Posted by: bigtalksingapore | November 6, 2008

Singapore electric suppliers got lots of explaining

Singapore Power is saying that we shouldn’t blame them for the recent price hike.

They are only the messenger delivering the service and bills to us (Attachment #1).

Sound like total BS to me.

Why is it a BS ?

  1. Singapore Power said that their profit is only $423 million last year, representing only 6% return on total asset (ROTA) (Attachment #1).
    And it is small compare to Australia’s Victoria state of 9.6%.
    Can we really do this comparison, considering that the cost of asset (namely land) in Singapore is definitely much higher than Australia ?
    I think it is not an apple to apple comparison.
  2. 80% of Singapore electric comes from natural gas which has fallen in recent time (Attachment #2).
    I’m not a math teacher, but I’m not that stupid.
    Does it mean “Oil related” energy only constitute 20% or less ?
    Are they just trying to make more money while capitalizing on the oil hike ?
  3. For the year end March 31 this year, SingPower made a whopping $1.09 billions on revenue (Attachment #2).
    And they dare to claim that they’re just a simple and innocent messenger.
    If they are really a messenger, they will be be really greedy messenger that not only deliver message, but also extra-charging you for delivering it.
  4. Tuas and Senoka Power plant has already been sold to China Hua Neng Group and Japan Marubeni Consortium (Attachment #2).
    With the recent purchase, look like China Hua Neng and Japan Marubeni is trying to recoup their investment as fast as possible at th expense of consumers.
    And there’s noting the Singapore Government can do.
  5. They said the reason of selling Singapore power plant is to open the market, increase competition and ultimately reduce price.
    Was there other reasons (Click here , especially Attachment #4) ?
    But it looks like a new “Power-fool” cartel is slowly forming.
    Singapore Government’s strategy back firing ?

Attachment #1: Today, 1 Nov 2008, Page 4

Attachment #2: Today, 20 Oct 2008, Page B2


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