ESG (Environmental, Social, & Governance) cock-ups

[LITTLEREDDOT]

Go green lah...

Centralised cooling system in Tengah runs into teething issues for first batch of residents​

The system uses chilled water to remove heat, unlike conventional air-conditioning units that are connected to outdoor compressors. ST PHOTO: SHINTARO TAY

2 of 2

Tengah is the first HDB estate to provide a centralised cooling system as an option for home owners. ST PHOTO: SHINTARO TAY

Isabelle Liew

Oct 13, 2023

SINGAPORE - The first centralised cooling system in a Housing Board estate has run into teething problems as the first batch of residents of Tengah town collect the keys to their flats.
Residents The Straits Times spoke to said the cooling system in their units was not cold enough, with some units “blowing hot air”.
Mr Dinesh Sailan, 37, who collected the keys to his four-room Build-To-Order (BTO) flat in the Plantation Grange project at the end of August, said he was initially excited about the environmentally friendly cooling system but was disappointed when he gave it a go.
“In my master bedroom, it felt like the system was blowing hot air despite being set to 16 deg C,” the compliance manager, who was among the first batch of Tengah flat owners, told ST in September.
Ms Jackline Chang, 29, also said the cooling unit in her five-room flat was not sufficiently cold at first. “After turning it on for a few hours, the house was still not cold,” said the architectural executive.
She added that it was “a bit disappointing”, having waited about four years for her BTO unit from when she booked it.
Tengah, billed as an eco-friendly and car-lite “forest” town, is the first HDB estate to provide a centralised cooling system as an option for home owners.


The system uses chilled water to remove heat, unlike conventional air-conditioning units that are connected to outdoor compressors and use refrigerants to cool down flats.
Centralised chillers on the blocks’ rooftops produce chilled water that is piped directly into homes.
This cooling alternative offers up to 17 per cent savings in “life-cycle costs” – including those for maintenance – compared with conventional systems, said a spokesman for utilities firm SP Group, which manages the system.

Life-cycle cost savings are calculated based on a 20-year period.
Manufacturer Daikin is responsible for installing the units in the flats and resolving issues.
As at Aug 23, nine in 10 – or more than 10,600 – residents of Tengah have opted for the system.
In response to ST’s queries, the SP spokesman said last Saturday that HDB had an accelerated construction schedule to hand over blocks to residents following delays due to Covid-19.
The company therefore needed more time to carry out checks to make sure the cooling system runs smoothly.
He said SP would conduct service checks for residents who have already collected their keys, and carry out testing and commissioning for flats due to be handed over in the coming months.
“This process may take up to four weeks, and during this time, residents may experience some intermittency in cooling supply,” he said.
As at Oct 6, the majority of the feedback SP received has been resolved, he added.

Ms Jackline Chang with her husband, Mr Andy Wong. Ms Chang said the cooling unit in her five-room flat was not sufficiently cold at first. ST PHOTO: SHINTARO TAY
Ms Chang, the architectural executive, said that during an inspection by SP, its crew found that the valve outside her unit was not opened fully. When it was rectified, the system started pumping out cool air.
Mr Dinesh, the compliance manager, said the issues he faced with the system in his flat have also been resolved after two visits from SP.
Other issues residents raised include how the cooling system’s trunking looks and what they described as “disruptive” structural beams in their flats.
Operations manager Jason Ong, 40, said he did not expect the structural beam in his living room, which runs parallel to the household shelter, to look “so odd”.
The beam has a notch in front of the shelter’s ventilation sleeve so that the sleeve can open or close.
“There’s also a beam in the middle of the wardrobe space in my master bedroom, which is quite disruptive.”
He has consulted an interior designer to search for a way to work around the beams and conceal the trunking, but has yet to find a solution.
An HDB spokeswoman said Plantation Grange and Plantation Acres are among the first HDB projects to be built using the prefabricated pre-finished volumetric construction (PPVC) method, which is a Lego-like stacking and assembling process that speeds up construction.
“Structural beams are required for each PPVC module for handling and transportation, and to connect with other modules during installation.”
As a result, all four- and five-room, as well as three-generation flats, in Plantation Grange have a beam in the main bedroom.
Furthermore, in all four-room and three-generation flats, the notch in the beams that run parallel to household shelters exists because of a Singapore Civil Defence Force regulation that enough space, of at least 500mm, is needed in front of the ventilation sleeve.
“The notch is not a defect, and it does not affect the structural integrity of the flat,” said the HDB spokeswoman.

