Electricitiy tariffs hike

Electricity tariffs will go up by 3.3% for Jan to Mar 2011. Data reported in the Today paper shows that there was a 5.4% hike for Jan to Mar 2010, 3% for Apr to Jun, 2.42% for Jul to Sep, a fall of 3.3% for Oct to Dec resulting in a total hike of 7.5% for year 2010. It was also reported that the decrease of 3.3% was due to oil price falling from $102.35 to $95.41 in the third quarter. Since then oil prices have been hovering around $90 or below. Oil price for the last few days maintained at $90 but not exceeding $92. This is still below the $95.41 high in the third quarter. If oil price is holding below the $95.41 mark, why is there a need to raise it by 3.3%? Funny right? I am a little confused.


Matilah_Singapura said...

Relax. In Australia the rises have been from 20% to 64% (yes, that's right) over the next couple of years.

The $90+ oil price won't hold for long. In 2010, the price has been rising Consumption in US is falling but ChIndia the consumption is steadily growing. Also global output is stagnant or falling.

I predicted SGD2.50 gas way back in 2006 when I met a gorgeous energy trader/ analyst from HK at a local watering hole in Tanglin. I'm a bit off as ULP98 is around $2/ litre, but fuel prices are rising, although it might take time to reflect in the current price.

Anyway the trend is rising prices. If you were an energy company, you'd be protecting your ass too.

Anonymous said...

Dun worry....come election - there'll be "help" from those doing papaya dance...

Anonymous said...

Maybe they pegged the E Tariffs to the GDP of 2010 lah.

Kaffein said...

Thanks, Redbean. Exactly my thoughts. The government is always pegging this to that. But I don't see the income of many people being pegged to inflation, let alone just a yearly increase.

The reasons given to Singaporeans often stump me. It's like a take-it or leave-it situation. There is one thing they left out which is vote-it.

I know where my vote-it is going to be pegged. Who knows the tables might turn and they will be stumped instead.

Merry X'mas and blessed New Year.


Chua Chin Leng aka redbean said...

Hi Kaffein, Happy New Year and to everyone here.

Looks like the pegging is like pegging forward. But does not make sense if the third quarter of last year is the norm. Maybe all increases must be in place now before the election period.