Electricity costs: Gas or Oil?

phber SG

Every increase in electricity tariff is explained by Singapore Powers as due to an increase in oil prices because oil is the main resource used in generating electricity.

In ST today, we see a reply by Island Power Company:

...
Although achieving full retail contestability of the retail electricity market will be an important achievement, the real key to realising the benefits of the deregulated electricity market is a fully liberalised, competitive natural gas industry. The reason is simple: Most electricity in Singapore is produced by plants that use natural gas and most of the marginal cost of producing electricity from such plants is the cost of natural gas.
...

- full reply here

So, what exactly do we use to generate electricity?

justcooler SG

They are talking cock again

I don't think that singapore any different from any other part of the world. Moreover singapore electricity market is not as deregulated as most of the develped countries. The demand is very much stable and predicable.

1) Most, if not all of the Natural Gas purchase for electricity production are on long term contracts, Take-or-pay contracts. So the producer of the gas can ensure a minimum income even if the gas is not used. Furthermore this contacts are sign over long term of 10 to 20 years. Future price increases for NG are taken into consideration in contract as a periodical increment of prices.

2) If the generator sign this NG contracts, they already know before hand how much they are going to generate over the NG gas contract period.

3) Singapore Power market operates on vesting contract, where retailers sign mid to long term contract with the generator; and pay the balance if they over use their quota; again this is to ensure fixed cost.

So the increase in electricity tariff is rubbish.

If they state competition, how many generating companies are there in singapore ?

The increase is "corporate greed" at working not the price natural gas

ctstalin SG

why can't we go nuclear? Rolling Eyes

no greenhouse gas, no need to worry about oil prices, availability of uranium in africa, small amount of uranium can generate a lot of electricity, can develope our own nuclear weapons if the need arises Laughing

justcooler SG

This will give them another excuses to increase the tariff of electricity

prices of uranium spike, due ot NK international act
cost of storing the waste
cost of processing the radio active cooling water
cost of building the plant
cost of buying the land
cost of ............ and raising cost of ....... Evil or Very Mad

lifeisgood9989 SG

this is just another excuse for the govt to suck more money Evil or Very Mad

dragg SG

they just increase as they like because they monopolised the market.

what can we do when our govt dont even give a damn.

justcooler SG

either we get out of singapore and branded as quitters Confused or we headbud the MRT train Crying or Very sad

play_n_play SG

the oil price (also included the forward price as well) now kept dropping even though OPEC decreased the output...

the gas price is even cheaper i think...

i really dun understand why the electricity tariff is still going up...