Singapore, 27 September 2023 — In response to escalating production and supply costs, Singapore will implement a phased revision of water prices, commencing on 1 April 2024 and followed by another adjustment on 1 April 2025.
Currently priced at $2.74 per cubic metre, the potable water rate will incrementally rise by 50 cents per cubic metre over two phases. The initial increase of 20 cents per cubic metre will be effective from 1 April 2024, followed by a subsequent rise of 30 cents per cubic metre from 1 April 2025.
In light of the full price revision set for April 2025, approximately 75% of households can expect a monthly increase of less than $10, before government support. Similarly, 75% of businesses, including small and medium enterprises, will see an increase of less than $25 in their monthly water bills.
Reasons for the Price Increase
Water, a critical resource for Singapore’s sustainability, has been a focal point of long-term planning and investment in critical infrastructure. This commitment has culminated in the establishment of the Four National Taps, ensuring a secure and dependable water supply to meet the nation’s growing demands.
Despite active cost mitigation measures, PUB and associated contractors have faced substantial cost increases since the last revision in 2017. Contributing factors include a 37% surge in average electricity market tariffs, increased expenses for essential chemicals and maintenance, and a 35% rise in construction costs.
Anticipating nearly double the water demand by 2065, Singapore acknowledges the pressing need for sustained investments in water infrastructure. The threat of climate change further underscores the necessity of weather-resilient water sources, such as NEWater and desalinated water, albeit at a higher energy and production cost.
Supports for a Smooth Transition
To cushion the impact of the water price hike, especially for lower- and middle-income households, the government will provide additional financial support, with details to be disclosed by the Ministry of Finance shortly. PUB will collaborate with the Ministry of Trade and Industry and relevant authorities to discourage profiteering.
Furthermore, the Climate Friendly Households (CFH) Programme will extend e-vouchers to all 1-, 2-, and 3-room households for water-efficient shower fittings. This program will be expanded in the coming year to encompass additional water fittings, yielding savings of approximately $50 to $150 per household annually.
Businesses, too, can tap into PUB’s augmented Water Efficiency Fund to implement water recycling and efficiency projects, thereby reducing their water demand and achieving sustainable cost savings.
As Singapore navigates these revisions, a comprehensive approach combining conservation efforts and financial support aims to ensure the continued availability and accessibility of this vital resource for all its citizens.