Whenever something is hiked in Singapore, we get a long justification why it is necessary. In this case, we are told that it is due to the high price of oil. Given that the oil price has collapsed in recent weeks, the explanation has to go a bit further to say that it is based on the "forward" contract and not the spot. But then our electricity is generated using natural gas not oil ....and the explanation is that Singapore signed contracts for natural gas from Indonesia based on the price of oil because the price of natural gas is not easily determined (nobody in govt heard of Nymex Natural Gas Futures?). Nevermind lah...whatever it is, there is a logical explanation.
"The scope for savings is high considering that power consumption patterns show that 40 per cent of households, from one-room flats to landed properties, use more than the monthly average" - EMA chief executive Khoo Chin Hean
"Err...Mr. Khoo the AVERAGE in a normal distribution is the point where about half the people will use more than the average. If people start cutting down we will just have a new lower average with 40% above average! " - Lucky Tan.
Half the people in the class is shorter than the average - there is scope to feed the shorter people more so they can grow taller.....ah...how much do we pay our superscale civil servants to say such intelligent things? But it is absolutely true Singaporeans will end up using less electricity because many cannot afford it anymore. Singapore Power makes about $1B a year and has accumulated enough profits to purchase major power assets in Australia - a country several times the size of Singapore. The real reason behind the electricity tariff increase is that Singapore Power cannot charge less because it cannot afford to make less profits. The oil price is falling yet Singapore Power cannot hold back the increase for a few months....it just has to hike the tariffs even when many Singaporeans already cannot afford electricity before the hike:
The ordinary citizens of Singapore have to keep working harder to fund our GLCs and help to preserve their profits. They can use the profits to acquire overseas assets to create more job opportunities for our elites. The cycle of neverending price hikes has a common theme - Singaporeans pay prices they cannot afford to maintain the profit margins of our GLCs which they cannot afford to cut. Your poverty is their wealth. Your lack of savings is their reserves. While you pinch on food and electricity, our govt losses a few billion on Shin Corp, a few billion on UBS, Citibank....and it can now turn around to tell the people it cannot afford to help you with those hikes.