Can someone explain why?

[hairylee]

PAP has already bought the gas for $9 billion for 20yrs @ 350 million standard cubic feet per day in 2003 but is now charging us market rate.

http://findarticles.com/p/articles/mi_m0WDP/is_2003_August_11/ai_106468029/

To be exact market rate of oil.

 

[Thick Face Black Heart]

Yes, positive correlation, but not as strong as most people have been led to believe.

The impt issue of course is that the consumer has been unfairly made to pay the price because of govt practices.

1) All energy supplies have a positive correlation to crude oil prices. More so those those fuels that are ready subsititute to crude oil.

2) Negotiated prices for long term contract typically are indexed to trading crude oil prices once the deviations are significant.

3) Supply of utilities are a monoploy and the govt has always put in a large surcharge figure for utltities due to lack of natural resources, the need to purchase from the open market and to control wastage. For decades, surpluses from utilities have formed the largest contribution to the govt coffers other than taxes. It has been too dependent on it that it cannot forgo the revenue.

4) We thus end up paying much more than most and feel the impact of a surge in oil prices. This is despite natural gas being cheaper than oil.

 

[rodent2005]

sorry i need to ask a question before attempting to answer.
where u got the info that 80% is generated by gas?

Confirmed lah. Newspapers also reported before.

Gas pumped in from South Natuna and Sumatra on a daily basis.

 

[rodent2005]

Why don't the PAP give electricity to Singaporeans free and go earn trillions investing overseas since it is so easy like you say? Oh, the PAP is in the habit of losing billions, isn't it? But since it is so easy like you say, why is the PAP consistently losing billions? Something is wrong with the PAP?

 

[rodent2005]

To be exact market rate of oil.

To be lagi exact, Singapore is paying a premium over High Sulphur Fuel Oil which is traded in Singapore for its gas from Indonesia.

 

[scroobal]

PUB was the largest contributer to the consolidated fund of the Govt for years and these are the pure profits from Govt agencies. Ms Ho is now enjoying the profits which indirectly fell on her lap.

As I said, its a revenue stream that they cannot do without.

Yes, positive correlation, but not as strong as most people have been led to believe.

The impt issue of course is that the consumer has been unfairly made to pay the price because of govt practices.

 

[kukubird58]

thks...i remember there was some published formula in determining the tariff.
whether we agree with it is another thing.
i will try to find it.

as promised, pse refer to the link to see how the tariff is derived.
http://www.spservices.com.sg/news/Press release_29Dec10.pdf

 

[KuanTi01]

2 words come to mind! Profiteering and racketeering.

 

[garlic]

another few words come to mind when tariffs increase:

"knn" and "tulan"

 

[moolightaffairs]

i think a few of the old power stations are still using oil to generate electricity. one of them is senoko. spservices is trying to sell away those old assets for example those old power stations like senoko. but not many buyers interested because too old and due for overhaul, some even up to 30yrs of age! maybe they are doing all these to create an impression that sg is a very profitable energy market? in order to lure those buyers to buy those long overdue assets=old power stations?

 

[annexa]

Please lah!

Did you factor in the infrastructure cost (power plant, lines, software) when you moan about the electric tariffs???? How about storing, shipping and transportation????

Cheebye peasant. If you cannot afford the electricity, sell away your fridge, TV, air con and live on what you can afford.

Infrastructure was paid for by taxpayers.
The last round when oil prices came down, the electricity prices went up with a lame "due to other costs". Ya, CEO pay increase?