Leong Sze Hian
Singapore Power made profits of $1.086 billion in FY2007/2008, which is a per annum increase of 15 per cent. Despite this, in the last quarter of 2009, electricity tariffs for household was raised by 12.5 per cent. And now, in April 2010, it is being raised again. (See here)
Everyone is asking: Why is the electricity tariff up again on 1 April, despite the decline in real wages last year, about 60,000 residents still unemployed as of December, and Singapore is just coming out of its worst recession?
Well, the answer may be that we do not have the answers to the following questions:-
According to this government website, “From 2000 to 2006, the electricity generated by natural gas has increased from 19% to 78%.” So, why is the electricity tariff pegged to crude oil prices which have been rising, unlike natural gas prices?
Since Singapore’s overall power generation efficiency has improved from 38% in 2000 to 44% in 2006, why has it not been translated into savings for consumers? (See here)
Why are the contracts between power generation companies and suppliers confidential? If such information is public information, we can try to determine the link between crude oil, gas prices and electricity prices, and also how and why so much profits are being made?
Why were all our three power generation companies given to Temasek sold to foreign companies without any debate in Parliament on the sale of such strategic state assets?
In most countries, electricity infrastructure funding is rarely borne by the operators. It is part of national development and, rightly, should come from the state’s coffers. So, why is Singapore so different in this respect? Why not lower electricity and gas charges and fund power infrastructure investments using general taxes?
According to Hong Kong electricity producer CLP Power, which supplies about 80 per cent of Hong Kong’s power needs, in a media statement in Sep 2008, Singapore was ranked second among 21 cities for raising electricity tariffs most, since 2005. Why?
According to the Energy Market Authority’s (EMA’s) chart on fuel oil price versus the low tension tariff, the tariff was $22.62 in January 2008 when fuel oil was $96.64. Since the tariff is pegged to fuel oil, why is the tariff for January 2009, at $22.93, higher than that in January 2008, when fuel oil was lower at $92.99 compared to $96.64 in January 2008? This means that year-on-year, despite a 4-per-cent fall in fuel oil, the tariff increased by 1 per cent. So, is the tariff pegged to fuel oil or not?
Singapore Power made profits of $1.086 billion in FY2007/2008, which is a per annum increase of 15 per cent, from the $630 million profits in FY2003/2004. Why allow a state company that has a monopoly in providing an essential utility to make so much profits?
What are the total profits in a year for the electricity sector, i.e. the delivery of electricity (Singapore Power) and the power generation companies?
Why is it taking so long for there to be competition in the electricity sector, and the opening up of the retail electricity market?
According to the Yearbook of Statistics Singapore, the water, electricity and gas tariffs’ price indices rose by 8.6, 2.8, and 4.2 per cent a year from 1995 to 2005, against inflation of just one per cent.
In the last quarter of 2009, electricity tariffs for household was raised by 12.5 per cent. (Channelnewsasia)
Why were electricity prices allowed to increase so much more than inflation?
Singapore is the country with the highest electricity prices in the region and charges its consumers more than countries like the United States and France. Why?
Why did the number on the Pay As You Use (PAYU) meter scheme increase from 12,200 in December 2006 to 13,243 in 2008?
How many households are in arrears on their electricity bills?
Why are there no regular updates in Parliament or the media, on the statistics of “households in arrears”, number of PAYU meters, electricity sector profits, etc?
How are the key corporate officers and board members selected and appointed to the various boards in the electricity sector? How independent are they? How likely are they to look out for the interests of consumers?
Many of the above questions may not need to be raised in most other countries, as the electricity sector is generally considered as a public good that demands the highest standards of corporate governance, transparency, accountability, parliamentary oversight, etc.
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In 2008, in response to a letter to the Straits Times, the Energy Market Authority said:
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.
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Headline picture from: http://www.khngai.com
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In September 2009:
In April 2010:
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“save electricity” is a funny phrase to use, when the aim is to “suck money”.
It is peoples blind belief that privatisation will lead to more competitive prices that need to wake up and see that privatisation is a tool that is to be used when beaucracy leads to inefficiency. But in Singapore any profit making govt entity is privatised for elites own greed
Good luck to our future
Singapore is so broke from failed investments, someones got to pay to replenish the coffers
The prices of houses and cars had already run away now’…. its electricity……. whats next sell your house and car and leave for cheaper country
Of the many cases in Singapore, this is another strong case why Singaporeans must vote out PAP. PAP should not argue that we are daft to do so, because if we don’t vote PAP out, we are really daft.
