6/20/2019

Can retailers sell cheaper that producers of electricity?

How can electricity retailers offer cheaper electricity than SP Group?

Retailers in the Open Electricity Market are either the retail arm of power generators or independent retailers which buy electricity in bulk from power generation companies in a wholesale market where prices change every 30 minutes depending on demand and supply....

Retailers are also able to customise price plans, including the bundling of other services or products, and can impose contract lock-in periods or early termination charges....

As with energy markets overseas, several retailers are likely to be successful in the long run, said Professor Subodh Mhaisalkar, executive director of the Energy Research Institute at Singapore's Nanyang Technological University.

Companies have to innovate and offer differentiated services in order to adapt as the market evolves, he added...

The prices offered by retailers will change as the underlying cost of energy changes.

“While price may seem the most important factor for now, consumers must understand that lower prices today are not a given in the long term regardless of whether you stay on the current scheme or change to a new retailer,” said Geneco’s Mr Low.

Read more at https://www.channelnewsasia.com/news/singapore/how-do-electricity-retailers-charge-lower-prices-than-sp-group-11208792

The above extracts from Channel News Asia were used as explanation for the recent intiatitves to have more alternative retailers selling 'cheaper' power to the users. One simple question, if the retailers can sell cheaper without the production processes and cost, why can't the producers of electricity sell at the same price as the retailers or even cheaper? The retailers now have excess cost in marketing and sales that needs to be paid and can sell cheaper? This is an economic miracle. The added manpower must be added cost, cannot be free, must come from somewhere. And the retailers are not charity organisations, they can sell cheaper and make a profit?

Another strange thing from the discussion is the cost of natural gas that was used to produce the energy and the computation of the selling price that included oil prices that were not part of the production cost. Slimy isn't it? Read this,

'The energy cost, or cost of imported natural gas, is tied to oil prices by commercial contracts, which change depending on global market conditions. It is based on the average price of oil and the average SGD/USD exchange rate in the previous quarter.'

Read more at https://www.channelnewsasia.com/news/singapore/how-do-electricity-retailers-charge-lower-prices-than-sp-group-11208792

And here is another report made in different circumstances, the failure of Hyflux in its entry into energy production to highlight how much the price of gas has fallen, meaning lower production cost, but not much of this benefit was transferred to the retail users.

'Due to oversupply of gas in the market, the projected reserve margin for electricity demand in Singapore increased to 70 per cent in 2017 from 30 per cent in 2011, it said. The reserve margin measures the excess capacity at peak electricity demand.

This resulted in the fall of the wholesale electricity price.

"The average wholesale electricity price has dropped from about SGD220 per MWh in 2011 when the Tuaspring project was awarded to an average of SGD81 per MWh in 2017, resulting in significant losses from electricity generation," the letter said.'

Read more at https://www.channelnewsasia.com/news/business/olivia-lum-deeply-saddened-investors-sias-dividends-salary-11247804

If we put all these facts together, it means that the producer of energy has gained a lot of savings from lower gas prices and they could sell energy to the people at a very cheaper price than it is. There is no need to have more retailers, with more marketing and sales costs, to sell energy cheaper to the consumers. Right?

What do you think is the scheme of things?

'An elderly woman who lived near me met me at the bus stop.
She said – Mr. Tan, I agree with what you wrote about the retail electricity supply. As an elderly person, I do not know what to do choose my electricity supplier. Why don’t the government just get Singapore Power to reduce the electricity price, instead of asking us to look for our supplier. I find life to be very complicated....

I also read that some electricity suppliers are exiting the market, because it is too costly and too wasteful to be marketing the supply.
What a wasteful practice. What an incompetent government.'
Tan Kin Lian

27 comments:

Anonymous said...

The root of so many Sinkie problems and frustrations is the 69.9% !

Anonymous said...

Logic tells us this is obviously a lie. A scam. The real reason is to enable more cronies to make some money and become rich or richer, so that they will be beholden to their Lord.

