I refer to the article “Electricity tariffs to increase by average of 2.8% from April to June” (Straits Times, Mar 29).
It states that “Electricity tariffs will increase by an average of 2.8 per cent per kilowatt hour (kwh) from April to June, said SP Group.
The increase is mainly due to the higher energy cost of producing electricity, said SP Group in a statement on Thursday (March 29).
In its statement, SP Group said it reviews the tariffs quarterly based on guidelines set by the Energy Market Authority, and that the tariffs have been approved by the electricity industry regulator.”
According to the Energy Market Energy’s (EMA) annual report – its surplus before contribution to the Government Consolidated Fund (GCF) was $2.8 million for the year ended 31 March 2017.
There are at least nine power generation companies.
The profits of just one of them – YTL PowerSeraya (the third largest power generator with 17.7 per cent of the market share in 2016) which is a wholly owned subsidiary of YTL Sdn Bhd – was $41 million for FY2016/2917.
So, how much are the profits of all the power generation companies? – About $230 million ($41 million divided by 17.7 per cent)?
In this connection, YTL PowerSeraya was one the three power generation companies that were sold to foreign entities by Temasek Holdings.
According to Singapore Power’s annual report 2016/2017 – its profit for the year ended 31 March 2017 was $948.8 million, an increase of 2.7 per cent over the previous year’s $923.5 million.
Singapore PowerAssets’ profit was $433.6 million. Both entities are fully owned by Temasek Holdings.
So, in totality – how much profits are being made from providing electricity to the people? – About $1.6 billion (EMA $2.8 million + Power generators $230 million + Singapore Power $949 million + Singapore PowerAssets $434 million)?