Electricity prices must go down
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Originally posted by ArtBoon:
I am not making any judgement here whether SP is pricing its product reasonably or otherwise.
My theory is, if SP is organised to max profit, and faced with loss in goodwill from a bungled "arbitrage opportunity", it will try its best to profit using its monopolistic position to cover up.
and I am not saying you are making any judgement either :)
I am just saying that a monopoly like SP has every incentive to take more from their consumers because we are caught in a situation where if we don't pay, our electricity gets shut off. It's not just them, it's almost every monopoly that has that incentive.
So long as they ensure you don't die from them eating you inside out, ensuring they leave you enough for you to survive, that's probably their 'reasonable' amt.
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Originally posted by ArtBoon:
Theory says monopoly creates inefficiency etc.
Does not seem to be applying to SP which is making profit...
Making profits means no inefiiciency?
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Originally posted by eagle:
Add on
Thanks eagle, your picture is even more complicated for layman than words :)
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Depends on how you define inefficiency....
I am thinking in terms of profit only.
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Making profits means no inefiiciency?
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Of course. Captive consumers are always at the mercy of monopolistic providers.
I am just saying that a monopoly like SP has every incentive to take more from their consumers because we are caught in a situation where if we don't pay, our electricity gets shut off. It's not just them, it's almost every monopoly that has that incentive.
So long as they ensure you don't die from them eating you inside out, ensuring they leave you enough for you to survive, that's probably their 'reasonable' amt.
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Going by your numbers, is it reasonable for me to assume that that NG powered plants are actually cheaper than coal fire plants? Eg: more efficient, cheaper to build..etc.
If so, wouldn't the world be more inclined to build more natural gas power plants then? But somehow, it doesn't seemed to be the trend.
I'm not idealistic enough to believe that the power companies aren't trying to gain money from us if they can but at the same time i find accounting the entire price difference to just plain greed is just too simple an answer.
The government wants more foreign businesses to invest here,letting the power bill go beyond a reasonable level, discouraging such investments hurts them just as much it hurts us.
i dont think the high energy prices will hurt the business that much.
coz much of the tax tarrif that govt gain from charging SP will be redistributed for the reduce corporate tax.
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Originally posted by reyes:
i dont think the high energy prices will hurt the business that much.
coz much of the tax tarrif that govt gain from charging SP will be redistributed for the reduce corporate tax.
Not trying to be confrontational here, but do you have maths to back that conclusion up? Seems like quite a leap of faith there. -
Singapore Power is definitely pro business.
Business rate is definitely much lower than retail rate.
Pre sale rate to business is one third of what it charges retail customers.
See http://www.singaporepower.com.sg/publish/PR/Files/Approve/PR4_12422.html
I am just wondering what is the share of its retail customers....
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i dont think the high energy prices will hurt the business that much.
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Originally posted by ArtBoon:
Singapore Power is definitely pro business.
Business rate is definitely much lower than retail rate.
Pre sale rate to business is one third of what it charges retail customers.
See http://www.singaporepower.com.sg/publish/PR/Files/Approve/PR4_12422.html
I am just wondering what is the share of its retail customers....
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i dont think the high energy prices will hurt the business that much.
...it all adds up... drops of water an ocean makes....
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Intuitively so, but can't make assumption.
SP's annual report says it serves "over a million industrial and domestic customers"
No idea what is the breakdown in its revenue though...
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my electricity bill for this month is 728.8 wah lan eh fuck the f1 race
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Bro, what's f1 race got to do with the electricity bill?
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Originally posted by ArtBoon:
Bro, what's f1 race got to do with the electricity bill?
oh, there was this theory going around, that the F1 electricity bill, which was absorbed by the govt, went into the millions.
Coincidentally, after the F1, our electricity bill charges went up.
Many feel that it's the govt distributing the burden of F1 to its citizens :)
Given my already poor perception of the govt from a citizen pt of view, coupled with my good perception of the govt from a biz pt of view (really know how to make $$$), I believe there might be some truth in it :)
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Thanks. I am very "not in the picture".
However, this type of speculation is.... err...very difficult to substantiate?
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Originally posted by ArtBoon:
Thanks. I am very "not in the picture".
However, this type of speculation is.... err...very difficult to substantiate?
There's nothing really much to substantiate. It's just the very coincidental move to up our charges right after F1.
In addition, we all can speculate from the way the govt works, that it does its best to ensure minimal ZERO cost in all the aspects of things it does.
Examples:
Give more to the poor => increase GST
Build affordable HDB flats => Peg to market value (when the cost price of a flat was estimated by a citizen to be at most $50,000 for a 5-room) and claim it gives market subsidy of $30,000 or $40,000. Make flats smaller to lower costs and increase earnings
Build ERP rather than build a bridge or widen the road to ease traffic (coz bridges cost more and there's no ROI, ERP on the other hand, is easy to install and there's very good ROI)
Everything this govt does, is likened to a corporation. In most projects, it makes $$$ out of its citizens in one way or another, and at the very least, it must achieve zero-cost for its projects
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Because everything must be "cost recovery"?
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Originally posted by ArtBoon:
Because everything must be "cost recovery"?
yes you are right
It's the mentality of a corporation. Everything must ensure at least cost is covered. A corporation does not do anything that results in costs (loss) deliberately.
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Originally posted by soul_rage:
oh, there was this theory going around, that the F1 electricity bill, which was absorbed by the govt, went into the millions.
Coincidentally, after the F1, our electricity bill charges went up.
Many feel that it's the govt distributing the burden of F1 to its citizens :)
Given my already poor perception of the govt from a citizen pt of view, coupled with my good perception of the govt from a biz pt of view (really know how to make $$$), I believe there might be some truth in it :)
thanks soul rage u r a coherent speaker -
On the other hand, cost recovery does not mean profit. It means no loss. That's a lot of difference :)
It's the mentality of a corporation. Everything must ensure at least cost is covered. A corporation does not do anything that results in costs (loss) deliberately.
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Originally posted by ArtBoon:
Oil dropped from peak of US147 to current price of around US45.
It may be 45 now, but nobody's that much a prophet to foretell the future, ma!
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Nobody knows... could be higher or lower depending on your own view....
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Originally posted by TTT203:
It may be 45 now, but nobody's that much a prophet to foretell the future, ma!
What is your point? Your post does not seemed to have any objective at all
