SINGAPORE: Electricity tariffs in Singapore are not likely go down despite the drop in oil prices.
That's because power rates are not pegged to fluctuating oil prices but to what fuel would cost when delivered every three months.
To provide more certainty, the Trade and Industry Ministry has decided, since 2004, to peg electricity tariffs to a three-month forward fuel price formula.
That means power rates do not fall immediately if oil prices drop but will instead follow the the market price of oil delivered in the next quarter.
"This time lag works both ways - that is electricity tariffs move up more slowly when fuel oil prices are rising and move down more slowly when fuel oil prices are falling," said Senior Minister of State for Trade and Industry S Iswaran.
Mr Iswaran was responding to questions in Parliament.
He also said regulations are in place to prevent the power supplier from overcharging consumers.
But he said the government cannot make it compulsory for companies to transfer more of their profits to consumers as that would discourage them from investing more in improving electricity supply in Singapore.
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There again , the GOVERMENT CANNOT MAKE IT COMPULSORY for companes to transfer more of their profit to consumer ??????????????? Is power and elect a basic consumer goods which the goverment must provide for its own people ? Or we have to pay with it with our BLOOD money ? who is the largest share holder of singapore power ?????????? It is the bloody TEMSAK HOLDING !
That's because power rates are not pegged to fluctuating oil prices but to what fuel would cost when delivered every three months.
To provide more certainty, the Trade and Industry Ministry has decided, since 2004, to peg electricity tariffs to a three-month forward fuel price formula.
That means power rates do not fall immediately if oil prices drop but will instead follow the the market price of oil delivered in the next quarter.
"This time lag works both ways - that is electricity tariffs move up more slowly when fuel oil prices are rising and move down more slowly when fuel oil prices are falling," said Senior Minister of State for Trade and Industry S Iswaran.
Mr Iswaran was responding to questions in Parliament.
He also said regulations are in place to prevent the power supplier from overcharging consumers.
But he said the government cannot make it compulsory for companies to transfer more of their profits to consumers as that would discourage them from investing more in improving electricity supply in Singapore.
==========================================================
There again , the GOVERMENT CANNOT MAKE IT COMPULSORY for companes to transfer more of their profit to consumer ??????????????? Is power and elect a basic consumer goods which the goverment must provide for its own people ? Or we have to pay with it with our BLOOD money ? who is the largest share holder of singapore power ?????????? It is the bloody TEMSAK HOLDING !
