S’PORE WATER PRICES TO INCREASE BY 50 CENTS BY 2025, WILL BE UPPED IN 2 PHASES

Water is a precious resource, and its availability and affordability are crucial concerns for both households and businesses.

In Singapore, the national water agency PUB has recently announced that water prices will increase by approximately 18%/50 cents per cubic metre over the next two years, according to Channel NewsAsia.

Understanding the Price Hike

Here are the key details of the price hike:

1. Current Water Prices: As of now, potable water in Singapore costs S$2.74 (US$2.01) per 1,000 liters, or per cubic meter, before taxes for most households.
2. Phased Increase: The price increase will be split into two phases. The first phase, which will take effect on April 1, 2024, will raise prices by 20 cents per cubic meter. The second phase, starting on April 1, 2025, will raise prices by an additional 30 cents per cubic meter.
3. Impact on Households: After the 2025 revision, three out of four households will experience an increase of less than S$10 in their monthly water bills.
4. Impact on Businesses and Hawkers: Three out of four businesses will see their water bills rise by less than S$25 a month, while three out of four hawkers will face an increase of less than S$15 monthly.
5. Higher Consumption: Households that consume more water, exceeding 40 cubic meters a month, will experience a higher increase in their bills. For each cubic meter of water above the threshold, the rate they pay will rise by 70 cents.
6. NEWater Prices: The price of NEWater, which is treated reclaimed wastewater mainly used for industrial and air conditioning purposes, will increase by 17 cents per cubic meter, also in two stages.
7. Previous Increases: Water prices in Singapore were last increased by 30% in two phases in 2017, and before that in 2000.
8. Reasons for the Increase: PUB cited several factors for the price hike, including rising operating costs, increased investment needs for water infrastructure, higher electricity tariffs, construction costs, expenses for essential chemicals in water treatment, and maintenance expenses due to higher manpower costs.
9. Water Sources: PUB mentioned that with increasing water demand projected to almost double by 2065, they will rely more on sources like NEWater and desalinated water, which are more resilient to climate change but also more energy-intensive and costly to produce.
10. Sustainability and Infrastructure: PUB emphasized that this price increase is necessary to sustain operations, maintain existing assets, and support critical investments in water infrastructure to ensure water security for Singapore, particularly in the face of climate change and growing water demand.
11. Future Reviews: PUB stated that it regularly reviews water prices, considering both annual operating costs and long-term investments in water infrastructure. They are also investing in research and development of new technology to manage long-term costs.