Singapore Power's tariffs
-
Nov 7, 2006
Singapore Power's tariffs don't reflect market forces
I REFER to the recent drop in crude oil prices, weakening of the US dollar and the increase in electricity tariffs from Oct 1 by Singapore Power.
I do not see why it has to review its prices quarterly, instead of matching market fluctuations in oil prices and the US dollar.
=> Cos Sporns are prone to amnesia, so that they'll get used to high prices a few months down the road?
Lower crude oil prices and a weaker US dollar had resulted in petrol companies reducing their pump prices and SIA is revising its fuel surcharge. These companies are adapting to market forces but not Singapore Power. By charging consumers a three- month fixed tariff, how much would it have gained?
I think the reason why Singapore Power can hold on to its quarterly pricing is that it has a monopoly of the energy market.
=> Where's CASE? And do well to remember that *almost all* of Peesai's power stations are fired by natural gas, which has been on a year-long down trend!
Petrol companies in an oligopolistic situation are sensitive to consumers' need. If one firm cuts the petrol price, the rest have to follow suit to retain market share. As for SIA, though it is a national carrier, there are other airlines in the aviation market and it needs to keep up with the competitors in reducing the fuel surcharge.
I had written earlier that Singapore Power is not flexible in its electricity tariff's savings over the years when the tariff rates are not a reflection of the prices in the oil market and the US dollar.
It should be transparent to show how much is the cost of fuel oil in the pricing of the electricity tariff.
It should also be flexible to review and adjust the electricity tariff monthly or regularly according to market forces to shed the image that it monopolises the energy market.
I remember quite well that SPS and one of the minister said in Sinkapore 50% of electricity were generated by fuel.
Recently, our president mr nathan said in TV....80% of electricity were generated with natural gas...SO....who is telling lies. -
STI Home > ST Forum > Online Story > Print >> Back to the article
Nov 27, 2006
S'pore Power, as people's asset, should consider lowering its profit margin
I refer to Yow Wai Mun's letter "Singapore Power's tariffs don't reflect market forces" (ST, Nov 7) and Singapore Power Limited's (SPL) reply 'Singapore Power results boosted by international ops' (ST, Oct 27) to my letter 'Why delay opening up electricity retail market ?' (ST, Oct 16).
SPL's reply states that 'the improvement in the results of the group from 2004 to 2006 is due mainly to our international operations...The number of accounts in arrears exceeding $500 for three months and longer is about 3,600 and the number of Pay-As-You Use (PAYU) meters installed todate is about 12,500'.
Does 'due mainly to our international operations' mean that more than 50 per cent of its profits were due to international operations?
As it is the subsidiary of SPL, SP Services (SPS) is the sole provider of electricity to consumers in Singapore. I would like to ask what was SPS's profits and profit growth from 2004 to 2006.
If the majority of SPL's 53 per cent profit growth last year was due to international operations, I suggest that it considers reducing the profit margin of its local operations.
SPL's assets were built up over the years by being the monopolistic supplier of electricity and these were derived from the earnings and profits that came from the monies paid by Singaporeans.
SPL is the asset of the people of Singapore, and it is not privatised as a listed company yet. So none of its profits are being returned to Singaporeans by way of dividends.
Its overseas expansion would not have been possible without the revenues generated by the electricity bills of Singaporeans over the decades.
In the past, statistics on arrears were given for those of more than three months, and the highest figure ever reported was about 10,000 ("Pay-as-you-use meters to help poor households", ST, April 22, 2005).
Now, by changing the benchmark for the statistic to 'arrears exceeding $500 for three months or longer', the number has dropped dramatically to about 3,600 in just over a year. Does it mean that almost 71 per cent of PAYU households have paid off their arrears?
Why not go back to the old statistical measure for arrears, and just tell us how many are in arrears for more than three months, in addition to those exceeding $500?
Leong Sze Hian -
Maybe, this could happen........
