April Fool Joke: Electricity Tariffs Increase?

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SINGAPORE – Electricity will cost more from tomorrow, as higher fuel prices have resulted in higher power generation costs, said electricity, water and gas supplier SP Services in a statement yesterday.

Tariffs for households will increase by 4.3 per cent for the quarter from April 1 to June 30, which will mean an increase of 1.19 cents per kWh to 28.78 cents per kWh. This will increase the average monthly electricity bill for families living in four-room HDB flats by S$4.18, said SP Services.

Households living in three-room HDB flats will see a S$3.08 increase in their average monthly electricity bill, while families in five-room HDB flats will see a S$4.83 increase.

The average fuel oil price over the last three months – between Jan 1 to March 15 – increased by 7.3 per cent from S$127.07 to S$136.37 per barrel. “This increase in fuel oil prices saw a corresponding increase in the price of natural gas which is used for power generation in Singapore,” said SP Services.

The Singapore Power subsidiary said it reviews the electricity tariffs quarterly based on guidelines set by the Energy Market Authority (EMA), the industry regulator. The latest tariffs given have been approved by the EMA.

Electricity costs previously rose by 2.3 per cent for the previous quarter of Jan 1 to March 31.

Source: Extracted from Dr Toothfully aka ‘Yao mo gao chor ah?’.

Channel NewsAsia 22 Dec 06
Recent power failure a good wake-up call not to be complacent: economist
By Johnson Choo

Source of article.

SINGAPORE : Economists have described Thursday’s power failure as a good wake-up call for Singapore.

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They noted that while taking pride in positioning itself as a business hub with an excellent infrastructure, the country must be careful not to become complacent. The last major power failure in Singapore on 29 June 2004 is estimated to have cost businesses some S$6 million in losses.

While the losses this time round are still being tallied, analysts say Thursday’s outage could put a dampener on Singapore’s reputation as an efficient base for regional operational headquarters.

Associate Professor Annie Koh, Dean, Executive Education, SMU, said, “It’s a good wake up call. I’m glad it (was) in pockets of residential areas and not so much where the whole financial centre is..But I think we have to recognise that if we keep telling people that we are around, we are awake 24/7 and this is the place for you to put all your data, put your soft-skills, put your service, we better deliver on that promise.”

With domestic demand projected to grow at 4.5 percent annually, the government is taking a serious view in ensuring a sustainable and steady supply of electricity.

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Currently, about 70 percent of Singapore’s electricity is generated by natural gas, sourced from Malaysia and Indonesia. Besides relying on diesel as a backup, energy companies have been looking to diversify their fuel sources. This includes the use of liquefied natural gas.

Associate Professor Koh said, “You’ll notice that we’ve talked (about) and explored different forms of fuel like bio-fuels, anything that we can do R&D on. So if you (look) at it, it’s no longer just dependent on raw material, we are also growing the R&D to support the service side. So what you don’t see may be the manufacturing, but everything that we do is to give us that reason for existence – as a hub for trading, a hub for service support…”

The Energy Market Authority has put in place regulatory controls to improve reliability by imposing tough punitive measures for interrupted service. Experts say this will go in some way to deter complacency. – CNA/ms

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Today is 1st of April. Only for today we can go around playing pranks or practical jokes on our friends and those around us. You see only for today the license to joke whether mischievous or ill conceived no one will really take offence.

I hope the latest announcement on the latest round of electricity tariffs increase by those jokers is also an April Fool joke. I wish it to be. I am not talking nonsense even though I am no scholar nor highly educated. I based my view on this report …

Quote
“Currently, about 70 percent of Singapore’s electricity is generated by natural gas, sourced from Malaysia and Indonesia’s West Natuna and South Sumatra fields.” Unquote

Logically speaking what has the increase of oil price to do with our residential electricity costs? Even if price of oil per barrel shoots up to US$300 has got nothing to do with our home electricity supply.

I also understand – correct me if I’m wrong and I will stand corrected! – the gas from “Indonesia’s West Natuna and South Sumatra fields” is based on long term contract of 10 to 20 years with inflation or price adjustments factored in. This is to ensure our long term gas supply with no extremity or chaotic price fluctuations. This is my understanding.

Unless someone is lying. If the above report quoted is true then can someone enlighten me on why our electricity generated from gas has to peg with oil prices? It is logic defying!