Anonymous said...

Aiyah, in the near future the electricity may even drop drastically when the advent of Renewable energy ( such as solar energy, wind, & other new tech sources ) comes into the market. The D day of fossil fuel may be up or run dry some days but the solar,wind & others r abundance, who knows one day it can even be FREE, but then the G wud wanna hv a bite of this cake earlier in " What's wrong with collecting more monies?" slogans.

Anonymous said...

Whatever the underlying reason for switching from one single supplier (Singapore Power) to multiple retailers, the gut-feeling is that something is not right.

Nobody in his/her right mind would do such a stupid thing.

It's similar to scratching one's left ear with the right hand going around the back of the head instead of lifting up the left hand to scratch the left ear directly.

Ⓜatilah $ingapura⚠️ said...

@ capitalism works, crony capitalism makes more money:

Free and open markets for consumer goods and services usually result in better quality and better value for money due to competition. That's the THEORY, and when it works, all is good.

However where there is money and DOMINANCE involved, human beings eventually will game the system, break the rules, behave in “bad faith” and resort to all sorts of unethical and dirty tricks.

Smarter humans will organise themselves and their kaki-nangs---bankers, lawyers, politicians, occasionally organised criminals.

Their “shorter cut” is just to engage in Crony Capitalism. They you can do whatever the fruck you like, screw the customer, screw the investors, bribe the authorities in other cuntries to give you “the edge” in their markets, plunder and pillage to your heart’s content, have sex with the world’s most attractive people, then retire obscenely rich and famous….or maybe run for political office yourself.

look4kc said...
This comment has been removed by the author.
Anonymous said...

I think f he is not careful sure one day Kena invited to lim Kopi then Kena sodomized. Poor guy😰

Anonymous said...

PAP elites need to explain.

If I can save $80 per month on my electricity bill switching from SP to Kep Elec, that's $960 savings per year - meaning I've been overcharged $24,000 over the past 25 years living in the same house ??

Anonymous said...

Hi all

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Anonymous 828am is 108% correct!

Anonymous 828am is 108%. correct!

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Anonymous said...

Iran has just shot down a US Navy drone inside Iranian airspace.

War has started.

Anonymous said...

Make America Great Again!

(which means America was great and now it is no more great because Whitemen have invaded and occupied their land, and enslaved them, causing all the miseries and sufferings.)

And the same Whitemen are now invading many other countries and causing more miseries and sufferings!

Men-in-White are immitating the Whitemen?

UG said...

KAKAKAKAKAKAKAKAKAKAKA. I am luffing at old leaders. Kee chiu say some one from workers party work in classified unit. Woo hoo. Who want go workers party meet the people session slam chair? And than I see some Tans like from pap related, to opposition related? Si bei confuse leh. Who do I support ah? Should I buy ang moh stuff or ah tiong stuff? Very confuse. Election I better stay at home. I am a daft sinkies. Got little india riot, got smrt driver strike. Give them citizenship. Give more to FT. We are 10 years behind hong kong right? Our house really get smaller leh. But the cages problem from ang moh time to ah tiong time all along have is it? So who is the problem? Eh wait, last time Ong Teng Cheong already got strike. And in PAP time, not like the Tans become opposition got strike. And the house very big last time. So our leaders last time more li hai than hong kong leaders. We got hong tou jing also. Same cantonese but more li hai than hong kong one. Woo hoo. Now getting smaller flat. I think the most honest politician is Ong Teng Cheong right? Die young is good people mah. Old people say one. Not I say one. Sing alleluia to the lord. Amitabha. Tian yi ah, I am born in Singapore.

UG said...

