<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>More realistic benchmark needed for electricity prices
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->I REFER to the article "Queries on your power bills answered" last Saturday. The Energy Market Authority's reply to the question on why electricity prices are pegged to oil prices rather than gas prices, as 80 per cent of our electricity is powered by natural gas, seems to deviate from the question. According to their reply, it is because Asia does not have a benchmark for gas prices, so electricity prices are pegged to oil prices.
What's the point of Singapore Power clinching a good long-term deal for gas supply from neighbouring countries when it is not shared with the consumers?
I am sure something can be done to provide a more realistic benchmark for natural gas rather than pegging it to oil prices. Hazman Jamil
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->I REFER to the article "Queries on your power bills answered" last Saturday. The Energy Market Authority's reply to the question on why electricity prices are pegged to oil prices rather than gas prices, as 80 per cent of our electricity is powered by natural gas, seems to deviate from the question. According to their reply, it is because Asia does not have a benchmark for gas prices, so electricity prices are pegged to oil prices.
What's the point of Singapore Power clinching a good long-term deal for gas supply from neighbouring countries when it is not shared with the consumers?
I am sure something can be done to provide a more realistic benchmark for natural gas rather than pegging it to oil prices. Hazman Jamil