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31 December 2009, My Paper
PUT THE BRAKE ON ELECTRICITY PRICE HIKES While the economy is on the mend, there are still jobless people and not everyone's pay cuts have been restored. Though fuel oil prices have risen, is there a need to increase electricity tariffs? Perhaps the authorities should ask providers to show their profit-and-less statements. If the providers' cash flow is still positive, they could absorb the higher costs of providing electricity for the time being. Mr David Soh Poh Huat
Reply From EMA I refer to Mr David Soh Poh Huat's letter "Put the brakes on electricity hikes" (My Paper, 31 December 2009). In his letter, Mr Soh suggested that the higher cost of electricity be absorbed by the power companies. The increase in the electricity tariff is due to higher fuel oil prices, as he recognised. All the increase in the tariff goes towards paying the higher cost of fuel. The power companies do not benefit from the tariff increase. It is also not sustainable for these companies to absorb the higher fuel cost as Singapore imports all its fuel for electricity generation. While everyone is charged the full cost of electricity in Singapore, Utilities-Save (U-Save) rebates, under the Government’s GST Offset Package scheme, are given to eligible HDB households. These rebates can help offset their utilities bills by $55 to $200 this year. Those living in smaller HDB flats will get more U-Save rebates. About 800,000 HDB households will receive $106 million worth of U-Save rebates this year. The first payout, amounting to $60 million of U-Save rebates, will be made this month. Eligible households will receive the second payout in July. Juliana Chow
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