Hong Kong and Singapore people must wait for another Ong Teng Cheong to have strike. Ownself strike is useless. Must have li hai one like Ong Teng Cheong. And the Ang Moh please dont call and ask what happen. This is what happen when there is not strike. Make America Great again. It is getting lousy, so must make it great right? KAKAKAKAKAKAKAKAKA. Daft ang moh. Daft ah tiong at tian an men. Daft honkies. Hum ji sinkies. KAKAKAKAKAKAKAKAKA. Pope Francis and Da Lai Lama should give Ong Teng Cheong award. I think he got more chance of becoming saint right?

https://www.youtube.com/watch?v=ZJoG--CAZYk

Next time air con I buy Japan one, Daikin or Mitsubishi Electric? Laptop buy Taiwan one, Acer, Asus or MSI? Car buy Japanese made one? Mobile phone buy Korea one, Samsung or LG? The rest of stuff like TV, Fridge, Washing Machine buy LG? Woo hoo. No Ang Moh or Ah Tiong brand. Wireless router mostly Taiwan brand right? Bye bye Ang Moh or Ah Tiong. See the trade war make me du lan. Buy any country brand except Ang Moh or Ah Tiong. KAKAKAKAKAKAKAKAKAKA.

https://en.wikipedia.org/wiki/Chiang_Kai-shek
No wonder Mr Chiang chao lang. I see trade war, I also du lan. Dont buy Ang Moh or Ah Tiong. When is hongkies or sinkies creating their own stuff? We are same leh, we are kies, alway kena kies, kena aim. Si bei chiam. Dunno who aim us. Is it Ang Moh Tua Kee like people say Men in White? Than they are super daft leh, cos now they need Make America Great again. Why is it our fault ah? Why we kena kies ah? Our life very chiam leh, always tio aim for no reason.

UG said...

https://en.wikipedia.org/wiki/Chiang_Kai-shek

As you all know I was an orphan boy in a poor family. Deprived of any protection after the death of her husband, my mother was exposed to the most ruthless exploitation by neighbouring ruffians and the local gentry. The efforts she made in fighting against the intrigues of these family intruders certainly endowed her child, brought up in such environment, with an indomitable spirit to fight for justice. I felt throughout my childhood that mother and I were fighting a helpless lone war. We were alone in a desert, no available or possible assistance could we look forward to. But our determination was never shaken, nor hope abandoned.

Wah seh. As a daft and hum ji sinkies. Now I see Ang Moh and Ah Tiong things turn off leh. History repeat is it? No wonder Mr Chiang chao lang? Heng ah. I live in Singapore. I can buy Taiwan brand things. Taiwan people suffer create things long ago for me to buy. Sinkies too weak ah. Have not create things. Jiak Liao Bee. Eh wait. Our on top is Perak or Penang leh. KAKAKAKAKAKAKAKAKAKA. Chio Si Lang. Oh ya. Mr Tan Cheng Bock is hokkien appear. Wah seh. History repeat is really a phrase. Hoot ah. Maybe next election I go vote opposition. KAKAKAKAKAKAKAKAKAKAKAKA.

UG said...

Wah seh. Is history repeating ah? Maybe we must depend on Hokkien Bock to bock people down and save the poor leh. Teochew ah hia like history liao thanks to Perak Kee Chiu Lau Chui while brushing teeth. KAKAKAKAKAKAKAKAKAKAKAKA. Singapore politic like see children play in playground. You dunno too luff or too cry. I got super power. I can knock down things. KAKAKAKAKAKAKAKAKAKAKA. People create things to use, kids want to knock down things. Than peasant pick up the pieces. Oppz. Not peasant type wrong. Than parent pick up the pieces. Please ask Prof Ma come find me. I need more education. KAKAKAKAKAKAKAKAKAKAKAKA.

Anonymous said...

UG kakakakakakakakakakakaka I think u not taking your nedicine again. Time to ask someone to sodomize u jialat jialat tonight to improve your condition tonight. Quat quat sodomy needed Lar for u😀

UG said...

