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[QUOTE=adiemuso--;2496]Edmund,

go look at the definition of forward contracts in the context of financial markets or in this case natural gas. dont blabber. it doesnt makes u look any better.

privatisation is good if you are talking textbook, econs 101. since u mentioned that you have learnt econs you should noe the answer.

however, we live in a real world and thats when the academic theories and ideals of a laissez faire/free market sort of malfunction in the real world. esp when we are talking about infrastructure sectors, high capital industries, with natural high barriers to entry.

so privatisation is supposd to bring in more competition as a result deadweight losses which occur in theoretical monopolistic/oligopolistic markets gets utilised and the industry as a whole becomes more efficient.

however, if you are talking about the price levels per se, there is certainly something lacking in the pricing mechanisms here.

either the corporates themselves are exposing themselves to high levels of costs, in this case gas/oil/watever, and not hedging them well enough or they have been passing off these costs substantially over to the end consumers.

in a pure perfect competitive world, goods producers will find it hard to sell their products when they hiked their price levels. however, apparently in this case, the costs are easily transferred from the producers to us, therefore we are not living in a pure p.c world.

so the questions to be asked should be so, 
are these producers/firms/corporates operating in an efficient manner? if not, what should we as end users do about it? is there a recourse for end users like us? 
Or are these producers/firms/corporates behaving like a monopolistic entity? if so, is there anything the regulators can do about it?[/QUOTE]

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Topic Review (Newest First)

01-07-2009 12:20 PM
quek	Our electricity tariff is going to go up up up again... channelnewsasia.com - Household electricity tariff to go up from July 1
06-12-2008 06:23 PM
1234--	3556 haha...nope. but i have friends at powergrid who explain have explained to me the reality of the situation
06-12-2008 02:21 PM
haha--	3553 1234, you must be from SP Services!
06-12-2008 01:38 PM
1234--	3551 i will reiterate...SP services is not at the top of the food chain (nor anywhere near the top), it just charges consumers whatever EMA states. even the proportion of the charges that SP keeps to maintain the grid, etc is regulated by EMA. this whole thing is EMA's doing and i think they should sort themselves out cos they're doing a bad job.
06-12-2008 10:10 AM
XX--	3550 excuse me, it is better than world class.
06-12-2008 09:34 AM
to 1234--	3549 goes to show how vulnerable we all are. since both ema and sp are players at the top of the food chain, i'm sure they can do something to pre-empt the problem and not just sit there. now that the problem has happened, instead of fixing it, they are still sitting there, at best giving lame excuses eg it's 'standard practice' to use oil prices. or maybe they're so incompetent to think that there's no problem at all? then why pay them world-class salaries to just sit there?
06-12-2008 09:06 AM
1234--	3547 for those who are still unclear, SP services does not set the price. the energy mkt authority (EMA) does so. SP services only collects the money, pay back the generation companies (gencos) and pay SP powergrid (who runs the transmission and distribution network). i think some many Singaporeans are pointing their fingers at the wrong person =)
24-11-2008 12:32 PM
Rei--	3425 whatever it is, many people cannot afford to pay the increase. im guessing many affluent SINs drop by this website but i worry for lower income families or single old aged folk. the subsidies given to them arent that great either. AND my GRC just lost over $2m in mini bonds.jus wana say dats $$ dat can be better spent!
09-11-2008 08:33 PM
whizzard--	3192 The way I see it, its counter-intuitive that electricity tariffs have to be hiked substantially (+21%) when HK reduced its tariff and the price of commodities in general continued its downtrend. I don't subscribe to the argument that it is for maximising profits. What I would hazard a guess is that they could have entered into a financial hedge at the height of the rally in commodities prices earlier and now that commodities prices have dropped, they found themselves in an unfortunate situation where they have locked in at higher prices hence the pass through to consumers. We will never know unless the full details of SP Services' financial statements are published, I guess.
04-11-2008 10:01 AM
adiemuso--	3130 well..it cant be changed...we operate on capitalism... hopefully, the profit being generated are being pumped back into the economy vis a vis green projects, cleaner energy, subsidies for needies. in my point of view, we are seriously lacking in the clean and green aspects. we can definitely do much more.
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