Residents said the cooling system in their units was not cold enough, with some units “blowing hot air”. ST PHOTO: SHINTARO TAY
HDB has offered residents of these flats the option of installing a removable board to cover the notch, free of charge. About 30 residents have requested this so far, the spokeswoman said.
As at Sept 26, the keys for about 295, or 12.6 per cent, of the 2,333 units in Plantation Acres and Plantation Grange have been collected.
ST reported earlier that Tengah residents had also highlighted the inaccessibility of public transport in the new town.
Ms Chang, who has a three-month-old daughter, said she hopes to move into her new home by the end of the year but is concerned about dust from neighbouring construction sites.
“It’s a blessing that my husband and I managed to get a unit in this up-and-coming estate. I just hoped for better execution, especially from the cooling system.”
With regard to the dust, HDB said its contractors have raised the frequency of road cleaning to twice weekly.
“We have also instructed all HDB construction worksites in Tengah to step up their housekeeping measures to ensure that debris and dust from their construction activities are kept within their worksites as far as possible.”

 

[50000]

HDB Greenwashing

 

[k1976]

No worries,Good Hands will fix all their problem, have patience lah

 

[Leongsam]

I'm sure things will be fixed to the satisfaction of all very soon.

 

[LITTLEREDDOT]

Forum: Give incentives for households to switch to solar energy​

Oct 19, 2023

There are currently no incentives given to residential households to invest in and use solar energy. The transition to solar power is administered by SP Group, whose interest might not be aligned to households.
SP takes many weeks to approve each solar system installed before the household can use solar power. In the meantime, all the solar power is lost while waiting for SP’s approval.
SP buys unused solar power from households at 20 cents per kWh and resells it immediately for 27.74 cents per kWh.
The Renewable Energy Certificate (REC) is set at a minimum 10,000kWh of solar power resold into its grid per year before a household can get an REC.
Each REC is worth around $30. The minimum REC per household is set so high that most households with solar power cannot get the REC.
The Government must encourage households that are able to transition to solar energy to do so. It must put in place rules to prevent profit-driven entities from benefiting from those who make the effort to transition to clean energy.
Since the Government does not provide any form of incentive for this transition, it should at the minimum make SP charge households net energy used from the grid instead of the current gross charging system.

Approval for turning on of a solar energy system must be done within five working days. If SP is unable to meet this service standard, then some penalties should be imposed.
We must make maximum effort to have solar power generated within Singapore, as buying renewable energy from other countries comes with a host of issues and can become problematic, like the experience with our water supply.

Christopher Leong

 

[laksaboy]

A reminder of what ESG is all about.

Temasek and BlackRock Launch Decarbonization Investment Partnership​

13 APR 2021
https://www.temasek.com.sg/en/news-...-blackrock-launch-decarbonization-partnership


The 17 SDGs:

 

[congo9]

The technology for central cooling is not ready yet. If the technics and difficulty had been solved, we won't have such issues. We have not perfected the technics yet.

Now can the resident have the option of turning off this system as install their own Aircon ?

 

[laksaboy]

The technology for central cooling is not ready yet. If the technics and difficulty had been solved, we won't have such issues. We have not perfected the technics yet.

Now can the resident have the option of turning off this system as install their own Aircon ?

It doesn't matter. It's done to fulfill a political and global agenda, and they chose that shithole Tengah as a base for their experiment.

And they sure know how to talk a good game. I'm sure many got psycho'ed into choosing Tengah at the HDB Hub.

https://www.hdb.gov.sg/about-us/history/hdb-towns-your-home/tengah

 

[congo9]

Now the air-con unit can't work.
Now we know that Singaporean is Herded into a slaughter house which ever direction they turn to.

