Electricity Tariffs up again
choongyong.koh June 18th, 2007
Just realised that the quarterly revision of electricity tariffs is due again. http://www.singaporepower.com.sg/publish/PR/Files/Approve/PR15_6391.html
It still puzzles me that, since 80% of our electricity is generated using natural gas, why is it that the regulated electricity tariffs are pegged to the price of future fuel oil price? From what I see it is just to make it look good. “See, an increase in 20% of future fuel oil prices only results in 8% increase in your tariff”.
Granted that there could be some relationship between the price of natural gas and fuel oil price, but the fundamental question is: “How is the cost of electricity generation derived in Singapore?” There has been no figures released on the breakdown for the various cost components of electricity generation, so it is anyone’s guess whether it is justifiable to increase the electricity tariffs by 8% with an increase in 20% of the future fuel oil prices.
Another thought is that, with the NEMS (National Electricity Market of Singapore) being the market where electricity is bought and sold, is SingPower’s ‘cost price’ actually a function of the price of electricity in the NEMS? If so, the cost price is even one step more removed from the quoted reason of increase in fuel oil prices.
All I am asking is: when future fuel oil price seems so far removed from the actual cost of supplying power to the consumers in Singapore, why quote that as a reason? Why can’t we have more transparent information that is more convincing?
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