<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR class=msghead><TD><TABLE cellSpacing=0 cellPadding=0 border=0><TBODY><TR class=msghead><TD class=msgF noWrap align=right width="1%">From: </TD><TD class=msgFname noWrap width="68%">T_O_C <NOBR></NOBR> </TD><TD class=msgDate noWrap align=right width="30%">5:16 am </TD></TR><TR class=msghead><TD class=msgT noWrap align=right width="1%" height=20>To: </TD><TD class=msgTname noWrap width="68%">ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (2 of 3) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft width="1%" rowSpan=4> </TD><TD class=wintiny noWrap align=right>6636.2 in reply to 6636.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>Electricity crisis?
I refer to the report “Households to see average rise of about 21% in electricity bills from Oct” (CNA, Sep 29).
Singapore Power’s Net Profit After Taxation increased by 72 per cent from $ 630 million in FY 03/04 to $ 1.086 billion in FY 07/08 - an annualised increase of about 15 per cent per annum.
The power generation companies like Tuas Power had a profit increase of about 70 per cent from $ 104 million in 2006 to $ 177 million in 2007 ; Powerseraya’s profitis for FY 07/08 increased by 30 per cent in a year to $ 218 million, Senoka Power’s profits for the year ended 31 March, 2008 was $ 130 million.
The above financial means that the total profits of the power companies was about $ 1.604 billion.
This sum is even greater than the original projected increase in revenue from the 2 per cent increase in GST last July to help the needy.
To what extent has the pegging of electricity tariffs solely to fuel prices, contributed to the high profits of the power companies.
Shouldn’t other factors like increase in profits be considered too ?
If the formula for transport fares can be pegged to average wage increase, average inflation and productivity, why is the electricity tariff pegged only to fuel prices ? (Note : Even this formula has led to ever increasing record profits for SMRT).
Now that two of the three power companies have been sold to foreign companies, and the third one is in the process of being sold, will the profits of power companies continue to rise ?
Since Singapore Power and the power generation companies (before their sale) are in a sense, owned by the state, why is the state making a whopping $ 1.604 billion in profits in a year, from providing a monopolistic essential good to Singaporeans ?
Instead of just announcing tariff increases due to fuel prices, why not require the projected increase in profits to be announced too ?
What’s the point of announcing a 50 per cent increase in the U-Save rebate on national day, only to see it being eroded by the subject tariff increase just a month plus after ?
As to “But the government rebates of $ 310 to $ 330 will more than cover the increases for these households” (one to three-room HDB flats), according to the Department of Statistics (DOS), only 271,650 were 1, 2 and 3-room HDB flats, out of a total of about 1,118,260 residential properties in 2007.
Does this mean that the U-Save rebates are not enough for about 76 per cent of households (846,610 divided by 1,118260) ? (Note : private property households don’t get any U-Save rebates).
I also refer to media reports on the Electricity Vending System (EVS) trial.
Consumers will pre-pay for electricity under the EVS.
If the trial is successful, it is the plan to have the EVS as the electricity delivery system for all consumers, by 2010.
As of June this year, about 13,700 households have been put on a pre-paid metering scheme (PAYU) after they had their power supply cut off or were in danger of having the supply disconnected (“More unable to pay electricity bills”, ST, Aug 29).
Social workers have also said that surprisingly, there has been a 35 per cent increase in 4 and 5-room HDB households, who are unable to pay their electricity bills.
This brings up the question as to whether the U-Save Rebate for utilities are enough to offset the rising inflation of electricity tariffs and bills.
I would think that most households may try very hard to pay their electricity bills first, over other outstanding bills, as I cannot imagine what life may be like when one’s electricity is cut-off.
What will happen to households like the 13,700 who cannot pay now, and new households who may be unable to pay in the future, if the EVS is fully implemented in 2010 ?
At least now, if you cannot pay, you can be in arrears, giving one a few months’ grace, before electricity is cut-off, and replaced by the pre-paid metering scheme.
I would like to suggest that the current pre-paid metering scheme, and a grace period for arrears, be continued, particularly for lower-income households.
Otherwise, Singaporeans may become even more financially stressed under the EVS.
It was last reported in the media in 2006 that the number of accounts in arrears exceeding $ 500 for three months and longer is about 3,600, against about 10,000 reported in the media in 2005.
So, why has the number of Pay-As-You-Use (PAYU) meters increased to 13,700 ?
In Malaysia, the government announced on its last national day on 31 August, 2008, that free electricity would be given to all households with electricity bills not exceeding RM 20 to help the needy.
