SP Group makes nearly $1b but will increase tariffs by 2.8% average from 1 Apr as approved by EMA

SP Group issued a press release yesterday (29 Mar) announcing that starting from 1 Apr next month to 30 Jun, the electricity tariffs will be increased by an average of 2.8% or 0.59 cent per kWh compared to the previous quarter.

“This is mainly due to the higher energy cost of producing electricity,” it said.

For households, the electricity tariff will increase from 21.56 to 22.15 cents per kWh.

“The average monthly electricity bill for families living in 4-room HDB flats will increase by $1.86,” it added.

SP Group makes close to $1 billion a year

Thanks to financial blogger Leong Sze Hian, it has been revealed that SP Group actually made a net profit after tax of $948.8 million in the last FY ending at 31 Mar 2017.

And for the previous FY before last (ie, FY2016), its net profit after tax was $923.5 million, also close to $1 billion.

SP Group which is wholly owned by Temasek Holdings said that it reviews the electricity tariffs quarterly based on “guidelines set by the Energy Market Authority (EMA)”.

The new tariff increase has been approved by the EMA, it added.

Incidentally, PAP leaders like Lawrence Wong and Chee Hong Tat used to head EMA.

The current Chairman of EMA is Ng How Yue.  Mr Ng is also currently the Permanent Secretary for the Ministry of Law and former Principal Private Secretary to the Prime Minister.

In view of the obscene profit made by SP Group every year, perhaps EMA should consider factoring in SP Group’s profit to moderate down electricity tariffs charged to Singaporeans every month? What do you think?

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