OPEC boost oil output to record amid glut. But SG Electricity Cost RISE? Fair?

[makapaaa]

http://www.businesstimes.com.sg/ene...oil-output-to-record-with-iran-back-amid-glut

Quote:[TEHRAN] Opec could potentially boost crude oil production to 33 million barrels a day, the most ever, after international sanctions are removed against Iran amid a global supply glut, according to the country's Opec representative.

The global oil market is already in surplus by about 3 million barrels a day, with Saudi Arabia and Iraq responsible for Opec's oversupply in the past six months, Iran's state-run Islamic Republic News Agency reported Sunday, citing Mehdi Asali. Iran can boost output by 500,000 barrels a day within one week after sanctions are lifted, Oil Minister Bijan Namdar Zanganeh said earlier this month.

Crude has lost half its value in the past year as US production jumped to the highest level in more than 40 years and Saudi Arabia had record output. Prices collapsed after Opec decided on Nov 27 to maintain production rather than sacrifice market share.

Brent oil for October settlement was trading at US$49.01 a barrel, down 0.4 per cent, at 1.18 pm London time Monday. Prices have fallen about 15 per cent this year. High supplies in North America and Opec, lack of demand growth and the strengthening dollar are all cause for the lower oil prices, Asali said.

Opec pumped 32.1 million barrels a day in July, the 14th consecutive month that the 12-nation group has produced more than its collective target of 30 million barrels, data compiled by Bloomberg show. The 12-member group's all-time high output was 32.8 million barrels set in July 2008, the data shows.

Iran made a "big mistake" when it backed Opec's decision in December 2011 to discard individual production quotas, Asali said. That allowed Saudi Arabia, Kuwait and other members to take over Iran's share which was diminishing because of sanctions, he said.

BLOOMBERG​

 

[makapaaa]

http://www.channelnewsasia.com/news/singapore/increase-in-electricity/1950378.html

[h=1]Increase in electricity tariffs for Q3: SP Services[/h][h=2]Electricity tariffs will increase by an average of 1.54 cents per kWh from Jul 1 to Sep 30, SP services says. It attributes the increase to a 15.1 per cent rise in the cost of natural gas to generate electricity.[/h]

• POSTED: 30 Jun 2015 17:16
• UPDATED: 30 Jun 2015 18:16

• PHOTOS

File photo of a light bulb (Photo: Calvin Oh)

SINGAPORE: Electricity tariffs will increase by an average of 1.54 cents per kWh from Jul 1 to Sep 30, a 7.5 per cent increase from the previous quarter of the year, SP Services announced in a media release on Tuesday (Jun 30).
The electricity tariff for households will be 22.41 cents per kWh for this period after the revision. SP Services attributed the increase to a 15.1 per cent rise in the cost of natural gas to generate electricity from the second quarter of 2015.
It expects the average monthly electricity bill for families living in four-room HDB flats to increase by S$6.01.

(Table: SP Services)
​

(Data: SP Services)
​

SP Services said it reviews electricity tariffs quarterly based on guidelines set by electricity industry regulator Energy Market Authority (EMA) and its latest tariffs have been approved by the authority.


- CNA/dl

 

[makapaaa]

Yet, the FAP can tell you at the same time this ->




https://www.mti.gov.sg/MTIInsights/Pages/FAQs on Electricity Tariffs.aspx

12 Jul 2011 CATEGORY
TOPICS
Page Content
[h=3]FAQS ON ELECTRICITY TARIFFS[/h]
From time to time, MTI receives public queries on electricity tariffs; these include why electricity tariffs are pegged to oil prices and why electricity tariffs seem to be increasing. MTI has on various occasions through the media addressed these queries.
For your easy reference, we have compiled replies to these Frequently Asked Questions (FAQs) on electricity tariffs.

How is electricity tariff determined?

There are two key components to the cost of electricity in Singapore: the fuel cost and non-fuel cost. The fuel cost, which includes the cost of imported natural gas, is pegged to the price of fuel oil. The non-fuel cost, which reflects the cost of generating and delivering electricity to our homes, has remained largely unchanged over the past few years.

Why are electricity tariffs pegged to oil prices when Singapore uses natural gas to generate electricity?

While Singapore's electricity is mainly generated from imported natural gas, the prices of natural gas (which are determined by commercial contracts) are indexed to fuel oil prices. This is the market practice in Asia for natural gas contracts.Hence, if the prices of fuel oil increase by 10%, natural gas prices would also increase by 10%.This is why the fuel cost component of our electricity tariff is affected by movements in fuel oil prices.

Why can’t the government help by reducing electricity prices instead of giving U-Save rebates?
The Government recognises that there are households which may face difficulties coping with the rising cost of energy, and is ready to help them. Our approach is to price energy right.This ensures that consumers take into consideration the true cost of energy, make efficient use of a scarce resource, and avoid the wasteful consumption associated with subsidies. Rather than subsidising electricity consumption directly, the Government has chosen to provide assistance to HDB households through the use of rebates, with higher amounts of rebates going to lower-income households.
This year, about $250 million in utilities rebates (U-Save rebates) have been given to help Singaporeans cope with higher energy prices. The total amount rebates received by Singaporean households in 2011 will in fact offset more than 4 months of utilities bills for families living in 1- and 2-room flats; those living in all other HDB flats will benefit from at least 1 month’s offset of their utilities bills. Since 2007, the Government has provided close to $800 million of such rebates, for the benefit of 800,000 households.

If electricity prices are pegged to fuel oil prices why is it that the increase does not correspond with the movement in fuel oil prices?

The electricity tariff is set every three months, based on the average forward fuel oil price over the past three months. This means that if average fuel oil price from July to September decreases, we will see a corresponding dip in electricity prices for the next quarter from October to December.Similarly, the tariff for October to December will be adjusted upwards if the average fuel oil price increases during the period from July to September.

Is privatisation/liberalisation of the electricity to blame for the – electricity tariff increases?

The liberalisation of the electricity market has not increased the electricity tariff. On the contrary, it has introduced competition into the market and helped to improve efficiency and drive down prices. For example, power generating companies have switched from oil-fired steam plants to most cost efficient ways of generating electricity such as gas-fired combined cycle gas turbines (CCGT). Had we continued to use steam plants, the electricity tariff today would be about 15 per cent higher, reflecting the relative efficiency of the CCGT turbines.

For more information on electricity tariffs, please refer to the following website: http://www.ema.gov.sg/Electricity/new/

 

[makapaaa]

And the look at the price of natural gas is stable for the last 5 months. Where is the justification for 7.5% increase in electricity cost then?

http://www.nasdaq.com/markets/natural-gas.aspx?timeframe=1y

 

[vomitblood]

there are some things that don't go down: ERP, PAP and electricity fees