Buy a car, you slaughtered by COE.
Buy a HDB , slaughtered by sky high pricing. Plus your house lease eats into your earning rapidly.
Buy a meal to eat, slaughtered by sky high rental and Jiu hu Kia.

 

[k1976]

Now the air-con unit can't work.
Now we know that Singaporean is Herded into a slaughter house which ever direction they turn to.

Buy a car, you slaughtered by COE.
Buy a HDB , slaughtered by sky high pricing. Plus your house lease eats into your earning rapidly.
Buy a meal to eat, slaughtered by sky high rental and Jiu hu Kia.

We got not-so-invisible hands to provide good guidance for little sheep....has been like that since Day 1....keep calm Keep huat la huat la


1983 document for your reference
https://www.jstor.org/stable/2644389


2000 SMU document
https://www.google.com/url?sa=t&sou...ChAWegQIDxAB&usg=AOvVaw0mx9en0GTIi_9GFRm0Nktp

 

[LITTLEREDDOT]

Retailers charging more for plastic bags

Oct 27, 2023

Some retailers have started charging for plastic bags, taking advantage of the recent mandatory 5-cent charge on plastic bags at supermarkets. These retailers charge 10 to 50 cents a plastic bag.

Why are these retailers wasting resources to print fancy bags with their company logo and passing the costs to consumers? It seems more like a business decision under the guise of saving the environment.

If these retailers were genuine about saving the environment, they should channel the proceeds from charging customers for the bags to environmental causes.

Goh Ee Ca

 

[mojito]

Of course. ESG is full of hot air u expect it to cool ur house?

 

[LITTLEREDDOT]

SP Group to cut usage rate for centralised cooling system in Tengah after residents’ outcry​

The system uses chilled water to remove heat, unlike conventional air-conditioning units that are connected to outdoor compressors. ST PHOTO: SHINTARO TAY

Isabelle Liew

NOV 7, 2023

SINGAPORE – Utilities firm SP Group, which manages the centralised cooling system in Tengah town, will waive usage charges for the system until Dec 31 and lower the rate from Jan 1 in response to an outcry from residents.
A petition signed by more than 150 Tengah residents was sent to Prime Minister Lee Hsien Loong on Oct 27. In the e-mail seen by The Straits Times, the residents raised concerns about “excessive charges” the system incurs, as well as the fees imposed on those who wish to cancel their contract.
SP Group said on Monday that it is aware of the feedback from residents and has been working with them to address their concerns.
Tengah, an eco-friendly and car-lite “forest” town, is the first Housing Board estate to provide a centralised cooling system as an option for home owners.
The system uses chilled water to remove heat, unlike conventional air-conditioning units that are connected to outdoor compressors and use refrigerants to cool down flats. Centralised chillers on the blocks’ rooftops produce chilled water that is piped directly into homes.
Residents are billed for the chilled water and electricity usage of the cooling system each month.
One of the issues the residents highlighted was that the chilled water usage rate of 20.38 cents per kilowatt-hour refrigeration (kWrh) for the period of October to December was higher than expected. They requested that the rate be lowered.

SP replied that the usage rate for the cooling system is reviewed and adjusted quarterly. In 2020, the rate was estimated to be nine cents per kWrh, based on the electricity tariff then, planned costs for the project and cooling energy consumption.
It said the rate went up as electricity costs surged nearly 50 per cent from 2020 to 2023, while the cost of the project rose by 20 per cent due to the Covid-19 pandemic.
Residents were also unhappy that SP had earlier adjusted the cooling system’s life-cycle cost savings from 30 per cent to 17 per cent on the myTengah website, which it runs.

Life-cycle cost savings are calculated based on a 20-year period.
SP said: “The increase in the usage charge rate (in the fourth quarter of 2023) will have some impact on the initial estimate of up to 30 per cent savings of the centralised cooling system.”
As a gesture of goodwill, SP said it will waive all usage charges for Tengah residents until Dec 31.
It will also adjust the usage rate to 13.2 cents per kWrh (before goods and services tax) from Jan 1. This is because some residents have already moved into their Tengah flats, and SP said it was able to review its rate with the usage data.
“With the adjustment... customers will be able to enjoy life-cycle savings of up to 30 per cent versus a conventional split unit air-conditioning over a 20-year period,” SP added.

