Saturday, November 01, 2008

Singapore Power explains increase of tariffs in Q4

SINGAPORE: The uproar began slightly over a month ago when SP Services announced that electricity tariffs would increase 21.5 per cent in the last quarter of this year.

Consumers, already burdened by record inflation, saw red and pointed to profits of S$1.086 billion that SP’s parent company, Singapore Power, made last year.

How would the poor cope, and why couldn’t Singapore Power use some of its profits to absorb the cost, many asked in newspaper and Internet forums.

But the company remained largely silent, leaving market regulator, the Energy Market Authority (EMA), to respond to news coverage and readers’ letters.

On Friday, Singapore Power broke the silence and launched a spirited defence against public anger.

"We have nothing to hide," said group chief executive officer Mr Quek Poh Huat in a media briefing helmed by top management.

The key message was this: Blaming SP Services for high tariffs is akin to shooting the messenger.

"If I’m the lorry driver (delivering) goods to your house, and you ask me how come the (price for) a bag of rice has doubled, I can’t explain to you," said chief financial officer Yap Chee Keong.

SP Services does not generate electricity; it transports power from the generation companies (gencos) to end—users, selling to households without any price mark—up.

The transmission charge, together with the fee for billing and reading of meters, makes up 17 per cent of the tariff.

Wah.....very POWER!!! in the end, all these above don't made any sense. SHIT. Just being a messenger ( lorry driver delivering goods ) can also made $1.086 billion a year then I guess we all must be idiots working the wrong line or are they ( the messenger cum lorry drivers ) trying to blow more smoke at us?

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