S’pore To Increase Water Prices By 18% Over 2 Phases, Lower-Income Households Will Receive Support

Singapore To Increase Water Prices For Households By 18% In Two Phases For 2024 & 2025

Singaporeans will soon have to pay more for their water usage — the national water agency PUB announced that water prices will increase by 18% over two phases from now till 2025.

PUB attributed the price hikes to rising operating costs and investment needs in water infrastructure.

To cushion the impact on vulnerable households, the Ministry of Finance (MOF) will soon announce support measures for lower- and middle-income households.

Water prices to increase for households in 2024 and 2025

In a press release published on Wednesday (27 Sep), PUB stated that water prices in Singapore will increase by S$0.50 per cubic metre.

The price hike will happen over two phases, with an increase of S$0.20 and S$0.30 on 1 Apr 2024 and 1 Apr 2025 respectively.

Source: PUB

With the full price hike, one cubic metre of water will cost S$3.24 — 18% more than the current price of S$2.74.

However, PUB assured the public that three in four households will see an increase of less than S$10 to their monthly water expenses. HDB and non-HDB will see an average increase of S$7 and S$8 respectively to their monthly water bills.

As for businesses, three in four will see an increase of less than S$25 for their water bills each month.

Three in four hawkers will also have to bear an increase of less than S$15 for their monthly water expenses.

PUB said the phased approach will allow households and businesses to adjust while giving them more time to adopt water conservation methods.

Households to receive support to adjust to increase

The government will also be providing additional financial support to help households cope with the price hikes, especially those in the lower- and middle-income categories. MOF will announce these details shortly.

All households living in one-, two-, or three-room HDB flats can apply for S$50 e-vouchers under the Climate Friendly Households (CFH) programme to purchase water-efficient shower fittings.

Over the course of the next year, PUB will also enhance the CFH to cover more water fittings, and consequently, water savings.

This will help households reduce water and energy consumption while saving from S$50 to S$150 annually.

Meanwhile, businesses can tap into PUB’s Water Efficiency Fund, which offers support for companies implementing water efficiency projects.

Price hikes due to costs of producing and supplying water

PUB attributed the increase to the rising costs of producing and supplying water, which had increased substantially since the last price revision in 2017,  due to external cost pressures:

  • Average electricity market tariffs:  37%
  • Construction costs: 35%
  • Essential chemicals in water treatment: 33%
  • Maintenance expenses: 18%

The agency explained that deferring the increase would only result in “higher, more significant hikes in the future”.

The latest increase would allow PUB to sustain operations and maintain existing assets to continue delivering its water supply and used water services.

It would also enable the agency to support investments that ensure water security amid climate change and growth in demand.

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Featured image adapted from The University of British Columbia.

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