Earning that kind of profits by just being a distri butor and billing agent is obscene. Those who are in power to make decisions is not doing justice to themselves. In fact, they find is appropriate to put out full page ads to try and justify their price hike. Alot of questions with no answers, thats how they treat us. May God bless us with the courage to vote them out.
The taiwanese media is blasting the power companies for raising prices almost every few days.. Sinkies.. Sorry no one is going to give a heck abt u guys unless u guys fight for it
this could be a commercial decision by commercial enterprise, and it cant be helped.
of cos.
Upset by rising electricity bill? Nothing says “Screw You!” to the Pappies more than disconnecting yourself from the power grid and installing a wind turbine atop your home.
http://www.youtube.com/watch?v=rW9p7yBJC0U
The Pappies can have their electricity.
In many countries, utilities are regulated, whether they are private or public. Their return on investment is set by the law. They have to justify and recieve regulator’s approval for any rate changes. Utilities are regulated because they are monopolies and there is no price competition.
what did leekuanyew do? the 1st thinggy he did was to break public utiity board from the country peasant ownership into a private company or semi government (1/2 temasek 1/2 singapooriums) then he grouped into another company which endup under hoching inc…what hoching did was simple..she sell the rights to 3 different international incs…
which in turn become a buisness commodities..in any normal sane countries.. the peasants/public would rised with changkoks spades and forks…in singapoor..however the 66% of the peasants are too stupid and timids… this is where and how we the 33% would sufferred and die a pennlies/peni sless men…
~sigh~
Silly Mr Leong. Singapore Power made profits, but the wealth does not trickle down in the form of savings for Singaporeans.
Singapore Power is a ‘privatised’ company, and it’s first duty is to maximise profits for its shareholders, especially its MAJORITY SHAREHOLDERS (you know who). Ditto for public transport companies and telcos etc.
But hey, no complaints please. The sheep has voted unanimously for a government of wolves and obviously thought that life in a corporate fascist state is a good deal. You still have people who wonder aloud about the credibility of a non-PAP govt – obviously they like the current status quo and order of things.
I would say , probably the ever increasing tariff are part of the agreement that the private companies brought the asset from Temasek.
Nothing to do with fuel oil future contract as the natural gas piped from indonesia are long term contract.
Our telcos and transport companies are GLCs, they have been ripping us off since day 1. Our mobile and broadband subscriptions and air time have not come down despite “competition”, in fact we are higher than Australia, Japan, Korea and Hongkong.
If you look at the dividends from GLCs, they pale in comparison to private companies listed on SGX.
Despite enormous profits, they are continue to screw us with new hikes. Are they trying to bury the $54B gap?
The tariffs have increased. The profits are great.
Let’s move on.
come next election, watch the pigs vote the PAP in again.
the average Singaporean is daft for voting the PAP in after their dirty acts in Operation Cold Store.
but the pigs will continue to defend their vampire masters and say that without LKY, SG would be long gone. i dun wanna argue on how good/bad LKY is right now, but i just wanna say that those pigs dun seem to know that today’s date is April 3 2010 already!
Vote for PAP…as long as people keep quite, they will not bother.
Good article TOC.
State assets are being hawked and nobody bothers….I hope they are shown in this coming election. All we need is 2 to 3 GRC’s to wake up many.
Can TOC run an article on our election procedures and see how independent it is.
“Have you guys ever wondered why this Leong Sze Hian has so much to criticise about the Government?” My Views
LSH is doing Singaporeans a favour.
Ever wonder why LKY, LHL and HC from famiLEE is doing Singapore in and enriching themselves?
Comments from My Views shows you are on the take from pappy.
VOTE PAP OUT
Vote the PAP out. Digged those classfied deal and docu out of the gov closet. You will see how many so called “clean, corruption free” people screaming for cover. Maybe like their china counterpart, fleeing the country to elsewhere.
Haven’t the gahmen given much to the shittyzens of Sinkapore. To whom have been given much, much will be required of them. The economy is back on track and it’s pay back time.
Quote from http://www.littlespeck.com, “WHILE Singapore is busy attracting talents from abroad, some 4,500 of its own better-educated citizens may be heading for New Zealand.” Why do you think?????