Now that our energy market is outsourced and privatized – it seems that everything in the civil service and statutory boards are outsourced and privatized nowadays – is it a case of raking in more profits or revenue at our expense? For every foreseeable reason be it oil price increase which has nothing to do with gas generated electricity or “high operating costs” etc, the easy way is just jack up the prices and pass it to end users. Do we have a choice? We are at their mercy. We are helpless.

According to the the graph above the prices of gas in fact are going down! Gas prices at all time low. And if our household electricity is generated by gas it really challenges my mentality to make sense out of this fiasco. Is the quoted CNA report a lie? Or is it just an April Fool joke.

Pls explain to me what is going on here other than keep asking me to pay for something which I do not understand at all. Like I say I stand corrected if I’m wrong. I apologize first if I wrongly accused anyone becuz like I said earlier it really challenged my mentality to understand this tariffs issue.

I am not very educated you know. I am just a simple train driver trying to eke out an honest living making ends meet coping with price increases in everything and everywhere. It gets me freightened whenever I read the news. Price increases with stagnant pay has become part of the landscape in our “new normal!”

Hopefully it’s just another April Fool joke and we will just forget about it. Today is April Fool so the license to joke is there for us to use it. Tomorrow we will know if it’s a joke and we will have to take it seriously when that fact sinks in.

PS: The current CEO and President of Senoko Power is a foreign talent. The previous also the same. Thanks to them for running our power supply efficiently.

Source

Brendan Wauters is President & CEO Senoko
Brendan Wauters joined Senoko in January 2009. Previously, Brendan had been based for 7 years in the Middle East/Asia/Africa headquarters of GDF Suez Energy International in Bangkok, first in the capacity of CFO for the region, and thereafter as Executive Vice President Strategy. Prior to moving to Asia, Brendan had worked in Belgium and in South Africa, in M&A/financial advisory, consultancy and auditing positions. He has an MBA, and a Commercial Engineering degree, from the University of Brussels. He currently also serves as a non-executive director of Glow Energy in Thailand.

Source

Roy Adair is the President & CEO of Senoko Power which is the largest electricity generator and retailer in the Singapore Electricity Market. Senoko Power has a licensed capacity of 3,300MW. It is the largest electricity generation and retail company in Singapore meeting approximately one-third of the nation’s electricity needs.

The Company is focused on supplying competitively-priced electricity in an environmentally-friendly manner. Our recent investment in 1,095 MW of combined cycle generation capability has seen the Company reduce carbon emissions by 2.5 million tonnes per annum. Senoko Power is a genuine triple bottomline power company whose approach to sustainability has been recognised by the prestigious Singapore Green Plan 2012 Award.

Roy joined Senoko Power with extensive experience of the UK and Australian electricity markets and worldwide experience of the utilities industry. Roy also has a passionate interest in the development of efficient and transparent electricity markets.

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About Gintai_昇泰

I'm a Chinese Singaporean living in the Eastern part of SG. I tweet on current affairs & inspirational quotes. I blog on issues or events if they interest me. I also share some of the interesting jokes, stories or anecdotes from my friends or observations on my blog. Thanks for visiting my blog.
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5 Responses to April Fool Joke: Electricity Tariffs Increase?

  1. APRIL FOOL JOKE, but the joke is on you all.
    Singapore has no power station, what it had, had been sold on September 5, 2008, Temasek Holdings sold Senoko Power to Lion Power Holdings for S$3.65 billion. Lion Power is owned by a consortium led by Japan’s Marubeni Corporation. This power station uses gas from Trganu since 1992. Based on a mutual agreement between Malaysia and Singapore on electricity, the plant is linked by a submarine cable to the Sultan Iskandar Power Station in Pasir Gudang, Johor. In the event of a power outage in Peninsular Malaysia, the plant would supply electricity to the Johor plant. Likewise, if there is a power outage in Singapore, the Johor plant would supply electricity to Senoko. It was built at a cost of $1.2 billion.

