Expect carbon tax to pass on to consumers
 

CHIA YAN MIN, THE STRAITS TIMES


Feb 24, 2017 06:00 am
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The carbon tax announced in Monday's Budget will push up costs for power generators and translate into higher electricity prices for consumers, companies and economists say.

But some welcomed the move, saying it could spur the development of cleaner technologies in the long run.

The tax will be implemented from 2019 and will be levied on greenhouse gas emissions at between $10 and $20 per tonne.

It will be applied to power stations and other large direct emitters, rather than electricity users. There are 30 to 40 such large emitters, said the National Climate Change Secretariat (NCCS).

Revenue from the carbon tax will help fund measures by industries to reduce emissions, Finance Minister Heng Swee Keat said in his Budget speech.

But some increase to costs is likely inevitable.

Electricity here is mostly generated with natural gas, which results in fewer emissions than other sources like coal, said Mr James Allan, a director at consultancy Frontier Economics.

In addition, Singapore's land scarcity means power generators have limited scope to invest in zero-emission energy sources like wind or solar, he noted.

This means the carbon tax will push up costs for power generators, which will in turn pass these on to consumers.

Said Mr Allan: "Singapore enjoys a competitive wholesale electricity market. It is likely that the generators, facing similar increases in costs, would pass the carbon tax through to the market, retailers and ultimately consumers in the form of higher electricity prices."

The tax comes amid existing woes in the power generation sector, which is grappling with overcapacity and competition in the retail electricity market.

The tax will "add some hundreds of millions of dollars to the cost of producing electricity" every year, said Mr Paul Maguire, the president and chief executive of Senoko Energy.

"Such a large burden cannot be borne by a sector which today is struggling to be profitable. Our expectation is that like other regulatory costs, it will ultimately be passed to the end consumer, just like the Goods and Services Tax."

The carbon tax would translate into a rise in electricity prices of 0.43 to 0.86 cents per kilowatt hour (kwh), or a 2.1 to 4.3 per cent increase, according to estimates from NCCS.

The median household living in a four-room flat paying around $72 per month in electricity bills could see an increase of $1.70 to $3.30 monthly.

Grid operator Singapore Power said in response to queries that it is "building capabilities and developing solutions to help consumers save energy and improve quality of life".

"Some of the projects we are working on include the development of innovative sources of renewable energy and sustainable energy storage solutions," its spokesman added.

Another issue with carbon taxes is that they tend to impact low-income households proportionately more, said Professor Euston Quah, who heads the Nanyang Technological University's Department of Economics.


continue reading here : http://www.tnp.sg/news/singapore/exp...pass-consumers

Re: Expect carbon tax to pass on to consumers
 

Carbon tax to be imposed from 2019 to cut greenhouse gas emissions


By Siau Ming En

Published: 4:13 PM, February 20, 2017

Updated: 11:58 AM, February 21, 2017



SINGAPORE — From 2019, emitters of greenhouse gases will be taxed for every tonne of gas they release into the air, sending a price signal to power stations and large emitters to reduce their carbon footprint, said Finance Minister Heng Swee Keat on Monday (Feb 20).

Mr Heng said the Government is looking at setting a carbon tax rate of between S$10 and S$20 per tonne of greenhouse gas emissions, which is within the range of what other jurisdictions have implemented. The move will make Singapore the first country in South-east Asia to implement such a tax.

“There are different ways to reduce emissions … But the most economically efficient and fair way to reduce greenhouse gas emissions is to set a carbon tax, so that the emitters will take the necessary actions,” he added.

It will also create a price signal to incentivise industries to reduce their emissions and complement the regulatory measures the authorities are also introducing, he said.

Six greenhouse gases will be covered under the carbon tax: Carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride.

The carbon tax will generally be applied to large direct emitters such as power stations, rather than electricity users, said Mr Heng. Currently, there are around 30 to 40 of such large direct emitters, such as those from the petrochemical, refinery and semiconductor sectors.

