Financial news: What if your electricity price increased by 3000 pct?

Financial news: What if your electricity price increased by 3000 pct?

This happened at a DEVELOPED country. I have no idea if this also happens to any developing country but this particular news belongs to an advanced economy or also known as a developed country according to one particular comedian who’s a former citizen. If you do not know her name, no need to ask me. Go google. Coming back to this alarming piece of news.

Article in themalaysianreserve.com Singapore’s Energy Market Authority will cap wholesale power prices from July 1 using a formula tied to natural gas and generation costs. The reason was because the price of electricity jumped as much as 3,000 percent this year even though the cost of liquefied natural gas actually dropped. This increase in price has hurt households.

The prices reached as high as S$3,594 ($2,685) a megawatt-hour in daily trading after a power plant at Jurong Island shut for a turbine upgrade amid unusually hot weather. Meanwhile, the cost of LNG has fallen 86% since March 2022.  Please do read the full article here: Article in themalaysianreserve.com

Produce more or use less electricity. Hot weather is the culprit.

The need for a formula meant that the electricity price would be sort of controlled. This may not be a happy news for some producers of electricity if indeed their costs are increasing and they could not pass this to the households. Meanwhile any sudden spike in electricity would burden households especially during hot weather times. Perhaps running off to the nearest malls may help? Meanwhile the current producers of electricity, if they do not have sufficient profits, they may be unwilling to invest into more production for the future. This is also not an ideal situation too.

Perhaps can also encourage more Singaporeans to travel out of Singapore during the weekends, that would also help to reduce the electricity consumption too. Just drop by Malaysia anytime. The currency factor helps too. For the households without a car due to the controlled supply of car ownership, just rent a car. Happy travelling and hopefully everyone gets to enjoy cool temperature too.

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