The residents also asked for more clarity on the cancellation fee for those who wish to opt out of the centralised cooling system, and requested that the fee be waived entirely.
SP said that after residents sign the agreement to install the fan coil unit, pipes and cables in their flat, they can end the agreement without any penalty within 30 days.
Should residents wish to cancel their contract more than 30 days after signing the installation agreement, SP will collect 35 per cent of the installation charge from them.
The installation charge for four fan coil units, for instance, is $3,992.
But if the system has been installed, residents would have to pay the full installation fee if they want to cancel the agreement.
“Nonetheless, taking into account feedback from this early batch of customers and the initial issues encountered, as a further gesture of goodwill, SP will reduce the payment to be collected by 50 per cent in the event of cancellation,” SP said.

Tengah, an eco-friendly and car-lite “forest” town, is the first HDB estate to provide a centralised cooling system as an option for home owners. ST PHOTO: SHINTARO TAY
One of the Tengah residents who signed the petition and wanted to be known only as Mr Lin said that the adjusted usage rate of 13.2 cents per kWrh was welcome.
However, the Plantation Acres resident who will be collecting the keys to his five-room flat next week said he is still thinking of ending his contract.
The 38-year-old executive said: “For all we know, this could be the best rate we’ll ever get. If SP can adjust the rate so drastically, how do we know that they won’t adjust it again?”
ST reported earlier that the centralised cooling system in Tengah had run into teething problems with the first batch of residents, with some saying the system in their units was not cold enough.
On Monday, SP said that 470 out of 536 reported defects have been resolved by Oct 27. It added that it is working to rectify the remaining 66 defects as soon as possible.

An HDB spokeswoman said the public housing authority is aware of the feedback from some Tengah residents.
“HDB will continue to monitor the feedback on the centralised cooling system and support SP Group to ensure that the roll-out of the system in Tengah proceeds as smoothly as possible,” she added.
As at Monday, the keys to about 1,109 of the 2,333 units in Plantation Acres and Plantation Grange – the first two projects in Tengah – have been collected.
SP said it will work to raise awareness among residents about the cooling system and address teething issues.
“We apologise that our service delivery and communications with customers have fallen short of expectations,” it added.

 

[k1976]

Huat Big Big hah

 

[k1976]

Omg

 

[LITTLEREDDOT]

Forum: Over-reliance on LNG has environmental consequences​

NOV 11, 2023

I was surprised to learn that about 95 per cent of Singapore’s electricity is generated using natural gas (Second LNG terminal planned to boost supplies that can meet Singapore’s power needs in a pinch, Oct 24).
With the second terminal, it is possible to meet Singapore’s power needs entirely with liquefied natural gas (LNG).
With increasing geopolitical tensions, it is important for Singapore to have enough of its own energy sources. But this should not simply mean increasing our reliance on the same type of energy resource.
While natural gas is often regarded as a cleaner fossil fuel, it is still a non-renewable source of energy. LNG is mainly made up of methane, a greenhouse gas that is 30 times more toxic than carbon dioxide in the long term. Methane leaks into the atmosphere during the production of LNG and in the logistics chain.
Instead of further relying on LNG, we should invest in and research renewable energy solutions more. In Singapore, the Housing Board has installed solar panels on over 3,300 public housing rooftops. But we are still behind countries like Israel and Germany in energy storage solutions, a key component for renewable energy reliability.
Singapore’s move towards LNG is a pragmatic approach towards its energy requirements, but that is only a temporary solution when we consider the broader environmental implications.

