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.
Channel NewsAsia 22 Dec 06
Recent power failure a good wake-up call not to be complacent: economist
By Johnson Choo
SINGAPORE : Economists have described Thursday’s power failure as a good wake-up call for Singapore.
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.
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
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 …
“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.
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.
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.