Singapore to raise water prices by 18% over two phases in 2024 and 2025
Most households will pay 20 cents more for every 1,000 litres of water next year and another 30 cents more in 2025
Water prices in Singapore will rise by about 18 per cent over the next two years, national water agency PUB said on Wednesday (Sep 27). Potable water currently costs S$2.74 (US$2.01) for every 1,000 litres, or per cubic metre, before tax for most households.
The increase translates to an additional 50 cents per cubic metre. It will be split over two phases: 20 cents on Apr 1, 2024 and 30 cents on Apr 1, 2025. After the 2025 revision, three in four households will see a less than S$10 increase in their monthly water bills, PUB said. For businesses, three in four will see their water bills rise by less than S$25 a month while three in four hawkers will foot an increase of less than S$15 monthly.
The 4 per cent of households that consume much more water – exceeding 40 cubic metres a month – will see a higher increase in their bills. For every cubic metre of water above the threshold, the rate they pay will rise by 70 cents, from S$3.69 now to S$3.94 next year and S$4.39 the year after. The average household consumes about 15 cubic metres of water each month.
S’pore water price to rise by 50 cents per cubic m by 2025; lower- and middle-income families to get help
Most households will fork out an additional $4 to $9, excluding GST, for their monthly water bills by 2025. ST PHOTO: BRIAN TEO
Water will soon cost consumers an additional 50 cents per cubic m, starting with a 20-cent increase in April 2024 and a 30-cent rise in April 2025. This means that most households will fork out an additional $4 to $9, excluding goods and services tax (GST), for their monthly water bill by 2025, said national water agency PUB on Wednesday.
In 2020, the average monthly consumption of water was 15 cubic m for condominiums and 16.2 cubic m for HDB flats. Lower- and middle-income households will get help to offset some of the price increase. Deputy Prime Minister and Finance Minister Lawrence Wong will announce cost-of-living support measures to provide more relief for Singaporean households on Thursday.
The last water price hike of 30 per cent happened in 2017. The upcoming 50-cent rise – bringing the cost of 1 cubic m, or 1,000 litres, of water to $3.24 – is an 18 per cent increase. The price hike between 1997 and 2000 saw water prices rising by 120 per cent for households. The upcoming increase comes amid rising living costs, GST hikes and higher transport fares, and the water agency did not take the decision lightly, said a PUB spokesman.
What you need to know about Singapore's impending water price hike
Water prices are set to increase by 18 per cent, starting from April next year.
How will the impending rise impact you, businesses or hawkers?
Here's what you need to know:
- How much more will I have to pay? - If you consume up to 40 cubic metres of water, you will have to pay an additional 50 cents per cubic metre. The hike will be implemented over two phases: 20 cents on Apr 1, 2024 and 30 cents on Apr 1, 2025.
- What help will I get? - The Ministry of Finance will on Thursday announce additional support measures to help households with the impact of the water price increase and other cost of living concerns. Meanwhile, all one-, two- and three-room households can apply for e-vouchers under the Climate Friendly Households Programme to offset the costs of installing water-efficient shower fittings.
- How much more will businesses have to pay? - Three in four businesses, including small and medium enterprises will experience an increase of less than S$25 in their monthly water bills. Three out of four hawkers will see an increase of less than S$15 per month.
- When were water prices last raised? - Water prices were last raised by 30 per cent in 2017, also over two phases. Announced in Budget 2017, the water prices were raised for the first time since 2000 to reflect the costs of water supply and to maintain Singapore's water infrastructure.
- Why are prices going up this time? - The latest price increase is due to rising operating costs and heavier investment in water infrastructure. The cost of producing and supplying water has gone up substantially since the last price revision, PUB said.
Water price to rise from April 2024; Government to provide support for lower- and middle-income households
Water price will be revised in two phases on 1 April 2024 and 1 April 2025, to reflect the rising costs of producing and supplying water. Water security is essential for Singapore. Water is a strategic resource that all of us – individuals, businesses, and the Government – must safeguard. Through long-term planning and continual investments in critical water infrastructure, Singapore has developed the Four National Taps1 to ensure a safe and reliable water supply to meet the needs of our population and economy. In Singapore, water is priced to recover the full cost of its supply and production, and to reflect the cost of producing the next drop of water. This right pricing of water also encourages water conservation by households and industries, to achieve a sustainable growth in water demand.
Even with active cost mitigation measures by PUB and our contractors, the cost of producing and supplying water has increased substantially since the last price revision in 2017, due to external cost pressures. Average electricity market tariffs have increased by about 37%, adding to PUB’s energy costs as we increasingly tap on energy-intensive sources such as NEWater and desalination to meet growing water demand. Construction costs in Singapore have also gone up by 35% across the industry2, with higher increases for specialised works PUB must undertake, such as tunnelling and pipeline projects through highly urbanised areas. PUB’s expenses for essential chemicals in water and used water treatment have increased by about 33%, due to inflationary pressures and supply chain disruptions. Similarly, maintenance expenses have risen by 18% due to higher manpower costs for contracted services.
Singapore’s water demand is projected to almost double by 2065 in tandem with economic and population growth. Climate change will also put greater strain on our local catchment and imported water which are weather-dependent. To ensure the security and sustainability of our water supply, we will need to maintain long-term investments in water infrastructure and further develop ourweather-resilient water sources such as NEWater and desalinated water, which are more energy-intensive and costlier to produce. The current potable water price is set at $2.74 per cubic metre. To meet the higher costs of supplying and producing water, the potable water price will increase by 50 cents per cubic metre (equivalent to 1,000 litres of water). This will be implemented in two phases – an increase of 20 cents per cubic metre from 1 April 2024, and a further 30 cents per cubic metre from 1 April 2025. This would represent an increase in water price of about 2.5% per year since the last price revision. The phased approach, with a smaller increase in the first year, is intended to help households and businesses adjust to the price increase and allow more time for the adoption of water conservation measures. For NEWater customers, the NEWater price will increase by 17 cents per cubic metre, similarly carried out in two phases
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