Electricity competition: 24% cheaper – obscene profits for decades?

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The opening up of electricity to competition has highlighted the humongous profits in the past?

I refer to the article “Sizzling competition, ‘encouraging’ sign-ups as electricity market opens up in Jurong” (Channel NewsAsia, Apr 26).

It states that “With his new 12-month plan charging 16.95 cents per kilowatt hour (kWh), almost 5 cents lower than SP Group’s current electricity tariffs“.

Does this mean that the price difference is 23.5 per cent (16.95 divided by 22.15 cents)?

So, can you imagine the humongous profits that have been made in the past?

With the estimated annual profits of about $1.6 billion from providing electricity in Singapore – are we looking at tens of billions of profits in the past decades?

In this connection, what is arguably noteworthy may be that the loads of commentary in the media I understand, have never mentioned the obvious – the humongous profits in the past?

Is it any wonder that our Press Freedom Ranking for 2018 (released a few days ago) is still at 151st?

Leong Sze Hian

About the Author

Leong
Leong Sze Hian has served as president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), invited to speak more than 200 times in over 30 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of Indonesia and Brunei. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.