Posted by: bigtalksingapore | September 30, 2008

Singapore Public Utilities should rename as Private Utilities

They finally did it, their hands are free.
Free to charge Singaporean whatever they (Fat cat, you can find some example in attachment #10) think is profitable.
We should officially rename Singapore “Public Utlities” as “Private Utilities”.
PUB should become “Private Utilities Board”.

If this were to happen in our neighbour countries like Taiwan and Hong Kong, there will definitely be street protest and condamnation.
But in Singapore, our people will probably grumble a lot but continue to “Pay And Pay”.
I wrote in 8 Jul 2008 about Singapore Temasak Holding Selling Senoko Power inorder to open up Singapore Ultilities market (Click here for previous post).
Looks like they got it all planned out, first open up Public Utilities to private company by saying that it will increase competition and lower your electric bill.
After that, they come in with their electric gun and start zapping everyone in sight.
A few issues to point out here…

  1. They said that the electricity charges is pegged to a three-month forward fuel price.
    This is done so that we get a better deal (Attachment #1). Sure or not ?
    If the fuel price increase more than the predicted price (3 months later), we get a better deal.
    But if the opposite happen, will the power companies get any kind of rebate? And will the rebate tickle down to consumers like us ? Or use as profit bonus for power companies ?
    We all know that fuel (Petrol) are controlled by a small groups of countries who have great influences over the price (By cutting supply).
    As a result, the three month forward fuel price will usually be estimated higher because the sellers is always calling the shot.
    The alternative is to use the spot price of fuel, as was done before 2004 (Attachment #6).
    The question is, are we (consumers) really getting the better deal ?
  2. By the end of next year, the electronic vending system will be introduced to liberate the consumer electricity market.
    But “this may not lead to lower prices. Instead it could lead to more ‘innovative’ packages….” (Quoted from attachment #2).
    If liberating consumer electricity market does not lead to lower prices, why the hell liberate it ?
    And talk about “innovative packages”, first thing that comes to my mind is “Consumer beware !”.
  3. “Over the years, SP (Singapore Power) has become more efficient, hence profiting more from transmission charges” (Quoted from attachment #1).
    More efficient = More profit = More costly to consumers.
    Is there something wrong with this equation ?
  4. “However, they will recieve rebates of between $310 and $330 this year, which will more than offset the rise, said EMA chief executive Khoo Chin Hean.” (Quoted from attachment #6).
    I haven’t hear of any rebate yet, and who is the “they” who will get the rebate.
    Consumer should not rejoice if they get the rebate, cos come next year there may not be another rebate.



Attachment #1: Today, 30 Sep 2008, Page 1

Attachment #2: Today, 30 Sep 2008, Page 2

Attachment #3: Today, 30 Sep 2008, Page 2


Attachment #4: Today, 30 Sep 2008, Page B4

Attachment #5: Today, 30 Sep 2008, Page B4

Attachment #6: My Paper, 30 Sep 2008, Page A2

Attachment #7: My Paper, 30 Sep 2008, Page B4

Attachment #8: My Paper, 30 Sep 2008, Page B4

Attachment #9: My Paper, 30 Sep 2008, Page B1

Attachment #10: Today, 27 Sep 2008, Page 30


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