I suspect some dumb fuck in SP went and hedge when the price of oil was going up and locked in at a high price. So now we all got to pay for it. -
In the past, statistics on arrears were given for those of more than three months, and the highest figure ever reported was about 10,000 ("Pay-as-you-use meters to help poor households", ST, April 22, 2005).
"meter every drop of their usage" is not the best way to help the poor.
Suggest that they offer subsidies 10to 30% off their electricity bill, that will be a better way to help them -
money money money...
-
What?Originally posted by Lowclassman:Maybe, this could happen........
I suspect some dumb fuck in SP went and hedge when the price of oil was going up and locked in at a high price. So now we all got to pay for it.
You suspect a CAO type scandal?
-
They should adjust the electricity bill down.. cannot la.. cannot support the government liao.. too many things rising..
-
mai gong ah.
the only thing that will drop is our balls. -
Originally posted by Lowclassman:
To put it correctly, all the generating power plants in Singapore use fuel (fuel oil, diesel, natural gas, etc) to generate electricity. Natural gas is the fuel used for generating 80% of electricity used in Singapore.
Nov 7, 2006
Singapore Power's tariffs don't reflect market forces
[b]I remember quite well that SPS and one of the minister said in Sinkapore 50% of electricity were generated by fuel.
Recently, our president mr nathan said in TV....80% of electricity were generated with natural gas...SO....who is telling lies.
[/b]
Fuel cost makes up about 50% of the cost of electricity delivered to your door step.
Do I make sense? -
Your phrasing maybe right...but are you sure we were being told in this way, about 50% of the cost of electricity delivered to your door step.Originally posted by pisces8:To put it correctly, all the generating power plants in Singapore use fuel (fuel oil, diesel, natural gas, etc) to generate electricity. Natural gas is the fuel used for generating 80% of electricity used in Singapore.
Fuel cost makes up about 50% of the cost of electricity delivered to your door step.
Do I make sense?
?
I thought I heard president Nathan said 80% of electricity supply were generated by Natural Gas?
Maybe the mini-stars fark gas will be highly concentrated with flamable toxic. -
Generally, it is true that 80% of electricity supply were generated by using Natural Gas as the fuel.Originally posted by Lowclassman:Your phrasing maybe right...but are you sure we were being told in this way, about 50% of the cost of electricity delivered to your door step.
?
I thought I heard president Nathan said 80% of electricity supply were generated by Natural Gas?
Maybe the mini-stars fark gas will be highly concentrated with flamable toxic.
It is also generally true that by the time the power supply reaches the user, in an average 50% of the cost that you pay for, is due to the fuel cost.
Of course there are a lot of technicality, eg there are the high tension users which pay an average of about 17 cents per unit, as compared to people like you and me paying 21.64 cents per unit as low tension users (domestic users). -
To clarify, all the power plants in Singapore burn fuel to generate electricity. 80% of the fuel used to generate electricity is of Natural Gas.
-
20c per kW is expensive?
-
Expensive is a relative term, depending to which country we want to compare to.Originally posted by ceecookie:20c per kW is expensive?
By the way, it is kWH (kilo-watt-hour) or simply unit. -
To further clarify:Originally posted by pisces8:To clarify, all the power plants in Singapore burn fuel to generate electricity. 80% of the fuel used to generate electricity is of Natural Gas.
The intial anouncement from PUB and ministar, 50% of diesel was used to generate electricity. -
PUB do not involve in power supply, they are involved in water, sewerage and drainage issues. Please pay them a visit to know more : http://www.pub.gov.sgOriginally posted by Lowclassman:To further clarify:
The intial anouncement from PUB and ministar, 50% of diesel was used to generate electricity.
If there is any announcement of this nature should be from Singapore Power or SP Services. Please pay them a visit to know more : http://www.singaporepower.com.sg
SP Services or Singapore Power will not use the term diesel for generation of electricity.
You have to show where you get your above statement from.