    PowerSeraya sells electricity to customers through its retail arm, Seraya Energy, and manages fuel purchases through its physical oil trading arm, PetroSeraya. Its operations are supported by its corporate office located at HarbourFront. PowerSeraya was spun off from Singapore Power to become a Temasek Holdings-linked company in 2001. On 6 March 2009, the company was divested from Temasek Holdings to become a wholly owned subsidiary of YTL Power International Berhad. YTL Group strategy of acquiring valuable assets at attractive or distressed price had generated excellent returns for shareholders, successfully contributing to an annual average compounded growth rate of 55% over the last 15 years. Over the last decade has seen the group’s portfolio of business grown tremendously from a small construction firm into a sprawling business empire involved in power, utilities, cement, construction, real estate, information technology and leisure spanning across Asia-Pacific and Europe. In December 2008, YTL Power International Bhd announced that it will pay S$3.6 bil cash and take on a debt of $201 million for PowerSeraya Ltd. Singapore’s power stations were built over the decades with taxpayers’ money. PowerSeraya was privatised and sold to Malaysia’s YTL Power. With an annual revenue of about S$4.8 billion (FY09/10)

    In March 2008, the TUAS POWER STATION was acquired by SinoSing Power Pte. Ltd, a wholly owned subsidiary of energy conglomerate China Huaneng Group(CHNG), from Temasek Holdings for S$4.235 billion.

    According to EMA’s [Energy market Authority] numbers, Singapore’s total power generation capacity is about 9,800 MW, while the peak demand is around 6,500 MW. Even if the money made from YTL was not filtered down to the public, you can see there’s lots of leeway to reduce electricity tariff. Unless EMA thinks Singaporeans are too daft to understand the economics of supply and demand.

    Comment by Alwi

  2. Sgcynic says:

    How many countries in the world would sell off strategic assets like power stations to foreign ownership? Heck, if it becomes costly to maintain, let’s sell off our reservoirs too.

    • Everything which can sell or outsource shall be done. That is the way things are done here! They sell and buy. They trade stocks like chips in the stock market just like us going to the casinos to gamble! Welfare or benefits to the end users or staff are thrown out of the window long ago.

  3. jax says:

    If they become too costly to maintain, let’s sell off our reservoirs too — excellent suggestion! We should also think about selling off the Spore govt, as that is rather costly to maintain. Think how much this country’s reserves would be boosted by such a sale. And if we do, instead of just looking at all that lovely money piling up in TH and GIC, while we scramble around trying to pay our bills for basics and necessities, maybe some of that cash from those huge money reservoirs will be piped to us.

    • Jax,
      Thks for your comment. Totally agree with you. Pls read

      http://gintai.wordpress.com/2012/03/14/singapore-population-in-brief/

      We have slightly more than 5 million on this piece of 710 sq m rock. Citizens about 3.5 million. One third are non citizens meaning foreigners. If you discount the instant citizens just like those instant trees where they can be uprooted anytime by heavy rainstorms, it’s actually around 3 million originals. Our total reserves officially are more than 500 billion and that made us 3rd richest in the world. But do the commoners benefit? They still got to work very long hrs and pay thru their nose or arse the moment they wake up and leave their pigeon cubicles.
      Since everything in this country is based on bottom line in terms of revenues, profits and more profits without genuine concern for the welfare of citizens why not make this place an international place?
      Let the UN administer and run this place along corporate governance since this govt is no diff from an international corporation? Memberships to Singapore Inc could then be sold and traded in the international market. Only those got the money and means could buy into Singapore Inc run by the world’s most talented adminstrators with shares n profit sharing basis based on the size or growth of GDP?
      We need to think out of the box and create a paradise only for those super rich and famous viz a viz Bahamas islands. After all it’s happening here already. Only those super rich could afford the expensive condos n flats, use our highways with COEs hitting nearly $100K and hospital costs wiping out your CPF etc etc
      Your birthright is not relevant here. It’s not part of the equation. Core shared values, loyalty to nation, sense of belonging all been diluted long ago when wave and wave of instant migrants descended on this small piece of rock.
      On yes NS also got to outsource to mercenaries. Those professionals could do a better job than our citizens.
      Only smell of money is sweet and delicious here. That’s our culture. The rest stinks! Only money is everything here. No money no talk. If you got no money you are a burden to the state. Our system, foundation, values and mindset are all built on GDP and money.
      No other country in the world has gone to such nivarna state of money and profits! We are special. Soon we shall be the No: 1 (now is 3rd) even though we have the largest income inequality and the worst off in the league of developed countries.

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