Who gave the name hongkies or sinkies ah? Why we kena kies? Knn. Why ah? Why we kena kies? Who gave us this name? Is it Penang one or Perak one? Michelle Yeoh from where ah? Singapore got Penang police? Hong kong police from where? Is it from Penang? Than speak cantonese? Like gurkha like that, deploy here deploy there? A place that create mercenary soldier for the elites? The elites already plan the world already? So peasant fight for what? Just die. Or Hong Kong police is created in Guang Zhou, Macau or Hai nan? Now got technology liao. We can track them down. KAKAKAKAKAKAKAKAKA. WWW must be created by angel to save us is it? That why the G in many country is afraid is it? KAKAKAKAKAKAKAKAKA. How to defeat angel? Impossible. Not I say one, read bible.

UG said...

Quat quat sodomy kan kar ching is outdated already. Now upgrade liao. Do a dab and tu arm pit. No wonder no talent. Because you old leaders cannot connect with the young. Keep kpkb. Say people strawberry. In the end dunno how many ex pap end their pap life and become opposition. Is a good thing. Wait for LKY to die right. KAKAKAKAKAKAKAKAKAKA. I heard that in coffee shop when I was very young. But when he die, the iron rod is still hot, should just break it. Now the gao chao over liao. I will just stay at home and eat pop corn. KAKAKAKAKAKAKAKAKA.

Oh ya. For some people that dont like Japanese. Hyundai, Kia, LG, Samsung is here to save you. Actually your whole house can have LG stuff. I quite like the idea. But the laptop is way too ex. So those old folks dont like this, dont like that, just support China. Can China faster build a lot of good things like LG and sell cheaper? Like the cheap Huawei super li hai camera in popular. I got a shock of my life. Apple sell so ex also.

UG said...

China and Taiwan not happy with each other but Huawei modem use Asus router. How ah Uncle Red Bean? A lot of people need to go reservist one leh. Need to log in to NS portal. Any Ang Moh have any idea how? KAKAKAKAKAKAKAKAKAKAKA. How to Make America Great Again?

UG said...

http://www.tremeritus.net/2019/06/20/learn-by-experiment/

Mr Tan. Use Duck Duck Go search. Chun one. It is for Ah Pek like you and me. I also find Google confusing at times.

UG said...

If the strawberry cao mei laugh at you and never invent Huawei. Ask Lee Family why. LKY WILL also dunno. We can just luff and say each other and complain. It is our hobby now. Never see what is going on in the social media meh? Throw 6 smoke bomb also can promote. Ask Lee Family why loh. Endure long enough, strawberrymon will evolve like pokemon become psyduck. That why you must use duck duck go. And now people like to gan kar ching and sodomise like duck. Which famous Lee family just gao eng ah? Wah seh. Looks like some Feng Shui is cooking Mr Tan?

UG said...

Ong Teng Cheong cannot do anything, what can Tan Cheng Bock do? How naive. Just die peasant. Or get your pay than just go home watch pokemon psyduck evolve into golduck and wait for your turn. 80 20 rule so many years for 50 years. So funny.

Anonymous said...

UG kakakakakakakakakakakaka I think u really need help. Go to Jalan Besar quickly even early in the morning like 2 am, some sailors will still be around and ask a group to sodomize you as u need more than one dose of medicine. 😀

Virgo49 said...


Conclusion

If you happened just for the sake of changing Operator of Elect Supply for a sake of saving some pennies.

After going thru the hassles of documentation and also un cases of changing physical equipments, that Operator closed down in just a couple of.months then you go thru Hell again.

Pennies wise, pounds foolish

Anonymous said...

Have some COMMONSENSE.
Retailer
selling cheaper than PRODUCER?
Is it not the Same as
putting the cart before the horse or bull ?
IT
IS JUST BULLSHIT.
Period.
ONLY THE DAFT GETS TRICKED AND
CONNED.

Virgo49 said...

Hi Anon 10.12

Thought recently one such operator closed shop in news.

Anonymous said...

Commonsense
is not
common with
the Daft.