Power Points
Letters to the Straits Times Forum 1 Oct 08;
'Is this about the relentless pursuit of profit?'
MR HARVEY NEO: 'Instead of using the price of oil as the reason for the increase, we should first ask whether a monopolistic energy company has been accumulating losses in providing electricity. If it continues to be profitable, why increase the burden of citizens? Is this about the relentless pursuit of profit in privatised enterprises? There is a limit on how much electricity households can cut down. Perhaps there's merit in nationalising energy providers. One common argument against nationalisation is that service standards may drop and the company may become inefficient. But there is little scope for standards to deteriorate in providing electricity, or, for that matter, improve. How does one measure service standards in providing electricity anyway?'
'In retrospect, the glare of the Singapore GP's high-powered lighting seems ironic.'
MR CHUA SHENG YANG: 'As I watched the splendour of the first-ever Formula One night race and read the accompanying plaudits the next day, I could not help but notice the news that electricity tariffs would increase by more than 20 per cent. In retrospect, the glare of the Singapore GP's high-powered lighting seems ironic. Shouldn't power and water remain nationalised and made available to Singaporeans at the lowest cost?'
'Why peg the rate to the oil price, when 80 per cent of our electricity is generated by natural gas?'
MR WILLIAM WEE: 'The Energy Marketing Authority (EMA) stated that the main reason for the increase is the rise in the price of oil. However, 80 per cent of our domestic electricity generation is from natural gas piped in from Malaysia and Indonesia. And the price of natural gas is about 20 per cent of the oil price. Furthermore, the price of natural gas we get from West Natuna was part of a 22-year deal at a price much less than the current price. Why does the EMA peg the electricity rate to the oil price, when 80 per cent of our electricity is generated by natural gas?'
