I guess it has been tough on Singapore Power - all those poor Singaporeans who can't pay their utilities bills raking up arrears and squeezing its profits. It is now time to put and end to this. Temasek is selling splitting up our power supply and selling it to 3 different buyers. The official logic is that with 3 players there will be competition and that will "help" Singaporeans to get a good price for their electricity. This is little strange because each of these players control only one third of our electricity supply - what is the incentive to lower tariffs to grab more customers when they have limited capacity? These investors who have paid something like $4B each to buy our generators will certainly want to get the highest return on their investments. Remember these generators were sold to the highest bidders not to people who promised to give Singaporeans the lowest possible tariffs.
For those of you who don't know, there is a "Smart Meter"pilot conducted right now for 1000 households. When the smart meter is installed, you have to purchase credits before you use your electricity at 7-Eleven or online. The meter will allow you to monitor your usage hourly, daily and monthly so you don't "over-use" your electricity. I guess with those investors paying $4B for our power generators eager to recover their investments, I better be watching my electricity usage closely. Thanks to these smart meters, I'll be able to check on my usage hourly.
I'll alway remember what one of our million$ ministers said about why things cannot be inexpensive in Singapore ..... so that Singaporeans don't use what they don't need. That is why the Singapore govt couldn't reduce the petrol tax when petrol prices reached a historic high recently and why ERP has to go up even as the economy slumps. I guess it is the same for electricity now, you really shouldn't use more than what you can afford. For the poor, it will mean candles in the night but can they really afford those candles?
Japan-led consortium to buy Temasek power firm: sources
3 hours ago
SINGAPORE (AFP) — A Japanese-led consortium has won the bid for a Singapore power company being sold by state-linked investment firm Temasek Holdings, sources told Dow Jones Newswires Friday.
Japan's Marubeni Corp heads the consortium and will pay Temasek about 2.5 billion US dollars for Senoko Power, they added.
"Marubeni is the winner," one said. Neither Temasek nor Marubeni spokesmen could be immediately reached for comment by AFP.
Marubeni operates in Japan and globally across a wide range of sectors from food to power.
Senoko is the second of three local power generation firms Temasek is unloading as part of efforts to liberalise the domestic energy market.
Temasek said in March that it had signed a share purchase agreement with SinoSing Power Pte Ltd, a wholly owned subsidiary of China Huaneng Group, to sell Tuas Power Ltd for 4.235 billion Singapore dollars (2.96 billion US).
Temasek's third power generator is Power Seraya.
Last month Temasek reported a record profit of 18.2 billion Singapore dollars for the year to March, and said its portfolio rose in value to 185 billion Singapore dollars.
Temasek has controlling stakes in Singapore Airlines, Neptune Orient Lines and Singapore Telecommunications as well as other major regional firms.
It is one of two Singapore government investment vehicles, along with the Government of Singapore Investment Corporation.
Temasek has invested billions of dollars in troubled US investment bank Merrill Lynch since late last year.