Tan Guan Quan

 

[LITTLEREDDOT]

Forum: Fireworks come at a cost to environment​

NOV 23, 2023

I was disappointed to read the report, “Ring in 2024 at Marina Bay with special fireworks, light projections“ (Nov 20), at a time when Singapore is striving to be a cleaner, more eco-friendly country (Singapore aiming to have emissions reach net zero by 2050, Sept 6).
Such fireworks displays may not be in line with the goals set by the Government to reduce environmental pollution and promote sustainability.
Over the years, efforts to do more for the environment, such as planting more trees, waste reduction, embracing green energy and choosing eco-friendly transportation options, have been encouraged.
However, the potential environmental impact of fireworks is at odds with these efforts.
Fireworks are visually appealing, but they come at a cost as they release contaminants, such as carbon dioxide, carbon monoxide, nitrogen and sulphur dioxide, that affect air quality and the environment.
There is also the debris, like plastic, paper, metals and chemicals, left behind after the fireworks displays.
Singapore is committed to significant pollution reduction by 2030 and aims for complete net-zero emission by 2050.

To stay true to these goals, we need to rethink the inclusion of fireworks in celebrations.

Chong Ling Eng

 

[LITTLEREDDOT]

Household electricity bills set to rise as carbon taxes to increase in 2024​

On average, the higher carbon tax could lead to an increase of $4 in monthly household utility bills for a four-room Housing Board flat. ST PHOTO: CHONG JUN LIANG
Lynda Hong
Senior Environment Correspondent

DEC 9, 2023

SINGAPORE – Electricity prices for households are poised to rise in 2024 as power generation companies will face a higher tax for their carbon emissions.
On average, the higher carbon tax could lead to an increase of $4 in monthly household utility bills for a four-room Housing Board flat, according to a forecast from the National Climate Change Secretariat (NCCS). This is assuming the full cost of the carbon tax is passed on to consumers.
Electricity retailers have not yet disclosed details of the price changes.
In 2024, Singapore’s carbon tax will rise to $25 per tonne of emissions, up from $5 per tonne now. This will be raised to $45 per tonne of emissions in 2026, and eventually to between $50 and $80 per tonne of emissions by 2030.
Introduced in 2019, the carbon tax was set at $5 per tonne for five years till 2023 to provide a transition period for facilities that directly emit at least 25,000 tonnes of emissions annually.
NCCS calculated that every increase of $5 in carbon tax could cause household electricity tariffs to rise by a corresponding 1 per cent. This means electricity bills could go up by about 4 per cent in 2024.
Households here can either choose a price plan from an electricity retailer or buy power from SP Group at the regulated tariff set by the Energy Market Authority.

Electricity retailers that spoke to The Straits Times were tight-lipped about the exact rate increase of electricity prices.
Leading electricity retailer Geneco, which has a market share of nearly 27 per cent, said: “Tariffs will be adjusted according to any development to carbon tax.”
Senoko Energy said: “While the carbon tax component is likely to make an impact on electricity prices, it could also encourage businesses and households to re-evaluate their electricity consumption in efforts to lower their energy usage and wastage.”

Apart from carbon tax, other significant costs that determine the pricing of electricity plans include the prevailing fuel price, said PacificLight.
The power-generation company and electricity retailer is developing a project on Pulau Bulan in Indonesia to import electricity from solar power.
It has also spent more than $30 million to improve efficiencies at its Jurong Island plant, including upgrading its turbine, which would reduce an overall 40,000 tonnes of emissions annually when the improvements are completed in 2024.
Increasing the energy efficiency of power plants is one strategy to reduce the impact of carbon tax on retailers that are also generation companies.
Tuas Power’s chief operating officer Michael Wong told ST that its power station is being upgraded to improve efficiency, to reduce the gas used and amount of emissions per megawatt hour of energy generated.
Tuas Power is also moving towards using lower carbon-emission sources of energy such as solar and biomass to generate electricity, added Mr Wong.

Sembcorp Power did not respond to ST’s queries, while Keppel Electric declined to comment.
Apart from power stations, the water sector will also be impacted by the higher carbon tax from 2024.
Water in Singapore requires electricity to produce. For instance, desalination, one of the processes involved in providing the Republic’s water supply, requires energy to remove salt from seawater.
From January 2024 to December 2025, eligible Singaporean HDB households will receive an additional $20 per quarter in U-Save rebates – $80 a year in total – to cushion the impact of the increases in carbon tax and water price in 2024 and 2025.
On average, the additional U-Save rebates should fully offset the increase in utility bills for one- to two-room flats over the next two years, by about 80 per cent for three- to four-room flats, and by about 65 per cent for larger flats.
As part of its international commitment to tackling climate change, Singapore has a target of reducing greenhouse gas emissions to about 60 million tonnes in 2030.
Singapore’s emissions are expected to peak at around 65 million tonnes between 2025 and 2028, before they are reduced so as to reach net-zero emissions by 2050.

