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Old 28-10-2008, 01:15 PM
Edmund--
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Hi Jack,

It's not that I want to be rude or anything. In fact, I'm a friendly person. However, your comments does makes me angry with some of the points that you've raised. There you are going on and on about shareholder's interests, dividends etc. My point is that WHY ARE WE PAYING 3 MONTHS FORWARD OIL PRICES when 80% of our electricity are generated from Natural Gas. Don't tell me they record 3 month forward oil price (which actually is an estimate, and under accounting expense definition and accounting rules, it's not allowed.) into their accounting books? Surely they must have passed entries on their expenses on NATURAL GAS. Is it so hard to based the price of electricity on the cost of Natural Gas. Our "esteemed" minister argues that there isn't a good index to peg the price of natural gas to and therefore they peg it to oil. What the hell man......it's like you are ordering plain water and they are charging you for a cup of coffee for the costs of coffee beans, water, sugar and electricity used for boiling the water. Is it really that hard to set the prices of electricity based on fluctuating prices? They do have to pass entries into their accounting books isn't it? Can't they rely on that information since it will be audited anyway. It should therefore be more reliable to the forward prices formula. At the end of the day, I still don't see why privatizing our Energy markets can bring about more efficiency. Maybe I'm ignorant on such matters and if so, can some one teach / enlighten me on the subject matter? Why privatization will bring about more efficiency and therefore consumers will be better off at the end of the day? I simply cannot wrap my head around that idea.



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