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

[Sayn]

The explanations given by EMA seem to differ, depening on whether you are reading the english version or the chinese version.

http://www.ema.gov.sg/FAQ/sm041008.pdf
Take a look at the answers in chinese.

Unless my chinese is really bad, here is the translation.
Q1: Crude Oil and Petrol prices are going down so why are there an increase in the Electricity prices.
A1: In the press ordinarily, when the price of oil is mentioned, it refers to that of oil derived from the ground, namely crude oil.
Prices at the petrol station for petrol are based on the price of Crude Oil. When Crude oil prices drop, petroleum and kerosene prices will decrease. However or but, eletricity is based on the price of RanYou as a basis. RanYou is refined crude oil.

Sayn: i am really getting confused here, this article is claiming that the ranyou pricing is different as it is refined. So they are saying that Petrol and Kerosene exists naturally and do not need to be refined? What type of answer is this.

 

[Zombie]

Sayn

柴油 = Diesel
燃油 = Fuel

It says
Petrol and Diesel based on Crude Oil (unrefined)
Electricity based on Fuel Oil (refined)


*only my bad spelling - corrected diseal to diesel*

 

[Nomad]

dream on.
when the oil/fuel went down,they will still come up with some reasons for not pegging to it or to maintain the price.

 

[The_Latest_H]

Sayn

柴油 = Diseal
燃油 = Fuel

It says
Petrol and Diseal based on Crude Oil (unrefined)
Electricity based on Fuel Oil (refined)

Well, isn't petrol a type of refined oil? Even diesel is, to a certain extend. No car or plane can move if the oil's crude anyway.

 

[rodent2005]

Yes, if you using power in Singapore.

You don't get it do you? How much they pay for their raw material is not my problem and therefore cannot be used as an excuse to increase price to me. No wonder sinkees are such push-overs, you people can't think logically.

Sinkees must not accept the excuse that oil prices have gone up and therefore it is right that electricity price must go up.

If the PAP govt won't listen, then sinkees will have to put more opposition in parliament who will listen.

 

[Zombie]

Well, isn't petrol a type of refined oil? Even diesel is, to a certain extend. No car or plane can move if the oil's crude anyway.

Petrol, Diesel and Fuel Oil are all refined oil (of different grades) from Crude Oil.

What they mean is that each type of refined oil has its own markets besides the crude oil market. Power is pegged to the fuel oil market which may not follow closely to the crude oil market.

 

[Zombie]

You don't get it do you? How much they pay for their raw material is not my problem and therefore cannot be used as an excuse to increase price to me. No wonder sinkees are such push-overs, you people can't think logically.

Sinkees must not accept the excuse that oil prices have gone up and therefore it is right that electricity price must go up.

If the PAP govt won't listen, then sinkees will have to put more opposition in parliament who will listen.

Ok, I don't get it. From the financial perspective, since when you have contracted to have your power bill based on fixed rate?
I explained how it works, doesn't mean I like the idea. So please don't be a smartass.

 

[myjohnson]

dream on.
when the oil/fuel went down,they will still come up with some reasons for not pegging to it or to maintain the price.

Maybe they will peg it to the price of GOLD?

 

[Zombie]

dream on.
when the oil/fuel went down,they will still come up with some reasons for not pegging to it or to maintain the price.

Natural gas price is pegged to Fuel price. This is industry practice and that was contractual term which I mentioned earlier.

Tariff pegging (through Natural gas) to Fuel price, is a corporate decision.

They are not the same thing.

 

[diversifyx2]

Tan gu gu lah

 

[makapaaa]

>>>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...<<<

LATEST: ERPee is needed to save lives in KJE!

 

[2standards]

So will they still peg to oil when it is down to $20 per barrel?

Petrol, Diesel and Fuel Oil are all refined oil (of different grades) from Crude Oil.

What they mean is that each type of refined oil has its own markets besides the crude oil market. Power is pegged to the fuel oil market which may not follow closely to the crude oil market.

 

[2standards]

When it is for the benefit of the bottom line, it is called "industry practice." When it is no longer so beneficial, we say we have our own method of computation because Singapore market is "unique."

Natural gas price is pegged to Fuel price. This is industry practice and that was contractual term which I mentioned earlier.

Tariff pegging (through Natural gas) to Fuel price, is a corporate decision.

They are not the same thing.

 

[Einfield]

"ExxonMobile has been in collusion with the PAP government for a long time"

My car spec say fuel tank capacity 35 liters but I can pump 37 liters inside, is it possible they makan every car 1-2 liters, that will
be a real day light robbery. Since oil cartel sleep with the Gov, we can never catch them as the org that provide the calibration standard is also gov own.

 

[2standards]

There is a standard for SMEs. Another for big fat oil companies. That is the real world

"ExxonMobile has been in collusion with the PAP government for a long time"

My car spec say fuel tank capacity 35 liters but I can pump 37 liters inside, is it possible they makan every car 1-2 liters, that will
be a real day light robbery. Since oil cartel sleep with the Gov, we can never catch them as the org that provide the calibration standard is also gov own.

 

[wikiphile]

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.

power pegged to LPG prices, LPG pegged to fuel oil prices, Fuel oil is expensive and has dropped to USD 450/MT last friday, so what the hell is going on? Spot is now cheaper than futures, obviously our 'top talents' are sorely lacking in mathematics skills

 

[2standards]

One thing is for sure. It is not coming down as fast as it is going up. And to depend on CASE to make a difference is like trying to stop a fire with paper towel

power pegged to LPG prices, LPG pegged to fuel oil prices, Fuel oil is expensive and has dropped to USD 450/MT last friday, so what the hell is going on? Spot is now cheaper than futures, obviously our 'top talents' are sorely lacking in mathematics skills

 

[2standards]

Just the composition of the STI group of companies have been changed a few times to maintain a respectable level.

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

 

[DIVISION1]

Utility tariffs will reflect market price of fossil fuels. This does not preclude an introduction of conservancy tariffs to encourage Singaporeans to use less fossil fuel energy to save the environment.

 

[2standards]

Singapore serious about going green and saving the environment? Like building 2 CNG stations after it has been introduced for ages.

Utility tariffs will reflect market price of fossil fuels. This does not preclude an introduction of conservancy tariffs to encourage Singaporeans to use less fossil fuel energy to save the environment.