The latest figures show that Singapore’s greenhouse gas emissions in 2021 reached the highest levels yet at 57.7 million tonnes – representing an increase of around 9 per cent from 2020 levels.
One strategy to meet the net-zero target is raising the carbon tax.
According to the Ministry of Sustainability and the Environment, carbon tax provides a broad-based price signal across the economy to encourage companies to reduce their emissions and, at the same time, gives them the flexibility to act where it makes the most economic sense.
Dr David Broadstock, a senior research fellow and lead of energy transition at the National University of Singapore’s Sustainable and Green Finance Institute, said: “We are beginning to see prices which will be noticeable – which is important, since the carbon tax is necessary to achieve a timely energy transition, and reach our net-zero aspirations.
“It also is a timely juncture to think about how impactful high carbon prices will be. With a future price of $50 to $80 (per tonne of emissions) by 2030, Singaporeans will feel the effect more strongly still.

 

[LITTLEREDDOT]

SP Group to cut cooling system usage rate, waives fees till year-end after Tengah homeowners' complaints​

SP Group, CNA
The centralised cooling system in a four-room flat in Tengah (left), and the system's pipes running into a unit from the front door (right).
Join our WhatsApp or Telegram channels for the latest updates, or follow us on TikTok and Instagram.
BY

KOH WAN TING​

LOUISA TANG​

November 7, 2023

SINGAPORE — National grid operator SP Group said on Monday (Nov 6) that it will waive all centralised cooling system usage charges for Tengah homeowners till the end of this year and lower the usage rate from Jan 1, following a slew of complaints from residents.
In a “further gesture of goodwill”, homeowners who choose to cancel the installation of the system will only have to fork out half of the payment originally required, added SP Group.
In recent weeks, residents have written to the authorities and started an online petition about their concerns with the cost and management of the system, among other concerns.
A group of more than 100 residents sent a letter dated Oct 27 to the Prime Minister’s Office, expressing their "anxiety and disappointment over the issues" with the system. They detailed five key concerns: excessive charges, misleading advertisement and information, a lack of transparency, cancellation policy issues, and poor communication.
One of the main concerns included how the supposed cost savings from opting for the cooling system instead of conventional air conditioning appeared to be lower than what they were told.

They also pointed out that the current chilled water usage rate of S$0.2038 per kilowatt-hour refrigeration (kWrh) for October to November had increased compared to previous quarters. SP Group sets the chilled water usage rate of the cooling system, which is updated quarterly.
The residents asked for usage rates to be adjusted, or for fees to be completely waived for those looking to terminate their centralised cooling system contract.
Issues with the centralised cooling system, a sustainable alternative to air conditioning pioneered in the new Tengah housing estate, have cropped up since before residents began collecting their keys in end-August.
As of Nov 6, about 1,109 units out of 2,333 units in the first two Tengah projects — Plantation Acres and Plantation Grange — have collected their keys, said the Housing and Development Board (HDB) in response to CNA’s queries.
CNA earlier reported that homeowners found the trunking of the cooling system too bulky or unsightly. Others who began using the system found condensation or leakages, or that temperatures were not cold enough.
Unlike conventional air conditioning which uses refrigerants, the cooling system removes heat by piping chilled water into homes from centralised chillers on selected housing blocks. These pipes run through corridors and into each unit via the front door.

