No mention that Sporns are being told to pay x times more now than when oil was being used. Who are the Papayas trying to fool?
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Electricity prices: Why HK is cheaper
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->IN HER letter on Thursday ('Consider tiered charge in electricity tariff'), Non-Constituency MP Sylvia Lim suggested adopting a tiered tariff system to make electricity more affordable, like Hong Kong.
Ms Lim acknowledged that electricity prices are lower in Hong Kong partly because it produces electricity from coal, whereas Singapore produces most of our electricity from natural gas. In fact, this is the main reason, rather than Hong Kong's tiered tariff system.
Singapore's approach is to charge everyone the full cost of electricity, and give targeted assistance, through U-Save rebates, to households that need it most. After taking U-Save into account, a three-room HDB household effectively pays an average of $50 a month for its electricity bill, comparable to what is payable in Hong Kong for the same amount of electricity consumed.
Charging below full cost in a tiered system would reduce the incentive for households to save electricity and lead to wasteful consumption. It is also not an efficient way to help the poor because well-off households would also enjoy the lower tariff rate in the first tier. If we need to do more to help the poor, it is better to increase the U-Save amount, as the Government has done.
Ms Lim pointed out that Singapore does have a tiered system of tariffs for water. However, water is a strategic resource for Singapore, and the water tariff is set so the first tier recovers the full cost of water production, and the next tier is set higher to encourage water conservation. Applying this principle to electricity tariffs would therefore raise prices for Singaporeans.
Ms Lim also asked for the details of the electricity tariff formula to be published. The Energy Market Authority has done so on its website. Lim Bee Khim (Ms)
Director/Corporate Communications
For Permanent Secretary
Ministry of Trade and Industry
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Electricity prices: Why HK is cheaper
</TR><!-- headline one : end --><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->IN HER letter on Thursday ('Consider tiered charge in electricity tariff'), Non-Constituency MP Sylvia Lim suggested adopting a tiered tariff system to make electricity more affordable, like Hong Kong.
Ms Lim acknowledged that electricity prices are lower in Hong Kong partly because it produces electricity from coal, whereas Singapore produces most of our electricity from natural gas. In fact, this is the main reason, rather than Hong Kong's tiered tariff system.
Singapore's approach is to charge everyone the full cost of electricity, and give targeted assistance, through U-Save rebates, to households that need it most. After taking U-Save into account, a three-room HDB household effectively pays an average of $50 a month for its electricity bill, comparable to what is payable in Hong Kong for the same amount of electricity consumed.
Charging below full cost in a tiered system would reduce the incentive for households to save electricity and lead to wasteful consumption. It is also not an efficient way to help the poor because well-off households would also enjoy the lower tariff rate in the first tier. If we need to do more to help the poor, it is better to increase the U-Save amount, as the Government has done.
Ms Lim pointed out that Singapore does have a tiered system of tariffs for water. However, water is a strategic resource for Singapore, and the water tariff is set so the first tier recovers the full cost of water production, and the next tier is set higher to encourage water conservation. Applying this principle to electricity tariffs would therefore raise prices for Singaporeans.
Ms Lim also asked for the details of the electricity tariff formula to be published. The Energy Market Authority has done so on its website. Lim Bee Khim (Ms)
Director/Corporate Communications
For Permanent Secretary
Ministry of Trade and Industry