““Have you guys ever wondered why this Leong Sze Hian has so much to criticise about the Government?” My Views”
My Views,
he is not criticizing. He is asking questions on our behalf that we Singaporeans should be asking and knowing since we are affected by the gov’s greedy and self-serving policy. It is people like you that Singaporeans suffer… and sure enough I have no doubt that you are in paycheck by gov to troll this netizen’s sites and perpetuate as gov’s mouthpiece.
Please continue to give your nonsense because that will only fuel our angst to vote out the PAP.
They’re helping Singaporeans save electricity by making it too expensive for them to use much of it.
I’m from the US and when I first saw the electricity bills here in Singapore I thought I was going to have a mild heart attack.
WTF is with the electricity pricing? Electricity is supposed to be a utility, not a corporation that tries to **** the end user over as much as possible and suck them dry of their money.
A country can’t be first world if people can’t even afford to use basic electrical appliances regularly. The government should step up and protect its citizens, and those of us who are here temporarily as well.
“Have you guys ever wondered why this Leong Sze Hian has so much to criticise about the Government?” My Views”
I am wondering why any national institution should be above criticism. More so if their policies have much wider national implication(s) where there will be likely compliance cost involved.
This Govt. is evil.
It is time the people vote in the Opposition so that they can take the necessary action to reocover all Strategic National Assets sold by the State.
No one is checking against these big earners..
isn’t selling away national assets considered acts of treason?
What have ho done?
sell these assets that make a lot of monies and then mis-invest those monies on lousy deals.
In the end, what do we get? a hefty electrical bill, minimum sum and not being able to take out cpf savings.
In most countries, electricity infrastructure funding is rarely borne by the operators. It is part of national development and, rightly, should come from the state’s coffers. So, why is Singapore so different in this respect? Why not lower electricity and gas charges and fund power infrastructure investments using general taxes?
GST was to help the poor…. they said that.
“Why were all our three power generation companies given to Temasek sold to foreign companies without any debate in Parliament on the sale of such strategic state assets?”
Because of failed investments.
This is what you get when Prostitutes And Pimps run the ountry for their sole benefit!!!
Even though I agree with him/her, it’s amusing to have Some American post about the absurdity of our tariffs when they had the healthcare reform debates going on. :P
But yes, PAP = Republicans. But privatisation is not always the best.
Electricity price is pegged to the fuel price 3 months ago. hence you dont see an immediate rise /fall when the crude oil price rise /fall. This is forward pricing.
Singapore’s elect tariff is high – because the reliability and efficiency is better compared to most cities like Tokyo and Hong Kong. We have a fully underground grid network that is well protected from the rain and shine. A lot of technology and manpower efforts are put in to maintain this system.
Compare yourself to both developed and devleoping countries. How often have you encountered a blackout? How much have u enjoyed uninterrupted supply of utilities?
Good quality comes with a price. You pay peanuts, you get monkeys.
i sue u la if you say i suck money or pay judge to make ruling in my favour or say i racist. thats the truth about singapore government. very sad. transport system make money. utilities make money. car also make money. they say give handouts, that handout can last for how long, pity la. instead of engaging and accepting their greed, its about defending their greed and prestige. their family and immediate family definitely no need to work, yet they so greedy.
how to save electricity & stop the use of air-conditioning when they’re building high-rise green houses??
come home in the evening, open the door, u feel a gust of hot air greeting you. step into the living room, the floor tiles are hot, the air within the home reminds u of being in the sauna.
u open all windows & door hoping for breeze to pass through, but you realize the air is still, regardless north-south-east-west facing, the corridors no longer passable for breeze.
what’s the next cause of action? switch on the fan and/or air-conditioner……. NEA, HDB & PUB should fight it out among themselves 1st before they erect the overpriced high-rise greenhouse prison cells.
Hey ppl here,
1) We were told to accept lower pay if we want to keep our job but not our electrical bills and food inflation ?
2) We were told that with privatize entity means ensure fair competitions with a lower in prices(better) for consumers ? Is it true now?
3) Even many Aquarium shops in singapore has given up because it has become an expensive hobby to keep fish which could help one to reduce stress from one’s work. You can find almost new fish tanks been discard at rubbish corners more often.
4) Salary Down, prices go up : Simple maths 1+1 =2 and 1-1 is 0 , how come those entity cannot count?
Sad man
I have to work 2 job just to pull through a living.
We are depressed and stress by high electrical bills, high dentistry bills and high medical bills.
Sad man
Just got the bill! Increase again!!!!!! It had been increasing non-stop for 5 quad, which other place can increase like that!
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