SP Group manages the sign-ups, installation and maintenance of the system and works with air-con manufacturer Daikin, which is responsible for installing indoor units, diagnosing and resolving reported issues.
While already adopted commercially, the cooling system is new to public housing and optional for homeowners. Residents can still choose to install conventional air-conditioning.
The option for centralised cooling is presented to new homeowners after they apply for their build-to-order flats. Homeowners will be given a tour of the MyTengah experience centre at HDB Hub, where they will be briefed on how the cooling system works and its benefits.
Upon signing a contract, homeowners would be given a 30-day cooling-off period, after which cancelling the contract would result in a 35 per cent penalty.

USAGE CHARGES​

On Monday, SP Group said it understands the concept of a centralised cooling system for residential homes is new, and “some time may be needed” for the earlier batches of homeowners to get used to it.
“Hence, as an additional goodwill gesture, SP will waive all centralised cooling system usage charges for Tengah customers during this interim period from now to Dec 31, 2023,” it said.

As for monthly usage charges, residents had pointed to various sources which advertised 30 per cent cost savings from using the cooling system compared to conventional air conditioning. These include the MyTengah website, which stated "30 per cent life cycle savings compared to conventional air-conditioning systems".
However the amount was recently amended to "17 per cent life cycle cost savings", upsetting residents.
Some took to a Telegram chat group to share cost estimates of their cooling system based on current usage rates, comparing them to data provided by brands of conventional air-conditioning systems.
They also noted that they have not been able to compare the full, sustained cost of using the centralised cooling system as SP Group had waived the chilled water charges from Oct 9 to Oct 31 during their checks.
Ms Chan Sze, who in her 30s and has a two-room flat in Plantation Grange, said that based on her meter readings so far, the cost of running the cooling system seemed "quite high".
"It ranges from about 2 kWrh to 4 kWrh per hour for my two-room flat (with one indoor unit), which is about S$0.45 to S$0.87 per hour. This is about the same as conventional (air conditioning) on the low end and almost twice as expensive on the high end."
Pointing out that cost savings had been marketed as 30 per cent, Ms Chan, who does administrative work, said: "It just feels (like) there is a mismatch of what we were sold and what (is) now received."
In their letter to the Prime Minister, residents further noted that the current quarter’s usage rate — S$0.2038 per kWrh — was nearly three times more the expected rate originally indicated by SP Group, despite only a 48 per cent increase in electricity costs since then.
In response, SP Group laid out the reasons behind the increase.
It also announced it would not charge homeowners for using the centralised cooling system till Dec 31, and will adjust the usage rate to S$0.132 per kWrh (before Goods and Services Tax) from Jan 1 next year.
It noted that residents’ claims of the original expected usage rate being S$0.072, as indicated by SP Group, “appears to be derived from an assumed cooling energy consumption of 10,200 kWrh”.
The usage rate charge is reviewed and adjusted quarterly, similar to electricity and gas tariffs. It was estimated at S$0.09 per kWrh in 2020 based on the electricity tariff, planned project costs and cooling energy consumption, said SP Group.
However, electricity cost has risen almost 50 per cent from S$0.196 per kWh in 2020 to S$0.287 per kWh now. Project costs have also increased 20 per cent due to the pandemic.
Taking these factors into account, along with an estimated lower cooling energy consumption, the expected centralised cooling system usage charge rate was increased to S$0.2038 per kWrh on Oct 1.
SP Group acknowledged that this increase from S$0.09 per kWrh “will have some impact" on the initial estimate of up to 30 per cent savings.
Tengah homeowners have not been billed on this rate yet as SP Group is performing an additional quality assurance service check on all flats, even though the rate has been published online.
With some initial usage data from Tengah households, SP Group added that it has “updated our assumptions and completed a review of the usage charge rate”.
The quality assurance process is ongoing for 330 households, with 43 per cent having completed the process so far.

