b for the last financial year, according to its March 2008 financial report.

    This included an exceptional gain from the sale of the Singapore Power Building.

    SP, a wholly-owned subsidiary of Temasek Holdings, has explained that the tariff hike was due to fuel oil price increases and the profits are to fund future infrastructure projects. (See report, right.)


    But this, clearly, has not appeased consumers despite detailed replies from the Government to queries from Members of Parliament (MP) in the House earlier this week.

    MP Lee Bee Wah (Ang Mo Kio GRC) and Nominated MP Gautam Banerjee were among those who queried the excessive returns.

    Ms Lee asked: 'Our SP Services made millions of dollars and yet the price of the electricity tariff goes up.

    'So maybe we really have to look into a separate formula of pricing the electricity tariffs. Perhaps one of the yardsticks is the profitability that they make.'

    Singapore Power is the parent company of SP Services, which supplies electricity to all households here.

    The Energy Market Authority (EMA) regulates the transmission charges of SP Services as it is a monopoly.

    Given the billion-dollar profit, it is little wonder that consumers remain unhappy over the hike, despite painstaking explanations from the company.

    Why can't our billion-dollar Singapore Power absorb the hike? Or cushion the blow with a smaller hike?

    Technician Alvin Cheong finds the raised tariffs difficult to stomach.

    The 39-year-old, who is married with a son, 2, pays electricity bills of about $120 a month.

    'I understand that the company needs to make money. But I find it hard to accept when they make a huge profit and still increase prices,' he said.

    Some asked if SP, which is essentially a monopoly service provider, should make such huge profits.

    Dr Huang Fali, an assistant professor of economics from SMU, explained that public utility firms providing essential services such as electricity, water and transport should focus on maximising the welfare of society.

    She said: 'This includes making consumers better off. That's the aim of a public utility firm.

    'But when these providers make money, it's tough to justify price increases.'

    Assistant professor Gopi Rethinaraj of the Lee Kuan Yew School of Public Policy noted that the Government is usually cautious and plans for the future, especially in terms of infrastructure.

    'Obviously, anyone would be upset when prices go up. But ultimately, this revenue would be going back into the economy in other ways such as the creation of more jobs and infrastructure for future generations.

    'Sometimes, profits are made for capital investments. If it's going to find its way back to infrastructure, then it's fine,' said Prof Rethinaraj, who specialises in climate policy and energy technology.

    MP Lee Bee Wah told The New Paper that many of her residents still find it difficult to accept the company's explanation.

    She said: 'The sentiment among them is that you (Singapore Power) made a billion dollars profit and upi still increase tariff by 21 per cent. That's a lot of money.

    'If the company has already made so much, does it still need to raise the tariff?'

    She hopes the company will revise its pricing formula and consider pegging profitability to the formula.

    Infrastructure: Who should pay?

    Mr Leong Sze Hian, president of the Society of Financial Service Professionals, questioned the logic behind consumers paying for future infrastructure.

    'In most countries, such infrastructure funding is rarely borne by the operators. (It) is part of national development and, rightly, should come from the state's coffers.'

    Mr Leong said that few companies dip into their past profits for future growth and expansion.

    Usually, these funds are raised through bank loans or the issuance of bonds.

    He said: 'No company will rely solely on their past profit for growth; it'll come from a mix of sources.

    'If their growth is based purely on profits, they'll never grow because you never know if your profits will be sustainable into the future.'

    In its annual report, SP said its electricity grid is rated 'as one of the world's best performing networks'.

    SP recorded revenue of $5.4b and assets of $29b in the last financial year.
    ---------------------------------------------------------------------
    Fair rate of return helps investment

    ABOUT $5 billion will be used to invest in the Singapore electricity grid infrastructure over the next five years, said Singapore Power.

    The company said its bottomline does not benefit from the tariff increase to consumers.

    This is because all the extra earnings go into paying for the higher cost of fuel, according to a Straits Times report last week.

    Singapore Power said that the $1.09b profit included the results of their international operations and the sale of investments.

    Singapore Power has three arms of business.

    First is the electricity grid, the second is the gas grid and the third is SP Services.

    Minister of State for Trade and Industry SIswaran told Parliament on Tuesday that all three are regulated by the the Energy Market Authority (EMA) to make sure that they do not earn a super normal rate of return.

    Said Mr Iswaran: 'So the EMA uses international industry benchmarks to ensure that whatever rate of return they earn is a reasonable rate of return compared to international standards.

    For investment

    Mr Iswaran continued: 'Why should there be a reasonable rate of return?'

    He said it is because if there wasn't such a rate, 'how do you continue to improve and upgrade your infrastructure?'

    If Singapore Power does not earn what is considered a fair rate of return by industry standards, then the company will be tempted to cut back on that investment.

    This is because it is not in their shareholders' interest and therefore not in the company's interest.

    Mr Iswaran added that with reasonable returns, the company will continue to upgrade itself in terms of technology and efficiency and those benefits will then filter down to consumers.

    http://newpaper.asia1.com.sg/news/st...181207,00.html?

  19. #219
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    Default Re: Electricity bills up 21%

    next time everyone better vote properly.

    even hong kong electrical bills are cheaper than sg..... what's going on?

  20. #220
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    Default Re: Electricity bills up 21%

    Quote Originally Posted by jacob View Post
    even hong kong electrical bills are cheaper than sg..... what's going on?
    dun compare other countries leh, despite them often a step ahead of us.

    as consumers we have to ensure these service providers are always 'one of the world's best performing networks'...

    who's providing service to whom siah...??
    Last edited by sORe-EyEz; 28th October 2008 at 12:28 AM.

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