THE electricity tariff has increased (‘Electricity tariff going up again’; last Saturday) by about 44 per cent from January 2007 ($20.02) to this month ($28.78), against an 80 per cent increase in fuel prices, that is, this month’s price of $136.37 per barrel against January 2007’s $75.73.
As the Energy Market Authority’s website states that the non-fuel cost, which reflects the cost of generating and delivering electricity to homes, has remained largely unchanged over the past few years, why is it that the fuel component of the tariff has increased by about 113 per cent, from about 8 cents in January 2007 to 17 cents this month?
As the electricity tariff is pegged to fuel prices, as we have been told, why did the fuel component increase by about 113 per cent, against an 80 per cent increase in fuel prices?
Also, as the non-fuel cost includes the power generation cost, which covers also the capital costs of the power stations, and several of our power generation companies have been sold to foreign firms, shouldn’t there have been a reduction in the non-fuel component, as the capital costs of the stations may have already been recouped?
Leong Sze Hian