CONTRACTUAL AGREEMENTS​

In terms of cancellation fees, some residents said they were only recently told to pay 135 per cent the cost of their contract for the centralised cooling system if they pulled out.
One of these residents, Ms Geraldine Ong, is due to collect her keys to her flat at Plantation Acres at the end of this month.
The accountant – also part of the group of residents who signed the letter – had wanted to cancel the cooling system as she was worried about leaking, the usage cost and SP Group's unresponsiveness to her queries.
The 38-year-old said she was asked to pay 135 per cent of the cost of her cooling system when she spoke to an SP staff member on Oct 24.
The cost of her five indoor units is S$4,500 excluding the Goods and Services Tax. This means that she may have to fork out S$6,075 if she terminates, an amount Ms Ong described as "crazy".
She expressed disappointment that SP Group had not pointed out the relevant clauses in the contract when she signed the agreement.
IT professionals Mr Sun, 33, and Mrs Sun, 30, told CNA about their worries of incurring a hefty loss if they cancelled their contract.
The system has already been installed in their five-room flat at Plantation Village; they are due to collect their keys in the first quarter of next year.
Their five indoor units costs S$4,917, including the additional cost of shifting a unit.
The couple had found that the cooling system's trunking ran into the toilet, affecting their renovation plans there. They were not made aware of this design when they signed up.
They also cited SP Group’s unresponsiveness to their queries as a factor in deciding to cancel their contract.
On Monday, SP Group said SP Group collects 35 per cent of the installation charge from customers who choose not to proceed with the system after a 30-day cooling off period when they sign an installation agreement. This is due to costs and resources incurred to secure supply and contracts for the installation.
Customers also have to pay the full installation charge if they choose not to proceed after the fan coil units, piping and cabling have been installed.
However, SP Group said it will now reduce the payment to be collected by 50 per cent in the event of cancellation as a “further gesture of goodwill”.
This was after taking into account feedback from the early batch of homeowners and the initial issues that cropped up.

DEFECTS RECTIFIED​

In terms of defects, SP Group said that as of Oct 27, 88 per cent – or 470 out of a total of 536 reported defects – have been resolved.
The group is working to rectify the remaining 66 reported defects as soon as possible, and is in close contact with these residents who come from 48 households, it added.
SP Group said that residents who were among the first to collect their keys had reported workmanship issues with the fan coil units in their centralised cooling system.
This "largely stemmed from construction constraints caused by the COVID-19 pandemic, leading to HDB’s accelerated construction timeline to hand over the blocks to residents”, added SP Group.
Because of this, the group did not have enough time to perform checks and ensure the smooth running of the system, before residents of the earlier batches of flats collected their keys.
“SP is committed to rectifying the issues, and we have in place a systematic and convenient issues reporting and rectification process for residents. Issues reported are typically attended to by the next business day, and we aim to resolve these issues within 10 business days,” it said.
Moving forward, SP Group said it has seen a reduction in the feedback rate on the centralised cooling system for flats handed over in October, compared to blocks handed over in the previous two months.
It added that it worked closely with HDB to allow its installation teams to conduct checks before owners collected their keys.

LIFE CYCLE COSTS​

SP Group also noted that after the usage rate is adjusted from Jan 1, customers can benefit from life cycle savings of up to 30 per cent in comparison to conventional split unit air-conditioning over a 20-year period.
However, because some residents may not stay in their homes for 20 years, SP Group said it worked out the estimated life cycle costs over a shorter period of seven years – the life span of a condenser unit of a conventional air-conditioning system.
SP Group cautioned that “meaningful cost comparisons" must be done on a “like-for-like basis”, owing to the differences between the centralised cooling system and a conventional air-conditioning system.
Life cycle costs of the centralised cooling system are calculated based on the costs for hardware, equipment replacement and maintenance, and monthly system usage over 20 years.

SP GROUP’S ENGAGEMENT WITH RESIDENTS​

SP Group also said it has engaged with residents from more than 2,000 households through various platforms in the last 12 months.
“Besides the Tengah website and app, we have held 18 events for residents to provide updates on their upcoming centralised cooling system activation and address their queries in person,” it added.
Meanwhile, HDB said it will continue to “monitor feedback” and support SP Group to ensure the roll-out of the centralised cooling system in Tengah “proceeds as smoothly as possible”.
SP Group said in its statement: “We apologise that our service delivery and communications with customers have fallen short of expectations.
“We will endeavour to improve our customers’ experience with the centralised cooling system. We thank our customers for their support, patience and understanding.” CNA

 

[True Believer]

ESG red "Mercedes" spotted at a HDB parking lot. LOL!