Singapore Power should not levy 12% p.a. interest on late payment, acts like Ah Long

PAP has the ability to profit from citizens in anyway it wants and its greed is really insatiable.

While a pink notice reminder fee of 50 cents is acceptable as Singapore Power customers occasionally overlook payment, the 1% per month charged for late payment is exorbitant by any measure.

SP bill

The late payment charge of ‘1%’ is misleading because it is not stated as ‘per annum’ but ‘per month’. SP customers have been fleeced for decades because the effective interest rate is 12% per year.

Is SP a mini Ah Long?

The other issue is SP has also been fleecing consumers by levying 7% GST on late payment charge which is neither a good nor service. The government has to put a stop to this unethical practice.

Considering Singapore Power (SP) does not lose 1% on interest on the late payment, or even close, why is it allowed to profit from consumers in such a manner? Why should SP be allowed to act as a credit card company of sorts?

SP customers are already required to place a deposit since day one: SP has been earning a huge amount in interest income from our deposits.

For a single late payment, SP has levied a fee of $1.69. Question: What about the interest income it has been earning on my $150 deposit for the past 30 years? No pakai isit?

How much interest income has SP been earning from 1.3 million households? What about businesses which are required to place much higher deposits?

I guess SP has been allowed to earn undeserved income because it is another government-linked company, one of Temasek’s major investments.

In FY 2016, SP’s profit was $924 million and the previous year, $991 million.

Source: Temasek Review 2016

It is unethical to force consumers to pay a 12% penalty for overlooking payment. Worse, levy a 7% GST on a non-existent good/service.

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One Response to Singapore Power should not levy 12% p.a. interest on late payment, acts like Ah Long

  1. aaaaaa says:

    Waaahh SP profit even bigger than SIA. If other countries got same pro-business & pro-monopoly laws as Singapore, Temasek & GIC can earn so much more by setting up electricity companies in other countries liao. But too bad for Temasek & GIC — other developed countries got laws against monopolistic pricing and also laws to ensure affordable utilities.

    And SMRT really fucked up profits when compared to SP. No wonder Khaw is so eager to ramp up public transport fares liao. CEO Ng must be getting an earful from his Temasek masters while being hentak kaki on the spot.

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