Electricity tariffs to go up 4.3%

[TwitSeng]

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1192183/1/.html

SINGAPORE: Electricity tariffs will increase by 4.3 per cent for the next three months beginning this Sunday.

SP Services said this is due to higher fuel prices, which have resulted in higher power generation costs.

Average fuel oil price over January, February and March was up 7.3 per cent, increasing from S$127.07 to S$136.37 per barrel.

The hike in fuel oil prices saw a corresponding increase in the price of natural gas which is used for power generation in Singapore.

SP Services said the higher electricity tariffs will see average monthly electricity bills for those living in four-room HDB flats to go up by S$4.18.

- CNA/wm

 

[Bigfuck]

Singapore uses gas on a long term contract based on fixed price. So speculation has nothing to do with electricity prices in general. remember some company lost big money for their operations? They act smart and speculate when they should be focusing on core business

 

[Ramseth]

Singapore uses gas on a long term contract based on fixed price. So speculation has nothing to do with electricity prices in general. remember some company lost big money for their operations? They act smart and speculate when they should be focusing on core business

It's called futures contract. Lock-in a price 3 to 9 months forward and pay that price when the time comes. They lost again and pass the bill to us. If they win, they put it on P&L account to claim credit, salary increases and bonuses. Simple example, let's say oil is now US$100 per barrel. They book it at US$110 for delivery 3 months later. If 3 months later, oil price doesn't rise, they'd lose US$10 per barrel, they bill the loss on us and blame it on international market situation. If it rises to US$120, they save US$10 per barrel and write it as profit from their great foresight. We won't recieve a discount on our bills, except perhaps when it happens nearing election time.

 

[Bigfuck]

It's called futures contract. Lock-in a price 3 to 9 months forward and pay that price when the time comes. They lost again and pass the bill to us. If they win, they put it on P&L account to claim credit, salary increases and bonuses. Simple example, let's say oil is now US$100 per barrel. They book it at US$110 for delivery 3 months later. If 3 months later, oil price doesn't rise, they'd lose US$10 per barrel, they bill the loss on us and blame it on international market situation. If it rises to US$120, they save US$10 per barrel and write it as profit from their great foresight. We won't recieve a discount on our bills, except perhaps when it happens nearing election time.

I am not talking about futures for the former. For the latter, that company is beyond help.

 

[coolguy]

In short, ramseth is saying sinkies will get the short end of the stick.
It has always been the case. Why I am not surprised?

 

[glockman]

Bloody power bill is always going up and up. Already changed to mostly LED lights in my house, reduced usage of aircon, undersize pumps in my two massive fish tanks, shutdown one of my two fridges. Its never ending, greed is a hungry monster. And theres no way here to get off the power grid.

 

[Varuna]

Bloody power bill is always going up and up. Already changed to mostly LED lights in my house, reduced usage of aircon, undersize pumps in my two massive fish tanks, shutdown one of my two fridges. Its never ending, greed is a hungry monster. And theres no way here to get off the power grid.

Haha...me too. Already trying hard to reduce electricity usage, threw away the 4 ft fish tank, cut down air-con usage by a lot and always check and switch off lights if not in use, and long time switched to energy saving bulbs. They just would not let our bills go down. The only way to fill up the gap from reduced usage by households is to jack up the price every now and then so that they can still collect enough money to feed their bluddy greed.

 

[glockman]

Haha...me too. Already trying hard to reduce electricity usage, threw away the 4 ft fish tank, cut down air-con usage by a lot and always check and switch off lights if not in use, and long time switched to energy saving bulbs. They just would not let our bills go down. The only way to fill up the gap from reduced usage by households is to jack up the price every now and then so that they can still collect enough money to feed their bluddy greed.

yeah lor, never ending. With all our usage reduction, still not enough. In near future, we may need to use batt powered torchlights or light candles in the house at night. KNN all those people.

 

[zhihau]

SINGAPORE: Electricity tariffs will increase by 4.3 per cent for the next three months beginning this Sunday.

are we able to look at Tesla's idea on free energy again? :o:o:o

 

[Unrepented]

1. All these restructured "privatised" companies are poa chiak one.........stupid idiot 60.1%

2. And Uncle Ram,

Even if they make a gain on the hedge, how sure are we that they don't increase the prices in tandem with the rise in market price index?

Even if they do, how do they decide which gain from which hedge to pass to consumers? Was there ever a price contract between sinkie using electricity and these power supply companies? Hedges are all overlapping, imo.

It's called futures contract. Lock-in a price 3 to 9 months forward and pay that price when the time comes. They lost again and pass the bill to us. If they win, they put it on P&L account to claim credit, salary increases and bonuses. Simple example, let's say oil is now US$100 per barrel. They book it at US$110 for delivery 3 months later. If 3 months later, oil price doesn't rise, they'd lose US$10 per barrel, they bill the loss on us and blame it on international market situation. If it rises to US$120, they save US$10 per barrel and write it as profit from their great foresight. We won't recieve a discount on our bills, except perhaps when it happens nearing election time.

