$1 billion profit, tariffs raised 22%

**makapaaa** · 01-10-2008, 03:14 PM

Coffee Shop Talk - $1 billion profit, tariffs raised 22%

From:	spring_hope	5:46 am
To:	ALL	(1 of 2)

6643.1

SP Services has announced that it has raised electricity tariffs 21.89% from 1 Oct to 31 Dec 2008. The Online Citizen's Leong Sze Hian has pointed out that SP Services' parent company, Singapore Power Ltd, made a profit of $1.086 billion in 2007. I checked out their website and indeed this is true.
They made over $1 billion in PROFITS and they are increasing tariffs by 22%! And all this when oil prices are actually decreasing.
Of course, since it is not useful for our power companies to use the current oil prices to justify the increase, they are using the "forward fuel oil price". This is the price agreed between the buyer and the seller for delivery of the oil at a specified future date, in this case 3 months.
As with the Public Transport Council (PTC) and ministerial salaries, the Energy Market Authority (EMA) is using this ridiculous formula to justify price increases.
It's really shocking how the EMA has gone to the hilt to defend the price increases of the company they are supposed to regulate. But on closer examination, it's not all that surprising:
- Singapore Power made $1 billion in 2007, much of it from Singaporeans' electricity fees.
- SP is in turn 100% owned by Temasek Holdings (as are the two other power companies, PowerSeraya and Senoko Power).
- Temasek Holdings is owned by the Ministry of Finance.
- EMA, the energy market regulator, is a statutory board under the Ministry of Trade and Industry (as is the Competition Commission of Singapore, which is supposed to prevent cartel-like behaviour).
I think everyone is having a jolly good back scratch, except us ordinary citizens.
Something is seriously amiss when a power company can make $1 billion in profits and still raise charges by 22%. It is a classic example of the profit-driven culture that our government is run on. I really don't know how much longer Singaporeans are going to stand for this kind of nonsense.

**xebay11** · 01-10-2008, 03:20 PM

Shocking!!! How to get more citizens to know this?

**makapaaa** · 01-10-2008, 04:01 PM

Originally Posted by xebay11

Shocking!!! How to get more citizens to know this?

Through the Internet?

**xebay11** · 01-10-2008, 10:24 PM

66.6% of Singaporeans have no access to the internet.

**imperialarms** · 01-10-2008, 10:50 PM

should use 1 billion and short GE

**ahbengsong** · 01-10-2008, 10:54 PM

Originally Posted by xebay11

Shocking!!! How to get more citizens to know this?

The singapore citizens already knew the blood leeching of the pap glc..... its nothing new except that they are too fearful of the pap....

**silverspoon** · 02-10-2008, 03:39 AM

some moron on top must have screwed up badly during the oil crisis . They could have bought too much oil at the top price...now lan lan have to pay for it....

so as usual..they pass their screw up down the line to the consumer

Simple job,,,,,they screwed up....other pple suffer..they continue to collect million dollar pay cheque.....

**hemunkeong** · 02-10-2008, 08:51 AM

No point complaining, protest, feedback, meet MP also no use
We are constantly screwed by the govt. and yet 66% still vote for them
Just cannot fathomed singaporeans.

**borom** · 02-10-2008, 09:34 AM

You cannot fault them for their perfect timing-1 Oct also the day S'porean suppose to receive the 2nd part of the Growth Dividend.
Did the decision makers know about the coming rise when they announced the so called "additional benefits " at the ND Rally?

The best thing to do with such so call "handouts" is to keep them in the same account for paying all your bills-its just a matter of time before they take it back via increases in GST,public transport charges, ERP, utilities bills, school fees ect2.
Only thing is that million of dollars will be spent sending out the money and taking it back-with no benefit to the public (who also end up footing all the administrative expenses via taxes).

The main beneficiaries will be the banks who will enjoy the free float while the money is in the account.

**ksterk** · 02-10-2008, 09:48 AM

To my own understand.

Profit is bank in, n never use again till their big big share holder request(which i dun think they will ever do that)

They increase price be cos they claim that due to past 3mths the oil prices increased, so they have no choice but to increase, which i will say ok fair enough, BUT when the price come down? will the 22% stay for gd? tt is the question