Electricity up 22% - Anyone knows why????

[JohnTT]

Electricity up 22%. Heard from many people that Singapore Powers went into hedging of gas-related products b'cos of anticipation of higher price, but were wrong, & have no choice but to take delivery, which is why the higher price was passed to the consumers.

Any bro can verify this????

 

[Ramseth]

Singapore Power announced it themselves. They're into 3-month forward pricing based on US$155 per barrel. As far as I understand, sometime in Jun/Jul 2008, SingPower contracted at US$155 per barrel for Oct-Dec 2008. Today, oil price is US$70 per barrel. Let's see if they give us a 55% discount for Jan-Mar 2009.

 

[Ramseth]

Hedging forward at US$155 required and entailed one logic, that oil price would rise significantly beyond US$155 in Oct-Dec 2008, e.g. towards US$200, which I think (with or without hindsight) is illogical. For if that happened, many countries simply couldn't afford oil anymore. Demand will fall, then price will fall back with demand, which is what's happening now. Oil price is inelastic to a certain extent. Unlike gold, people don't buy it to hoard, people buy it to burn.

 

[Ramseth]

The cause of skyrocketing oil price in the first half of the year wasn't about demand and supply, it was caused by speculative frenzy. Basically, SingPower lost about US$85 per barrel to speculators. We electricity consumers foot the bill of course.

 

[zack123]

In summary many are paying for the folly of 1? Shouldn't heads be rolling? I have not heard of any changes in SP's management so far.

 

[oli9]

Singapore Power announced it themselves. They're into 3-month forward pricing based on US$155 per barrel. As far as I understand, sometime in Jun/Jul 2008, SingPower contracted at US$155 per barrel for Oct-Dec 2008. Today, oil price is US$70 per barrel. Let's see if they give us a 55% discount for Jan-Mar 2009.

The problem is, how many barrels did the SP Bastards bought for Oct-Dec08 period?
Let's assume they bought 5,000 barrels but only consumed 2,500. Does that mean that we consumers still have to bear the brunt of USD155 to exhaust the existing stock before the USD70 barrels kicked in?

 

[SIFU]

so that SP CEO can jusitfy his million dollar pay and bonus..

 

[halsey02]

The cause of skyrocketing oil price in the first half of the year wasn't about demand and supply, it was caused by speculative frenzy. Basically, SingPower lost about US$85 per barrel to speculators. We electricity consumers foot the bill of course.

We the citizens of Singapore, have pledge overselves as one united people, to foot the bill.

Didn't you read & recite the pledge?

We are already footing the bill for a very expensive division 1, hip hop 65 team, & every other bills. So, what is new?

 

[Devil Within]

Money no enough?

 

[Ramseth]

Using the 22% hike and assuming 1 million households with average bill of $100 per month as benchmark, that's S$22 million. Add to that, say a 300,000 business establishments with average bill of $1,000 per month, that's S$66 million. All in all, Singaporeans are looking at almost (if not more than) S$100 million additional expenses over 3 months.

Disclaimer: My assumption is only personal estimation, may or may not be accurate.

 

[Swiss Standard]

Electricity up 22% ....because oil drop to $70 and our power supplier make 1 billion.
Because they want to make $10 billion instead.

 

[Pastors_of_CHC_Sucks]

That is really bad. They do the increase without thinking about the mass consumers.

 

[red amoeba]

I think FAT HOPE that SPower will drop tarriffs by 55% to reflect the forward rates for oil. By the next review - which is due end Dec, I am sure they will cook up some excuse to reduce by a smaller margin.

The tarriffs will fall but it won't be 55% mark my words. I thought one of the power station is powered by coal? Can't SP increase the power from the coal-powered station to compensate the rise in costs so as to reduce reliance on oil or natural gas?

Whichever way I look at it - its a crooked logic and the more that SP explain, the more idiotic they look. As a utility provider (eg: water and gas) they are providing the service based on profits and not the needs of the citizens. Expect more ruthless commercial driven decisions now that the government has sold one power station to Chinamen.

 

[theblackhole]

this is really ridiculous! how could such an important national's utility be subjected to such frenzy and panic speculation!!! a we sold one gas works to a foreign company too! come on singaporeans, don't u think it's time we wake up!

we need more TKLs around!!!

 

[DIVISION1]

Please refer your question to the PUB. The official answer has been given umpteen times.

 

[zack123]

Please refer your question to the PUB. The official answer has been given umpteen times.

But does it make sense?

 

[tonychat]

Electricity up 22% - Anyone knows why????

PAP wants to jump start the vaseoline market in Singapore.

 

[DIVISION1]

Those who are unhappy can lodge a petition or speak at Speakers Corner.

 

[tonychat]

Those who are unhappy can lodge a petition or speak at Speakers Corner.

speak about jumpstarting the vaseoline market?

or the correct way to apply vaseoline.

 

[Conan the Barbarian]

Electricity up 22%. Heard from many people that Singapore Powers went into hedging of gas-related products b'cos of anticipation of higher price, but were wrong, & have no choice but to take delivery, which is why the higher price was passed to the consumers.

Any bro can verify this????

Yes, its verified.
Reason is very simple. Because they can,
and there is jack shit you or anyone can do
about it. Consider yourself lucky its only 22%.