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  Today Online 6 Oct 06
Users charged in accordance with bi-monthly utility meter readings
Letter from Ong Keng Kiat Managing Director SP Services Limited

Today Online 6 Oct 06
Explaining the rise in your electricity bill
Letter from Ong Keng Kiat Managing Director SP Services Limited

 Today Online 4 Oct 06
$80 bills are possible
Letter from Rashid Osman

Today Online 3 Oct 06
Shortcircuited in our efforts to save electricity, we still pay more
Letter from agnes meurzec

Today Online 29 Sep 06
Feeling powerless
Are $80-$100 utility bills possible for 4-, 5-rm homes?
Shrinking household but bills keep growing How is expected increase in fuel oil costs derived?
Letter from Lim Boon Hee
Letter from Mumtaz A Wahab
Letter from Lee Hwan Meng

Today Online 30 Sep 06
You have the power to use less
Letter from David Goh Chee Hoe

Cut habits such as three showers a day, 24-hour aircon

I refer to the letters, "Feeling powerless" (Sept 29).

I believe electricity rates are set quarterly based on the last quarter's average fuel prices. Unfortunately, crude oil prices hit a record high during the first week of August due to the Middle East conflict, a crude oil pipeline leakage in the Alaska North Slope resulting in the closure of more than 50 per cent of production, a Nigerian militant attack on an offshore oil field, and so on.

In short, the third quarter's average fuel prices were higher than that of the second quarter. That is probably what Singapore Power was trying to say but I think it should be more transparent on what were the average fuel prices for the first, second and third quarters, and electricity rates, to help the public accept fluctuations in the rates.

In general, Singaporeans have enjoyed a higher standard of living over the past 20 years as most Housing Board dwellers have air-conditioned bedrooms and washing machines.

I lived in a five-room HDB flat in Dover Close East back in the 1980s. Only a handful of us had air-conditioning installed in master bedrooms. No more than five families had domestic workers.

The picture has changed. Air-con units, washing machines and water heaters consume electricity, so we need to educate the young on energy and water conservation.

I meet many fellow Singaporeans at the weekly Meet-the-People session who don't seem to know how to conserve energy and water. Some three- or four-room HDB flats have monthly utilities bills of $200 to $300, and I'm always curious about what their lifestyles are like.

Some people give interesting replies, such as that the weather is so warm, they have no choice but to use the air-con for almost 24 hours. Some tell me they bathe three to four times daily and many use their washing machines daily.

How to maintain a $100 monthly utilities bill for a four- or five-room HDB flat?

Change your habits. I guarantee your bills will easily go down by 20 per cent.

Today Online 29 Sep 06
Feeling powerless
Are $80-$100 utility bills possible for 4-, 5-rm homes?
Shrinking household but bills keep growing How is expected increase in fuel oil costs derived?
Letter from Lim Boon Hee
Letter from Mumtaz A Wahab
Letter from Lee Hwan Meng

I refer to the report, "Electricity rates to rise from next month" (Sept 28). It states that fuel oil prices are "expected" to rise in the next quarter and that fuel prices are adjusted every quarter.

I read with resignation that electricity prices will again go up by 2.3 per cent from Sunday. But I find it hard to believe SP Services figures that show that a four-room-flat household pays only about $80 while five-roomers pay about $100 a month for their utilities.

The utility bills cited seem to be abnormally small. I wonder how these figures were arrived at. Could the authority please explain how they derived these figures?

Many of us easily pay double the figures quoted. We would also like to know how much interest SP Services makes from all the millions held in customers' deposits.

Also, instead of the current monopoly, will households ever have a choice of electricity providers to enable a choice of using the most competitive one?

I am an owner of a five-room flat in the east and have lived for the past six years in a six-member household. Although we are now a four-member household, consisting of a working couple and two schoolchildren, I notice the size of our utility bill is unchanged, and has even increased despite a decrease in usage.

Most times, we notice that the bill is almost always calculated based on an estimate, which indicates the meter is not read every month. I think it is not fair to judge our estimated bill by the size of our flat and to base the tariffs we have to pay on this estimate.

I have been paying about $250 to $270 a month since 1999, when we moved in, and our bill has even gone up to the $350 bracket. For a small family that is not always at home, this seems ridiculous.

SP Services responded to my complaints about two years ago and sent an officer to inspect our place. Even though we heeded the advice to minimise our electricity usage in many ways, nothing has changed. Could the relevant authority look deeper into this matter?

I do not think it is only my family that is affected. I believe a review is much needed and that bigger subsidies need to be considered for four- and five-room flat owners. It should not be assumed that all middle-class families can afford big bills.

Since July, I have seen petrol stations lowering their prices more than once and international oil prices falling to a six-month low on more than one occasion.

Perhaps the relevant authority could explain how the "expected" increase for the last quarter of this year was derived.

Today Online 4 Oct 06
$80 bills are possible
Letter from Rashid Osman

I refer to the letter by Lim Boon Hee, "Are $80-$100 utility bills possible for 4-, 5-room homes" (Sept 29).

I am the owner of a five-room flat in the west, and I can confirm that it is possible for a five-room unit to have utilities bills in that range.

My average monthly bill is $80. There are just the two of us, myself and my wife, in the house. In fact, my previous three-room flat which housed three persons chalked up higher utilities bills — more than $100 a month.

The reason I can keep the bills low now is, I guess, due to the fact that I seldom use the air- conditioner at home.

