Chitchat Senoko Energy Is Broke! Needs A Bailout From PAP! Cheaper Electricity For Sinkies?

[JohnTan]

SINGAPORE - Local utility company Senoko Energy is reported to have requested aid from the Government as it rides out a supply glut expected to continue for a few more years.

Nikkei Asian Review reported that it has asked to borrow between $100 million and $200 million from the Government.

It is also lobbying for the Government to create a system that guarantees a revenue stream under long-term contracts, regardless of power plant utilisation.

"With the severe business outlook for the next year or two creating the risk of a shortage of operating capital, the utility is battening down the hatches," an official at Japanese trading house Marubeni reportedly said.

Senoko, which has been operating since 1977, has three subsidiaries - Senoko Energy Supply, Senoko Services and Senoko Gas Supply.

The company was bought in 2008 by Marubeni, Kansai Electric Power, Kyushu Electric Power, Japan Bank for International Cooperation and French company GDF Suez, now Engie.

The report said it slipped into the red in 2016, and its net loss widened to about $400 million in 2018.

Singapore is facing overcapacity in its power generation market, as the peak supply capacity is now believed to be double its peak demand. Proceeds from electricity sales are not enough to cover costs of fuel, maintenance and financing.

Asked about the current supply glut, a spokesman with the Energy Market Authority told Nikkei Asian Review that power companies made their investment decisions based on bullish projections for electricity demand growth that did not materialise.

"Flexibility was provided for power generation companies to retire their steam plants," the official added.

"While the power generation market is currently experiencing a situation of having more supply than demand, this looks to be changing as electricity demand is increasing with more data centres coming onstream, as well as older and inefficient generating units being decommissioned."


https://www.straitstimes.com/singap...-amid-overcapacity-in-power-generation-market

 

[Leongsam]

Time to raise electricity prices to cover the shortfall.

 

[JohnTan]

Time to raise electricity prices to cover the shortfall.

When electricity prices rise, so will the quality of the electricity provided. It's the same for food and transport.

 

[mojito]

Sound like the Nips got conned buying into the PAP's bullish projections. A first!

 

[Confuseous]

Sound like the Nips got conned buying into the PAP's bullish projections. A first!

They were not the only ones.
At least three of the SP re-suppliers have gone out of business.

 

[krafty]

government sure has to bail them, japanese are not nitwit in the first place to have taken over senoko. lesson learnt and repeating myself again, don't get swallowed up by the japanese and not knowing it.

 

[halsey02]

When electricity prices rise, so will the quality of the electricity provided. It's the same for food and transport.

Yup, the PAP ministers salries etc., must rise in tandem, they have done a good job. Birds of a feather fuck together, oops! flock together. PAP is the best.

 

[laksaboy]

I wonder which clown green lighted this?

https://www.ema.gov.sg/Electricity_Market_Liberalisation.aspx

If you need bailouts and subsidies, it's not really a free market.

 

[syed putra]

Sell excess capacity to jiu hu or batam. I think there is a arrangement.

 

[mudhatter]

More like they need 4 million more CECA virus import to justify the current electricity overcapacity.

How else to justify overcapacity in electricity supply lah?

 

[aerobwala]

Potential customer just 3 kilometer across Johor Straits.

Sell excess capacity to jiu hu or batam. I think there is a arrangement.

 

[laksaboy]

Potential customer just 3 kilometer across Johor Straits.

Water for electricity barter.

 

[congo9]

Singapore with excess capacity can sell across caueway. What are they waiting for?

 

[Loofydralb]

Sound like the Nips got conned buying into the PAP's bullish projections. A first!

Japs are a tightknit bunch. News of this backstabbing playout of the Japs will have repercussions in other areas. Trust will be destroyed. Await more Jap companies pulling out to Malaysia.

 

[rotiprata]

Singapore with excess capacity can sell across caueway. What are they waiting for?

ya.... 3 sen/1000MW.... PAP want to sell or not...

 

[congo9]

Well we have a lot of FTA. So sell excess capacity to Malaysia at a preference Rate. We sell you electricity and you sell water to me.

 

[hofmann]

Senoko energy is foreign owned. Why should tax payers dollars be used to bail them out? Let them go bankrupt.

 

[laksaboy]

Japs are a tightknit bunch. News of this backstabbing playout of the Japs will have repercussions in other areas. Trust will be destroyed. Await more Jap companies pulling out to Malaysia.

Don't forget how Pokka was screwed.

 

[laksaboy]

Senoko energy is foreign owned. Why should tax payers dollars be used to bail them out? Let them go bankrupt.

I think almost all of the power companies have been sold to, or are heavily invested by foreign entities. You have to thank Lee Hsien Loong for that.

 

[hofmann]

I think almost all of the power companies have been sold to, or are heavily invested by foreign entities. You have to thank Lee Hsien Loong for that.

Or Ho Ching?