A third reply from EMA
EMA is replying to the rising criticism of the electricity hike today. But again it fails to address the issue of forward buying and spot buying as well as the composition of natural gas in the tariff formula. Oh, in the letter it said that all Singapore's electricity is generated by imported fuel! Does this include natural gas or oil alone? The people deserve to know what is in the formula. The EMA must also put into system a process whereby they can opt to buy spot when future is too high. If their buying process is so rigid to only buy using one method and ignoring the alternative of buying low, then it is not doing justice to the people. Another point is that the hedging or buying forward system sometimes lead to losses and sometimes to gains. When EMA gains, they keep quiet and happily enjoyed the bigger profits and big bonuses. When they hedged wrongly, the loss is immediately passed to consumers. This is unfair. In businesses, there are ups and downs and EMA must take in the profit and losses in its stride instead of one way, always win and no losses.