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Electricity price is shooting through the roof

Electricity price is shooting through the roof and the government is not going to help much, since it is due to market forces and the industry is run by private companies.

In the first place, should something as basic as electricity, even be privatized?

Prior to 1995, electricity was supplied by the government via the Public Utilities Board (PUB). Even if wholesale prices shot through the roof, the government mitigated the increase, as it was expected or else they would be punished come elections. But with privatization, they can more or less absolve themselves and blame the market, how convenient.

The common refrain is that privatization leads to more efficiency, better allocation of resources and therefore lower prices for the consumer.

But with electricity as well as many other public good, is it the case?

The Singapore market is compact. Breaking up the market and outsourcing to several vendors is only going to reduce economy of scale. These middlemen do not produce anything other than add to administrative cost for which they extract a profit. They are akin to leeches slowly sucking the blood out of our lives, insidiously.

Since the 80s, a major portion of GDP growth has been fueled by selling public good previously supplied by the government to crony businessmen and investment funds. Think SingTel, SBS, SP Group, SMRT, the list goes on.

In fact, if the government and investors have their way, they would privatize every public good, because by definition, they are basics and therefore indispensable. If you want to live, you got to pay. Such a business is a godsend if you can lay your hands on it.

Just think of all the public good that were once free or subsidized but which now charges market rate and you know why Singapore is a very expensive country to live in. As long as you breathe, you have to pay. Is it any wonder that working folks have to work incessantly just to live?

What is worse is that many of these privatized companies are controlled by Temasek, a supposed private holding company but funded by taxpayers money. It has far reaching powers on how the country and economy is run, but is not accountable to the people as it is a private company. It’s like a proxy totalitarian government, except you can’t vote it out.

The privatization of entities competing in the international market, like SIA, NOL, PSA probably makes sense as they have to compete for customers internationally. But the privatization of public good sold to a small captive market within the country is very difficult to justify.

 

Foong Swee Fong

 

 

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READER COMMENTS BELOW

11 Responses to “Electricity price is shooting through the roof”

  • illiterate pap voters:

    pap brings in 2m aliens to add to the 3m local born.

    3m local born uses X amount of water. 2m aliens uses Y amount of water. pap says water price must rise because water usage has risen from X to X+Y. ffff. we didn’t agree that 2m aliens be allowed in. if the 2m aliens are removed, water usage remains as X without need for any price rise.

    hahaha. pap says need the 2m aliens to create jobs for 3m local born. so 3m local born must be water price rise.

    THE same applies to electricity. THE same applies to rubbish. THE same applies to every ffff thing that 3m local born consume.

    pap creates the problem. cotton sheep and 39% bear the consequences. ffff the 61%. they cause 39% unnecessary pain.

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  • opposition dude:

    And this is why we need more opposition in parliament to ensure that PAP doesn’t keep doing things as and when they like.

    We are going to have the following increases soon.

    - Transport fare goes up on 26 December

    - GST will be 9%

    - Refuse collection fee will be going up too for the first time since 2017. As if we care since it’s 2017 and not 1917?

    - Electricity as mentioned in the article

    Remember the 30% water increase a few years back? Next thing will be university fees and childcare too.

    But that’s the PAP for you, doing what they want whenever they want.

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  • Boils down to Papp $cholarshit:

    “If you want to find the secrets of the universe, think in terms of energy, frequency and vibration…. The scientists of today think deeply instead of clearly. One must be sane to think clearly; yet one can think deeply and be quite insane.”

    - Nikola Tesla

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  • Malaysia:

    Dr Mahathir was so upset with water pricing .

    Standard rate amount supply to X

    Additional Standard rate amount supply to Y

    illiterate pap voters:
    pap brings in 2m aliens to add to the 3m local born.

    3m local born uses X amount of water. 2m aliens uses Y amount of water. pap says water price must rise because water usage has risen from X to X+Y. ffff. we didn’t agree that 2m aliens be allowed in. if the 2m aliens are removed, water usage remains as X without need for any price rise.

    hahaha. pap says need the 2m aliens to create jobs for 3m local born. so 3m local born must be water price rise.

    THE same applies to electricity. THE same applies to rubbish. THE same applies to every ffff thing that 3m local born consume.

    pap creates the problem. cotton sheep and 39% bear the consequences. ffff the 61%. they cause 39% unnecessary pain.

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  • Robert:

    Don’t forget, Singapore is run like a corporate entity. The government has lost its soul and being of the Merdeka generation, I feel the government no longer have the welfare of the people at heart.

    I recall buying my first 4A HDB flat. I was able to pay off my HDB loan in 5 years then. But now the current generation can only hope to pay off the loans in 25 or 30 years.

    And with my middle management salary, my wife was able to stop working after my first was born. But now, a single income family is restricted to the very lucky few.

    COMCARE? If you are receiving $600 as your retirement sum payout, you can forget about approaching COMCARE. At most they will advise you to approach the various foubdations like Lee Foundation.

    Why is this happening? Because we are living in corporate Singapore. Everything is reduced to dollars and cents. We are now rated as the most expensive city in Asia.

    I have told my 3 children that, if they can, they should emigrate. Yes, it will be painful as parents but I believe it would be for their good to look outwards.

    I do not hold much hope for the future Singapore. For me and my wife, we are not long for this earth. So, we can continue to live and die here.

    I do fear for the next generation and those beyond that.

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  • xoxo:

    Blood $uckers.
    A$$-holes.
    Shit-heads.
    What else?

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  • Vampirical Governance:

    The style of governance is Vampirical, sucking blood and squeezing to the bone dry and hollow, to the core.

    Budget Day is akin to a hypocritical Santa Claus throwing peanuts to cotton sheeples.

    Soon after it turns into Satan Claws, clawing back by incessantly increasing the prices of almost every public good, one after another.

    Water, electricty and gas
    Food prices beyond control
    Public transportation
    Rubbish collection fees

    GST, Property Tax, Rent and all kinds of direct and indirect taxes, except for Inheritence & Wealth Tax!

    With the addition of over 2million imported heads and thousands of condos and private houses swimming pools (amounting to one big reservoir when combined), water price increased by a whopping 30% in one fell swoop. Looks like the Poor is funding the luxuries enjoyed by the Rich.

    It’s truly bloodsucking. The prices of almost everything rises. Strange enough, TCSheep’s blood never rise at all.

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  • Absurdity:

    The authorities will say the same thing : privatization leads to more efficiency, better allocation of resources and therefore lower prices for the consumer.
    This is the same as saying that the million dollar team are bad at all these roles for public good. Next time they raise the same reasoning, remember that they slap themselves.

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  • Too expensive:

    Not everything to be left to the market force..
    Some need Government intervention to make it affordable for the lower 50% of the Citizens.
    Increase in electricity will only caused more hardship to these groups..
    Singapore is getting too expensive for this group now..hard to survive.

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  • Fund for the poor:

    Singapore should setup a foundation to help the poor to cope with the high costs of living.
    Will be worst for them next year with the many increase expected.
    The foundation should be match dollar to dollar by the Government.
    Grab founders should set a good example by donating generously to the fund.

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  • mrWie:

    In the first place PUB should not make profits when selling the electricity as they are only middleman, so must serve the residents.

    Their assets are now reaching SGD 10,000,000,000.00 … growing and growing

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