Water prices to increase by 50 cents per cubic metre by 2025; lower-, middle-income households to receive government support
Most families can expect to pay an additional $4 to $9, excluding GST, for their monthly water bill by 2025.
Water prices will rise by a total of 50 cents per cubic metre over the next two years. The increase will happen over two phases – 20 cents in April 2024 and then by 30 cents in April 2025, announced national water agency PUB on Wednesday (Sep 27).
PUB stated that the price hike comes amid the “rising costs of producing and supplying water”, since the last price revision in 2017.
External cost pressures such as rising electricity market tariffs, construction costs, chemical expenses and maintenance expenses have made the price hike necessary, PUB added. It is also needed to maintain PUB’s long-term investments to fulfil Singapore’s increasing water demand, projected to double by 2065.
Deferring the hike would only mean “higher, more significant hikes in the near future”.
The cost of one cubic metre (1,000 litres) of water will rise from $2.74 to $3.24 by 2025, equivalent to a total increase of 18.2 per cent.
PUB assured that after the full price hike, three in four households will see a water bill increase not higher than $10 per month before government support.
As for businesses, three in four will see an increase of less than $25 in their monthly water bills.
With this round’s double-phased approach, PUB intends to help households and businesses adjust to the price increase and allow more time for the adoption of water conservation measures.
Support for households
The Ministry of Finance (MOF) announced a $1.1 billion cost-of-living support package on Thursday (Sep 28), in view of the water price hike and other concerns such as the recent public transport fare hike and GST hike.
The package includes payment of $200 in cash for eligible adult Singaporeans in December, and an additional $200 of Community Development Council (CDC) vouchers for every Singaporean household in 2024.
CDC vouchers can be used to purchase goods and services from participating hawkers, supermarkets and heartland merchants.
There will also be a one-off, half month’s worth of Service & Conservancy Charges (S&CC) rebates disbursed in January 2024, and a total of $80 per year of U-Save rebates from January 2024 to December 2025 for 950,000 Singaporean HDB households.
In the meantime, all households living in one-, two-, and three-room HDB flats are eligible for $50 e-vouchers under the Climate Friendly Households Programme.
They may purchase three-tick, water-efficient shower fittings, which will help reduce their water consumption.
More information about the water price revision can be found on PUB’s website.