Will electricity still be pegged to oil when it is down to US$20 per barrel?

[2standards]

Best logical reply ever from EMA




Make it fairer, more transparent

I REFER to last Saturday's letter, 'EMA explains spike'.
To the question on why, even though 80 per cent of our electricity is powered by natural gas, electricity prices are pegged to oil prices, the Energy Market Authority (EMA) replied that, because there is no Asian benchmark for gas prices, oil prices are used instead. In other words, it is not the actual cost of raw material (gas) that is used in computing electricity prices.

Surely the power generation companies know exactly how much they pay for natural gas. Is it not possible to determine electricity prices more accurately, rather than stick to 'this is what we have been doing all along since 2004, so we will continue to do it'?

Another issue this price increase has brought up is transparency. I was unable to find anywhere the formula to determine these prices. Perhaps the power companies should be required to publish their raw material prices, overheads and margins on their websites, so the public are kept up to date.

With privatisation of electricity, is there still a need for a 'one price for all' approach? Let the power companies figure out how best to obtain the lowest-priced raw material (using spot, one-month or three-month futures, or private agreements with gas producers) and reflect it immediately in monthly bills. This will allow competition to increase efficiency. EMA should play the role of moderator to ensure there is no cheating or collusion.

Like most Singaporeans, I am not asking for subsidies for utilities. I am just asking for fair and transparent pricing.

 

[JinGanKor]

Until the day we can get enough oppositions and able to check their accounts, we will be able to prove that the hike is not necessary and how much profit they have made from the people.

we have already reach a stage where they can increase whenever they like without the need of thinking a convincing reason. All they need is go ahead with the hike and tell you the sun is square and insist it is square and all the media will also tell you the sun is square, and that will be the end of conversation and the result will stay this way.

DEMOCRACY in this land? is like telling me the sun is square, and GST is to help the poor, ERP is to ease congestion, Ministers' pay hike is a good deal for the people, etc...

too many funny reasons until i get so numb nowadays.

maybe some bros here can compile a nation joke book by our leaders and put on youtube.

 

[2standards]

They are not making sense anymore

Until the day we can get enough oppositions and able to check their accounts, we will be able to prove that the hike is not necessary and how much profit they have made from the people.

we have already reach a stage where they can increase whenever they like without the need of thinking a convincing reason. All they need is go ahead with the hike and tell you the sun is square and insist it is square and all the media will also tell you the sun is square, and that will be the end of conversation and the result will stay this way.

DEMOCRACY in this land? is like telling me the sun is square, and GST is to help the poor, ERP is to ease congestion, Ministers' pay hike is a good deal for the people, etc...

too many funny reasons until i get so numb nowadays.

maybe some bros here can compile a nation joke book by our leaders and put on youtube.

 

[JohnTT]

A lot of Singapore money are lost in the financial turmoil, thanks to investment by GIC & Temasek.

For your info, Temasek did not take up BOA (aka Bank Of America) offer for Merryl Lynch shares. In other words, the average price paid by Temasek for ML's shares may not be US$23 as reported. Likely to be a loss again after 'ABC Learning' heavy loss.

It is time to suck more money from Singaporeans..........

 

[2standards]

And who is going to hold them accountable?

A lot of Singapore money are lost in the financial turmoil, thanks to investment by GIC & Temasek.

For your info, Temasek did not take up BOA (aka Bank Of America) offer for Merryl Lynch shares. In other words, the average price paid by Temasek for ML's shares may not be US$23 as reported. Likely to be a loss again after 'ABC Learning' heavy loss.

It is time to suck more money from Singaporeans..........

 

[Zombie]

Best logical reply ever from EMA

Make it fairer, more transparent

I REFER to last Saturday's letter, 'EMA explains spike'.
To the question on why, even though 80 per cent of our electricity is powered by natural gas, electricity prices are pegged to oil prices, the Energy Market Authority (EMA) replied that, because there is no Asian benchmark for gas prices, oil prices are used instead. In other words, it is not the actual cost of raw material (gas) that is used in computing electricity prices.

Surely the power generation companies know exactly how much they pay for natural gas. Is it not possible to determine electricity prices more accurately, rather than stick to 'this is what we have been doing all along since 2004, so we will continue to do it'?

Another issue this price increase has brought up is transparency. I was unable to find anywhere the formula to determine these prices. Perhaps the power companies should be required to publish their raw material prices, overheads and margins on their websites, so the public are kept up to date.

With privatisation of electricity, is there still a need for a 'one price for all' approach? Let the power companies figure out how best to obtain the lowest-priced raw material (using spot, one-month or three-month futures, or private agreements with gas producers) and reflect it immediately in monthly bills. This will allow competition to increase efficiency. EMA should play the role of moderator to ensure there is no cheating or collusion.

Like most Singaporeans, I am not asking for subsidies for utilities. I am just asking for fair and transparent pricing.

The contract to buy natural gas is for a very long period like 15-20(?) years and the pricing method is already fixed in the agreement.

 

[2standards]

And if the profit margin decreases, they will then say something like the pricing method no longer reflects the market condition. Maybe they will benchmark the gas to gold.

