Cut power use - scrap high energy bulbs
Reggie J, The New Paper 16 Oct 08;
SO, we have to put up with a huge increase in the electricity tariff, even if oil prices are actually at or below the levels they were a year ago.
And Singapore Power has just made a profit of more than $1 billion, according to figures on its website.
True, we have been told that the electricity pricing is based on forward fuel oil prices, but this is a time when householders have to tighten their belts.
There are any number of stories in this concrete jungle of families trying to make ends meet and cutting down on non-essentials. Many can't afford to pay utility bills and are on pre-pay meters.
Consumers are now being encouraged to fork out $160 to $280 for a gadget that may save them up to 20 per cent of their bills. But the very vulnerable don't have that kind of loose change.
How about the authorities distributing these gadgets to the needy for free?
There is an urgent need to reduce electricity bills, and the current subsidies and vouchers are not enough.
This is important not only for the poor, but for the environment as well.
And for both, it is time perhaps to phase out incandescent light bulbs.
They are being banned and replaced with compact fluorescent bulbs in many countries. These cost more but last longer and use far less electricity.
In Australia, restrictions on the import and sale of incandescent bulbs will begin to take effect next month.
High-energy light bulbs are to be banned in EU countries in 2010.
One UK power company, wanting to be seen as green, recently sent every customer a four-pack of energy-saving bulbs, delivered to the door, free.
Britain's biggest supermarket chain, Tesco, had a one-day special selling these bulbs for just 2 cents each (1 penny), limiting each customer to 12. There was not a bulb left in any of its 424 stores after three hours.
Perhaps the National Climate Change Committee can work with SP Services on some similar initiative.
It will show how serious they are about reducing greenhouse gases and how they care about those in need.
With the credit crunch biting from all sides, there has never been a better time to cut power use. Spread the word and see Al Gore's An Inconvenient Truth.
# The writer is a former Singapore marketing professional
S'PORE POWER CHARGES NOW DEARER THAN IN U.S. OR FRANCE
Billing consumers isn't the only way
Letter from Bruno Serrien, Straits Times Forum 10 Oct 08;
THE recent hike in electricity tariff of 21 per cent has resulted in an increase of 48 per cent in 12 months. Singapore becomes the country with the highest electricity prices in the region and charges its consumers more than countries like the United States and France.
The increase is being justified based on the fact that the electricity price index is being linked to the oil price index. The last increase has been based on oil price futures bought at around US$150 (S$220) a barrel. Oil spot prices are now below US$90 a barrel (40 per cent).
Eighty per cent of Singapore's electricity is being produced from natural gas (and not oil) piped in from Malaysia and Indonesia. I assume long-term gas contracts have been negotiated at decent prices protecting the end consumer in Singapore. Why not link electricity pricing to oil futures and not to long-term gas contracts?
Energy production and distribution is a highly regulated environment operating as a monopoly. Regulators have to create a mechanism which gives citizens adequate protection against worldwide oil and gas speculation followed by irrational price hikes. They are not doing enough by simply passing the bill to the consumers.
A combination of economic downturn, high inflation and skyrocketing energy prices may prove too much to swallow for the lower income class.
Regulators, producers and distributors have a duty to protect the nation from one of its greatest challenges: Energy dependence. Therefore, we cannot continue to import and burn gas, oil and coal, or depend on others. A master plan to produce energy from sun, water, wind and nuclear power is crucial in safeguarding the nation's independent energy future.
The current subsidies will only have a short-lived effect and will have almost no effect on the reduction of our national energy bill.I am suggesting a combination of tax incentives, rebates and subsidies for households buying energy-saving appliances or making their houses more energy-friendly. It would encourage many of us to replace our energy-hungry washing machines and air-conditioners with other 'green, energy-friendly-certified' appliances.
Landed properties could be turned into energy-producing entities instead of energy consumers. HDB should set the example (even if the monetary side of the investment is not that attractive) to go for highly efficient energy housing.
A double impact could be achieved by implementing a consumer pricing, penalising high consumption, but rewarding low-consumption energy savers. Many of our neighbours have already implemented such schemes.
Why electricity price hike was needed
Straits Times Forum 15 Oct 08;
IN HIS letter last Friday, 'Billing consumers isn't the only way', Mr Bruno Serrien noted that the electricity tariff has increased by 48 per cent in the past 12 months. But this must be seen in the context of the rising fuel oil price, which has more than doubled during this period.
As Singapore imports all its fuel, we have pegged the tariff to the cost of the fuel, so electricity is priced properly and wasteful consumption is minimised. The increase in the tariff this quarter was necessary because of the 38 per cent spike in the forward fuel oil price from US$83 to US$115 per barrel between April and July this year.
Mr Serrien's claim that Singapore has the 'highest electricity price in the region and charges... more than countries like the US or France' is inaccurate and fails to account for differences in the availability of indigenous fuel and pricing policies across countries. For example, France generates 80 per cent of its electricity from nuclear energy, which is unaffected by the high oil price. On the other hand, Japan relies heavily on imported oil and gas, and charges a higher electricity price than Singapore. Within the US itself, there is a wide variation across the states and some have electricity prices which are comparable to or higher than the rate in Singapore.
Mr Serrien also suggested that Singapore should move towards energy independence. But as a small country, Singapore has limited alternatives to fossil fuels. Hydro, geothermal and wind power are not available here. Nuclear energy raises issues such as safety and disposal of nuclear waste which have to be managed. Solar power has some potential, but realistically this cannot replace more than a small proportion of our energy needs. Solar is also more expensive than electricity generated from natural gas, although the technology is still improving and costs are gradually coming down.
We agree with Mr Serrien that regulators should create mechanisms to protect consumers instead of simply 'passing the bill' to them. This is why the Energy Market Authority has focused on restructuring and liberalising the electricity market, to drive efficiency gains and ensure competitive pricing of electricity. The Government has also set up the Energy Efficiency Programme Office to design and implement energy efficiency programmes across different sectors. Going forward, we will continue to do our part to help households conserve energy and save on their electricity bills.
Jenny Teo (Ms)
Director, Corporate Communications
Energy Market Authority