For stationary greenhouse gas emissions by this group, the Government is looking at a proposed annual threshold equivalent to 25,000 tonnes of carbon dioxide. This would be equivalent to the emissions produced from the electricity consumption of 12,500 four-room HDB households each year.

The revenue from the carbon tax will help to fund measures by the industries to reduce emissions, while new opportunities in green growth industries, such as clean energy, could be created, said Mr Heng.

For businesses, the increase in operating cost from the proposed carbon tax rate represents a 6.4 to 12.7 per cent increase from current oil prices. In comparison, historical quarterly oil price fluctuations have ranged from minus 29 to 35 per cent from 2011 to 2016.

For households, the tax rate would be equivalent to an increase in electricity prices of 0.43 to 0.86 cents per kilowatt-hour. This is a 2.1 to 4.3 per cent increase from current electricity tariffs, compared with quarterly electricity prices that have fluctuated up to 10 per cent between 2010 and 2016.

Carbon taxes imposed by countries around the world range from about S$4 (Japan) to S$187 (Sweden) per tonne.

Singapore ratified the Paris Agreement on climate change last September, formalising its pledge to reduce emissions intensity by 36 per cent from 2005 levels by 2030. In 2009, Singapore pledged to reduce emissions by 16 per cent from Business-as-Usual levels by 2020 and is on track to meet this target.

Mr Heng said on Monday that consultations with industry players have begun. Public consultations will start next month and further studies will be made before finalising the tax rate and implementation schedule. “We will take into consideration the lessons from other countries and prevailing economic conditions in Singapore in implementation. We will also provide appropriate measures to ease the transition.”.

Singapore first declared its intention to implement some form of carbon pricing in the 2010 Singapore International Energy Week, if other countries also pledged to curb their carbon emissions.


continue reading here : http://www.todayonline.com/singapore...-gas-emissions

Re: Expect carbon tax to pass on to consumers
 

Sure will past to consumers.

Re: Expect carbon tax to pass on to consumers
 

This is what I heard from someone ...

Gah men come up with new policy / benefits / grants / freebies ... the $ has to come from somewhere ... they won't use capital one ... which means to say maybe :-

1) $ all gone via bad investments a la Temasek
2) all tied up - cannot liquidate
3) need to support gahmen expenditures on salaries etc etc etc

Re: Expect carbon tax to pass on to consumers
 

There is a motive when giving benefits / grants / freebies ..... nothing is free!

Re: Expect carbon tax to pass on to consumers
 

The long term for Singapore is cut down its dependency on oil and LPG . Increase use of green technology . But certainly no way to impose a carbon tax.

Re: Expect carbon tax to pass on to consumers
 

thanks for sharing

Re: Expect carbon tax to pass on to consumers
 

Double confirm will . All thanks to the 70% who voted for them . :mad:

Running spore damn easy.
Everything pass to sporeans.
carbon tax pass. If more ppl die from smoking, let them foot medical bills.

Even small things like singtel overpay for football, nvm. Pass the Buck OK Liao.

Next time garbagement piss off China n they make things expensive n miserable, nvm. Sporeans just suffer lo

Garbagement over spend, nvm. Just make sporeans pay lo
_____
Exchange points pass buck ma

Re: Expect carbon tax to pass on to consumers
 

This is a "Adult Discussions about SEX" forum, please bring your political agenda elsewhere.

Re: Expect carbon tax to pass on to consumers
 

Anyone force you to read with a knife at your throat? :rolleyes:

Re: Expect carbon tax to pass on to consumers
 

Hello clone of rocket_boy why you so bohji and bohlampar use another clone to talk to us . Also you should write big and red fonts for people to see . :D

Re: Expect carbon tax to pass on to consumers
 

Who ask you to click on this thread?

Re: Expect carbon tax to pass on to consumers
 

Yalor, he itchy backside

Re: Expect carbon tax to pass on to consumers
 

Well, tax pass on to consumers and if got pressure cannot perform in sex.