The contract to buy natural gas is for a very long period like 15-20(?) years and the pricing method is already fixed in the agreement.

 

[virus2977]

Singapore goverment is u die is your business not my business.They just want to kill own pple.Thank to 66.6%!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[2standards]

If they let you die, how can they get more taxes out of you? They will let you live, but you will feel like dying.

Singapore goverment is u die is your business not my business.They just want to kill own pple.Thank to 66.6%!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[Zombie]

And if the profit margin decreases, they will then say something like the pricing method no longer reflects the market condition. Maybe they will benchmark the gas to gold.

Pegging to fuel is a standard contractual term. Japan and Korea are all doing that.

The uncertain parts are
1) which fuel are they pegging to, and
2) I think since there are no trading in open market here(?), how they get the rates.

 

[virus2977]

Pegging to fuel is a standard contractual term. Japan and Korea are all doing that.

The uncertain parts are
1) which fuel are they pegging to, and
2) I think since there are no trading in open market here(?), how they get the rates.

I think is time to over turn PAP.............enough is enough...........

 

[sherrry]

Welcome to sg, what goes up will almost never come down, and that applies for retirement age, applicable to the blood pressure too.

 

[2standards]

When it is down to $20, let's see if they still claim that it is a "standard contractual term."

Pegging to fuel is a standard contractual term. Japan and Korea are all doing that.

The uncertain parts are
1) which fuel are they pegging to, and
2) I think since there are no trading in open market here(?), how they get the rates.

 

[po2wq]

Will electricity still be pegged to oil when it is down to US$20 per barrel?
...

no worries la ... if oil prices go down, dey wil find sum other ting dat goes up ...

 

[The_Latest_H]

ExxonMobile has been in collusion with the PAP government for a long time. That isn't gonna change as long as the PAP remains in charge and believes that they can charge people, and bankrupt people due to the argument of "market prices".

I mean, bankrupting people because they cannot pay utilities. Its like if you can't pay for your health care costs, you become bankrupt, and the government gives you Chapter 11(or any similar bankruptcy law locally; Chapter 11 is the one referring to bankruptcy in the US), and says you're out and you're dead.

It doesn't make sense. People, if they overspent on their credit cards, sure there's an argument. But when people can't pay for utilities and/or healthcare, that doesn't mean they should go kaput and become an outcast.

 

[makapaaa]

Best logical reply ever from EMA




Make it fairer, more transparent

I REFER to last Saturday's letter, 'EMA explains spike'.
To the question on why, even though 80 per cent of our electricity is powered by natural gas, electricity prices are pegged to oil prices, the Energy Market Authority (EMA) replied that, because there is no Asian benchmark for gas prices, oil prices are used instead. In other words, it is not the actual cost of raw material (gas) that is used in computing electricity prices.

Surely the power generation companies know exactly how much they pay for natural gas. Is it not possible to determine electricity prices more accurately, rather than stick to 'this is what we have been doing all along since 2004, so we will continue to do it'?

Another issue this price increase has brought up is transparency. I was unable to find anywhere the formula to determine these prices. Perhaps the power companies should be required to publish their raw material prices, overheads and margins on their websites, so the public are kept up to date.

With privatisation of electricity, is there still a need for a 'one price for all' approach? Let the power companies figure out how best to obtain the lowest-priced raw material (using spot, one-month or three-month futures, or private agreements with gas producers) and reflect it immediately in monthly bills. This will allow competition to increase efficiency. EMA should play the role of moderator to ensure there is no cheating or collusion.

Like most Singaporeans, I am not asking for subsidies for utilities. I am just asking for fair and transparent pricing.

Just like ministerial pay, expect them to cum up with a new "formula" to peg it to the x most expensive commodities. If gold turns out to be the most expensive when oil becums al cheapon, no prize for guessing what the wicked Familee will used as the benchmark.

 

[rodent2005]

The contract to buy natural gas is for a very long period like 15-20(?) years and the pricing method is already fixed in the agreement.

So, is that my problem?

 

[Zombie]

So, is that my problem?

Yes, if you using power in Singapore.

 

[Conan the Barbarian]

Best logical reply ever from EMA




Make it fairer, more transparent



Like most Singaporeans, I am not asking for subsidies for utilities. I am just asking for fair and transparent pricing.

Haha, when CSJ ask for transparency and "where's the money?"
These very Singaporeans condemn him for being rude. And now they want to complain about transparency.

They never realize.... "when they come for me, who is going to speak up for me?"

They deserve every price increase they get.

 

[Sayn]

Sometimes i wonder if singapore really exists...

To the question on why, even though 80 per cent of our electricity is powered by natural gas, electricity prices are pegged to oil prices, the Energy Market Authority (EMA) replied that, because there is no Asian benchmark for gas prices, oil prices are used instead.

Does any one see the logic behind this, I believe oil prices are in general much higher than LPG prices.

So even if its pegged to the forward pricing of oil, how is the formula calculated, anyone knows.

i have been to the EMA website and it is really hard to get information out of it

sayn