Electricity tariffs will increase by 2.8% for the next 3 months. CNA
This is on top of the 6.8% increase in the previous three months. (“Electricity tariffs to increase by 6.3% for next three months“)
The increase is unjustified because SP Group (SPG) made a net profit (after tax) of almost $1 billion last year. This was revealed by Leong Sze Hian in this TOC article.
After combing through every annual report since 2005, I have discovered that SPG did not earn close to $1 billion in after-tax net profit only recently: it has been making an average of almost $1 billion for 13 years.
From 2005 to 2017, SPG’s annual net profit averaged almost $1 billion. (Figures from individual SP annual reports here.)
More than a decade ago, the issue of SPG’s $1 billion profit was highlighted by WP’s Gerald Giam. Gerald:
SPG has consistently claimed that it reviews “electricity tariffs quarterly based on guidelines set by the Energy Market Authority (EMA), the electricity industry regulator“.
It appears that PAP has a pre-determined net profit target for SPG and through a flawed PAP-approved formula, SPG has managed to overcharge consumers of billion$ in electricity tariffs.
The predetermined net profit target appears to be almost $1 billion.
Like the PTC which fleeces public transport commuters through a constantly reviewed fare formula to ensure Temasek-linked PTOs’ profitability , the EMA has implemented a similar formula to scam Singaporean households.
What is really incredible about SPG is its increasingly obscene profit margin during the past 4 years despite revenue falling by more than $1 billion.
Its after tax net profit/revenue margin was 25% in the last financial year.
Any business with such a high profit margin? No wonder Temasek keeps all these pow chiak company for jiak liow bee PAP elites to manage.
Should the PAP government continue to allow Singaporeans to be scammed by SP Group?
Should SP Group be making about $1 billion in after-tax net profit every year?