as per subject.....
I always tell my visiting foreigner colleagues that Singapore Inc. has two faces to it:
One is the external facing Singapore Inc like Changi Airport, PSA, etc, with world-class standards and continually aspire to be the best.
The other is the internal facing Singapore Inc like SMRT, SP, etc, that, well, have entirely different "aspirations" (or lack there of)
Reality is our country's too small for multiple utilities providers. So their word (or price) is law. Suck it up, and cough it up.
I am no mathematician but how can a graph have 2 y-axis and they are of different units? why then can't I convert th eright hand side y-axis to say cents/KWDay? so it will appear much higher than the pink graph?
Is it right that we use oil to generate electricity or we use natural gas?
Q3 Why do tariffs increase in tandem with higher fuel oil prices when 60% of our country’s power generation uses natural gas as fuel?
A3 The natural gas contracts are pegged to fuel oil prices. Hence the prices of natural gas will also change accordingly when there is a change in fuel oil prices.
Hmm.. so what if we have multiple utilities providers? In the end, the two or few will just monopolise together and eat us up?
Singtel Mio TV and Starhub CableTV (Just read news today that both of them had submitted to bid for the EPL, looks like the sports channel prices going up again..)
I am not too sure about this other example. SMRT and SBS Transit. (do we ever see the prices go down or even stay the same because of competition?)
Last edited by hongwen37; 30th September 2009 at 02:04 PM.
the blue graph is the tariff (i.e. electricity price, what consumers pay).. pink graph is the fuel oil price (a 3 month forward)..
in short, sp is supposed to base its tariffs on fuel oil price. so that graph seeks to show the ups and downs being linked to the 3 month forward price.. that's all.
i dun think our power plant uses crude oil to generate electricity, so i dunno why increase in crude oil increases the tariff...
if natural gas is pegged to crude oil , why is it so ? its a different source of energy all together... the supply and demand is totally different...
if there is an increase in natural gas, shouldn'd the chart show the prices of natural gas to reflect the relationship to the tariff charges and not oil ?
But it will appear that the blue graph is much higher than pink one, right? since they are different units altogether, I see no correlation between the 2 except they are pegged against it other, this does not make it that the price we pay acceptable just that it goes up and down with price of oil.
In contrast to LNG imported to North America, where the price is pegged, most of the LNG imported to Asia is pegged to crude oil prices by a formula consisting of indexation called the Japan Crude Cocktail (JCC). The pricing structure that has been widely used in Asian LNG SPAs is as follows: PLNG = A+B×Pcrude oil, where A refers to a term that represents various non-oil factors, but usually a constant determined by negotiation at a level that can prevent LNG prices from falling below a certain level. It thus varies regardless of oil price fluctuation.
This one also damn kelong also...i have been paying my bill and consistently it is hitting 100-150(usage more or less the same)..there was one month in august it went to 40 bucks...i was damn shock...i ask my wife did we not shower for 1 month or sthg....
on paper up 12.5%...reality who knows...