I also do take note of the tips given by SP Services in their monthly bills on how to keep consumption low. So, it's not impossible to keep our bills low every month if we make an effort to save energy.

Today Online 3 Oct 06
Shortcircuited in our efforts to save electricity, we still pay more
Letter from agnes meurzec

I am renting a three-bedroom semi- detached house in the East Coast and I support the feedback given by Lim Boon Hee and Mumtaz A Wahab ("Feeling powerless … " Sept 29)

My two girls and I, plus our maid, used to rent a six-bedroom semi-detached house. Last year, we moved to this house mainly to cut down on the maintenance fees. Today, we have three air-conditioners in the house that we use only at night. During the day, we keep all our windows open and use the fans sparingly.

Our maid is well aware and trained to limit as far as possible the excessive use of water and electricity. This house is equipped with a dishwasher which we hardly use. Our maid has been told to avoid using the clothes dryer, only when it is really necessary. The washing machine is used smartly by combining "washing" in order to avoid too many small loads.

Of course, the TV never stays on if nobody is watching, the same goes for the lights and sole water-heater. Watering of the garden is done carefully too, and as for the car, I take it to the carwash.

Yet, like Mumtaz A Wahab, our bills are almost always based on an estimate, which is surprising as our maid is around 24/7. So, it is easy for SP Services' staff to read the meter on a regular basis.

Like Mr Lim, I now read my bill with resignation as it seems that whatever we do to reduce the amount, it is to no avail.

It is frustrating and inexplicable: The less we use, the more we pay! How do I explain this to my teenage girls who do not see the fruits of our effort to save both money and the environment?

Today Online 6 Oct 06
Explaining the rise in your electricity bill
Letter from Ong Keng Kiat Managing Director SP Services Limited

Power tariff hikes based on actual traded forward fuel prices, not projections or forecast costs

I REFER to the letters from Mr Lee Hwan Meng, Mr Lim Boon Hee, Ms Mumtaz A Wahab (Sept 29), and Mr David Goh Chee Hoe (Sept 30).

Fuel cost is the largest cost component for power generation, making up about 55 per cent of the cost of electricity. Hence, electricity tariffs are reviewed and adjusted quarterly to take into account the fluctuation in fuel oil prices. The electricity industry regulator, Energy Market Authority (EMA), approves all revisions to the tariff.

As tariffs are set in advance for the next three months, this requires the tariffs to be pegged to forward fuel oil prices, and not current spot prices. For example, for the quarter October to December, the tariffs are set based on the forward fuel oil prices for that quarter. Forward fuel oil prices are prices at which the oil market was trading for fuel oil deliveries for a future period.

The forward prices are actual prices, not projections nor forecasted prices. Hence, although the current spot oil market may experience lower prices now, the tariffs would increase because the forward prices for the October to December quarter are higher than for the previous July to September quarter.

According to EMA, forward prices tend to be less volatile than spot prices and have on occasions in the past been lower than spot prices. If the forward fuel oil price for the quarter January to March 2007 is lower than that for the October to December 2006 quarter, the tariffs for January-March will correspondingly be lower even if the spot prices in December this year are higher.

Although fuel oil prices now are substantially higher than in 2001, the increases in tariffs have been small in comparison. This is because the electricity industry has gained in efficiency and has passed on the cost savings to consumers.

The monthly average electricity consumption of $80 and $100 for Housing and Development Board 4-room and 5-room units is calculated by averaging out the consumption of all households of the same accommodation type. The average figures are reviewed every six months for active accounts.

A reduction in the number of people in the household may not necessarily result in a lower consumption if the consumption pattern is not changed. Therefore, if the usage of air-conditioning, for example, is unchanged, the bill may remain the same.

Generally, cooling and heating appliances such as air conditioners consume the most electricity and account for a major component of the electricity bill for households that use them.

Utility meters are read once every two months. During the months when the meters are not read, the consumption will be estimated based on the two actual readings preceding. The bill will then be adjusted for any over or under estimation when the meter is next read.

If there is a tariff revision within the billing period, the charges for the month will be pro-rated according to the old tariff and the new tariff. Consumers can reduce their utilities bill by conserving the use of electricity and other utilities. We would like to invite readers to visit www.services.spservices.sg and www.nccc.gov.sg for tips on the efficient use of electricity.

We would also like to request Ms Wahab to contact us at 6823 8202 to enable us to clarify to her the method of estimating her monthly bill based on her flat's past actual consumption figures, rather than by the size of her flat.

Today Online 6 Oct 06
Users charged in accordance with bi-monthly utility meter readings
Letter from Ong Keng Kiat Managing Director SP Services Limited

I REFER to the letter, "Shortcircuited in our efforts to save electricity, we still pay more", from Ms Agnes Meurzec (Oct 3).

I would like to clarify that utility meters are read once in two months. During the months when the meters are not read, the consumption is estimated based on the average of the two actual readings preceding. The bill will then be adjusted for any over or under estimation when the meter is next read.

We would like to assure Ms Meurzec and all customers that they are billed based on what they have actually consumed every two months as registered by the meters installed at their premises.

Where meters are located inside the premises and the owners are not around at the time of reading, our meter readers will leave a "door-locked" card for the customers to contact us to arrange for an appointment to read the meters as soon as is convenient for them.

SP Services has to manage about three million meters. lt would be very costly to take readings on a monthly basis. Meter readings at intervals other than monthly are not uncommon in other countries.

We would appreciate it if Ms Meurzec would call us at 6823 8202 to arrange for our personnel to read and check her meter once more. We thank her for her feedback.

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