10/15/2008
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.
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3 comments:
When they hedged wrongly, the loss is immediately passed to consumers.
Fact or fantasy?
There is no need for an answer(explanation).
The people(consumers) know(knew) the answer, they(the people) just wonder why their wellbeings have been relegated by profit considerations.
Apparently, operation cost could be pare down with spot and forward(future) purchases of fuel, assuming that power generation uses oil. But, the people know that 80% of the fuel used is natural gas which is much cheaper than oil.
Essential goods and services are invariably state run and or manage, and if not, state regulated/controlled. This arrangement is to prevent abuses such as profiteering, using power supply as a mean of threat/weapon against consumers. The Authority has to ensure affordability of this essential supply to the people.
The Issue here is not the hike, it is the ridiculous percentage of 21+% increase. It is unbelieveably high and unacceptable. AND WHEN NATURAL GAS IS USED 80% FOR POWER(electricty)GENERATION, THE INCREASE IS ALL THE MORE UNREASONABLE.
It is so sad that we can only rant and sigh with no power to even reason with the Supplier.
The feelings of being slaughtered and not killed is terribly upsettling.
patriot
My apology to readers;
my previous post should ends with the word 'upsettling' change to unsettling.
patriot
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