Financial meltdown?
The anticipated bank bailout did not receive the U.S. Congress’ approval and the Dow Jones dropped 778 points.
Is it the end ?
Perhaps we need to start at the very beginning - how and why did the financial crisis start ?
The current financial crisis began with the bailout of Fannie Mae and Freddie Mac (F & F).
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I refer to the report “Households to see average rise of about 21% in electricity bills from Oct” (CNA, Sep 29).
Singapore Power’s Net Profit After Taxation increased by 72 per cent from $ 630 million in FY 03/04 to $ 1.086 billion in FY 07/08 - an annualised increase of about 15 per cent per annum.
The power generation companies like Tuas Power had a profit increase of about 70 per cent from $ 104 million in 2006 to $ 177 million in 2007 ; Powerseraya’s profitis for FY 07/08 increased by 30 per cent in a year to $ 218 million, Senoka Power’s profits for the year ended 31 March, 2008 was $ 130 million.
The above financial means that the total profits of the power companies was about $ 1.604 billion.
This sum is even greater than the original projected increase in revenue from the 2 per cent increase in GST last July to help the needy.
To what extent has the pegging of electricity tariffs solely to fuel prices, contributed to the high profits of the power companies.
Shouldn’t other factors like increase in profits be considered too ?
If the formula for transport fares can be pegged to average wage increase, average inflation and productivity, why is the electricity tariff pegged only to fuel prices ? (Note : Even this formula has led to ever increasing record profits for SMRT).
Now that two of the three power companies have been sold to foreign companies, and the third one is in the process of being sold, will the profits of power companies continue to rise ?
Since Singapore Power and the power generation companies (before their sale) are in a sense, owned by the state, why is the state making a whopping $ 1.604 billion in profits in a year, from providing a monopolistic essential good to Singaporeans ?
Instead of just announcing tariff increases due to fuel prices, why not require the projected increase in profits to be announced too ?
What’s the point of announcing a 50 per cent increase in the U-Save rebate on national day, only to see it being eroded by the subject tariff increase just a month plus after ?
As to “But the government rebates of $ 310 to $ 330 will more than cover the increases for these households” (one to three-room HDB flats), according to the Department of Statistics (DOS), only 271,650 were 1, 2 and 3-room HDB flats, out of a total of about 1,118,260 residential properties in 2007.
Does this mean that the U-Save rebates are not enough for about 76 per cent of households (846,610 divided by 1,118260) ? (Note : private property households don’t get any U-Save rebates).
I also refer to media reports on the Electricity Vending System (EVS) trial.
Consumers will pre-pay for electricity under the EVS.
If the trial is successful, it is the plan to have the EVS as the electricity delivery system for all consumers, by 2010.
As of June this year, about 13,700 households have been put on a pre-paid metering scheme (PAYU) after they had their power supply cut off or were in danger of having the supply disconnected (“More unable to pay electricity bills”, ST, Aug 29).
Social workers have also said that surprisingly, there has been a 35 per cent increase in 4 and 5-room HDB households, who are unable to pay their electricity bills.
This brings up the question as to whether the U-Save Rebate for utilities are enough to offset the rising inflation of electricity tariffs and bills.
I would think that most households may try very hard to pay their electricity bills first, over other outstanding bills, as I cannot imagine what life may be like when one’s electricity is cut-off.
What will happen to households like the 13,700 who cannot pay now, and new households who may be unable to pay in the future, if the EVS is fully implemented in 2010 ?
At least now, if you cannot pay, you can be in arrears, giving one a few months’ grace, before electricity is cut-off, and replaced by the pre-paid metering scheme.
I would like to suggest that the current pre-paid metering scheme, and a grace period for arrears, be continued, particularly for lower-income households.
Otherwise, Singaporeans may become even more financially stressed under the EVS.
It was last reported in the media in 2006 that the number of accounts in arrears exceeding $ 500 for three months and longer is about 3,600, against about 10,000 reported in the media in 2005.
So, why has the number of Pay-As-You-Use (PAYU) meters increased to 13,700 ?
In Malaysia, the government announced on its last national day on 31 August, 2008, that free electricity would be given to all households with electricity bills not exceeding RM 20 to help the needy.
Financial meltdown?
The anticipated bank bailout did not receive the U.S. Congress’ approval and the Dow Jones dropped 778 points.
Is it the end ?
Perhaps we need to start at the very beginning - how and why did the financial crisis start ?
The current financial crisis began with the bailout of Fannie Mae and Freddie Mac (F & F).
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