 

[zeebjii]

Singapore uses gas on a long term contract based on fixed price. So speculation has nothing to do with electricity prices in general. remember some company lost big money for their operations? They act smart and speculate when they should be focusing on core business

Thanks for your reminder. We signed longterm, multi-year contract with indonesia to supply us with nautural gas at fxed price. It was reported in the papers a few years ago.

They're trying to con us, just like they did with water from malaysia.

 

[saratogas]

Gahment want to increase prices... Just inform only! Retailers increase prices... kanna complain... Very difficult to do business.

 

[Leepotism]

All these years, it's up and up and away. Every three months, they screw their citizens with the increase. As someone had said, the 60% really love it.

 

[Kinana]

Singapore uses gas on a long term contract based on fixed price. So speculation has nothing to do with electricity prices in general. remember some company lost big money for their operations? They act smart and speculate when they should be focusing on core business

Not true. You are just guessing.
The prices are not fixed but based on a moving average. There are no fixed price contracts for fossil feuls in the market.

Anyway, if you insist that it is a fixed price, please show us your evidence.

 

[Zombie]

Singapore uses gas on a long term contract based on fixed price.

It is fixed price, marked to crude oil price that was last traded on the day(s) that the contract agreed and later signed. The "mark to crude oil" part is sometimes not mentioned in the news.

 

[Kinana]

Which means it is not fixed la. It moves with market prices. Don't BS here.

 

[Zombie]

Which means it is not fixed la. It moves with market prices. Don't BS here.

You are really too stupid to understand the difference between gas and oil.

The gas price is fixed as it is termed in the Indonesian gas contract meaning the price is fixed no matter at what price the gas is selling in subsequent contracts. It is plain misleading to argue against this term by saying that it moves with market price and there is a moving average to base on.

Indonesia would want to protect its alternate energy source, which is why the gas contract is linked or marked to crude oil prices, as mentioned in my previous post. They are two different products. If you really dun understand what i said earlier, go ask your Econ teacher.

Nevertheless, fixed price marked to oil price, is the proper way to call it. Simply calling it fixed price is not accurate either.

 

[Bigfuck]

You are really too stupid to understand the difference between gas and oil.

The gas price is fixed as it is termed in the Indonesian gas contract meaning the price is fixed no matter at what price the gas is selling in subsequent contracts. It is plain misleading to argue against this term by saying that it moves with market price and there is a moving average to base on.


Indonesia would want to protect its alternate energy source, which is why the gas contract is linked or marked to crude oil prices, as mentioned in my previous post. They are two different products. If you really dun understand what i said earlier, go ask your Econ teacher.

Nevertheless, fixed price marked to oil price, is the proper way to call it. Simply calling it fixed price is not accurate either.

True. There is more gas than oil in the world by "verified" reserves. Gas is cheaper than oil which is why LNG CHP is popular.

 

[Zombie]

Gas is cheaper than oil...

Gas is dirt cheap, but not here mainly because of limited sellers in the competition, vis-a-vis buyers.


http://www.natgas.info/html/gascontracts.html

Group 2:

The second group of gas markets includes the situation in continental Europe, and to a lessor extent, in south-east Asia. In these regions, there is a limited, but growing, gas grid. There are some gas storage facilities, and developing gas market. However, most gas is priced in relation to other fuels, usually crude oil or oil products. Thus, gas prices would be quoted by a formula which ‘indexes’ or is derived from oil prices. The net effect is that gas is usually, though not always, sold at a discount – on an equivalent energy basis – to oil and oil products. The reasons for this are largely historical – gas production and consumption began after oil markets were established and by linking the markets, gas producers could convince producers to switch between the fuels – and also because oil markets are global and transparent, gas prices could be derived from traded oil-price financial instruments. When oil prices rise, oil-linked gas prices would also rise, and vice-versa.

 

[Kinana]

You are really too stupid to understand the difference between gas and oil.

Both are fossil feuls. Both generate energy and are alternatives to each other. The price of one is linked to the other whether you realise it or not.

The gas price is fixed as it is termed in the Indonesian gas contract meaning the price is fixed no matter at what price the gas is selling in subsequent contracts. It is plain misleading to argue against this term by saying that it moves with market price and there is a moving average to base on.

Nope, it was never fixed.

Indonesia would want to protect its alternate energy source, which is why the gas contract is linked or marked to crude oil prices, as mentioned in my previous post. They are two different products. If you really dun understand what i said earlier, go ask your Econ teacher.

Which means to say it is not fixed la. Don't try to BS here. There are no long term fixed priced for fossil fuels in the world.

Nevertheless, fixed price marked to oil price, is the proper way to call it. Simply calling it fixed price is not accurate either.

Thats correct, so when oil prices goes up, the gas price will go up too.
Don't BS here please.