Electricity tariff increase to benefit Temasek, help recoup losses from US$1.3 billion investment

Next month, SP Group will rip off consumers and businesses with another round of  electricity tariff increase based on oil price increase, not natural gas.

The price of natural gas is almost unchanged from 1 year ago.

The tariff increase will ultimately benefit Temasek Holdings: SP Group is 100% Temasek-owned.

The company supplying natural gas to SP Group, Pavilion Energy, is also another 100% Temasek-owned company.

In 2013, Temasek had set up Pavilion to invest/speculate in natural gas.  US$1.3 billion was paid to Ophir Energy Plc for a 20% stake in 3 blocks of natural gas off the Tanzanian coast.

Judging from the collapse of Ophir Energy share price of almost 90%, the investment is likely to yield a negative return, if not wiped out.
1electricity1ahSince the price of natural gas is 20% to 40% lower than in 2013, Temasek must have overpaid for its US$1.3 billion investment.

But this will be no issue to Temasek because July’s electricity tariff increase will help to recoup Pavilion’s loss.

How much has Temasek profited from Singaporeans? How much have citizens contributed to paying for Temasek’s investment losses?

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3 Responses to Electricity tariff increase to benefit Temasek, help recoup losses from US$1.3 billion investment

  1. Francis says:

    This is what singaporean like, pay and pay without complaining. Why Temasek don’t have to submit financial report and actions taken to improve investment. They are using our money to invest as they like.

    • Phillip Ang says:

      Kiasi and kiasu citizens remain fearful about mentioning corruption. Even elected MPs prefer silence. Guess we will need foreigners to expose PAP scams, as in Malaysian’s case.

  2. Francis says:

    Malaysia Boleh, Singapore Tak boleh, Malaysian set a very good example for the rest of the world to follow what u call democracy and a change in policy. Where does it’s make sense that the people elect the candidates to form the government and in turn we get squeeze by them and allow them to do what they like, like being the highest paid minister in the world. All these money come from where? The people money and not enough just increase anything they like.

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