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We have joined this forum for sometime now.
We have had a few discussions on the privatization of state run companies.
History and experience has proved to us that is not working in our Singapore Economy.
1) They try to create two broadcasting company - Failed.
2) They try to create two Rails operators - End result is fare hike.
We are just trying to create a false sense of free economy. Let's face it, MIW just don't want to sudsidise you and do not want to play the bad guy. So when there is fare hike, they will say it purely business decision since it is privatised and it not MIW's problem anymore.
But look who’s still controlling the Telecommunication after they liberalised the telco sector.
Global gas price is linked to oil price movement. This is same for every commodity that can be a good substitute to oil (e.g. coal). You may look at Henry Hub gas prices and compare it with oil price movement over time. As a small country with no resources we can't delink from the market. If we don't pay market price, we don't have our oil and gas and hence electricity.
There is a global market for gas prices and generally, gas contracts are linked to oil price movement. Our neighbours are not stupid.
Last edited by foreverlovex; 2nd October 2008 at 02:33 PM.
The problem here is that there is no alternative for HDB dwellers to get off the grid and use solar power.
There's no real push here in Singapore for alternative power source like solar and wind.
For 1&2.....don't know what the govt wants to do. Plain Stupid.
Telecommunication may still have a chance in the future if they let an independent party to own the backbone of communication.
I not really for subsidies, especially when there is no positive externalities to it.
well,.... privatising the energy market is a success! lol....
Just an example, if govt still runs the show, gencos would not be using gas to generate electricity and would still be using oil. This is becoz of the huge capital layout to write off the steam plants which use oil.
Gas is cleaner and a more efficient fuel. This is impt given that 60% of the electricity cost is fuel cost.
The problem is there is still a long way to go before demand catches. High electricity prices and oil prices, may provide the drive for demand to catch up faster.
They have hedged the oil at S$155, I think is it fair as major airlines have also hedged at that price range.
How about we try to take a look at figures in my way of thought:
Year 2003 – Oil USD$ 23.35/barrel – 15.85 cents/kwh.
Year 2007 – Oil USD$ 75/barrel – 21.38 cents/kwh.
Since every business has their own base line for manufacturing cost, I will try to estimate the electricity tariff at Oil USD$100/barrel using the above figures. A 5 years spread will give a more accurate estimation.
From calculation: Every 1$ increase in oil price, will lead to a 0.107 cents increase in the electricity tariff.
An increase of $25 in Oil price, we should see a 2.675 cents increase in the tariff.
Therefore at USD$100/ barrel, it should cost 24.055 cents/kwh.
Last edited by Silence Sky; 2nd October 2008 at 03:30 PM.
Think i had to start to charge my handphone, ipod and all my camera / flash battery in the office............
Opinions are like A-holes. Everyone's got one.