Heads up Singaporeans: Water bills rise to 50 cents per cubic metre in phases over 2 years

Three in four homes will see an increase of less than $10 monthly in water bills.

The potable water price will be implemented in two phases, an increase of 20 cents per cubic metre from April 1 2024 and 30 cents per cubic metre from April 1 2025 due to an increase in water supply costs, Singapore’s water agency said.

The Public Utility Board (PUB) announced that the current cost of water price is at $2.74 per cubic metre. It will then increase 2.5% per year since its 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,” said PUB.

For NEWater customers, the NEWater price will grow by 17 cents per cubic metre, similarly carried out in two phases.

PUB explained that water price increase will encourage water conservation by households and industries for sustainability.

“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,” it explained.

Average electricity market tariffs went up by 37%, which increases PUB’s energy costs. In addition, construction costs also went up 35%, which affects PUB’s pipeline and tunnelling projects in urbanised areas.

In total, 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. Its maintenance expenses have risen by 18% driven by higher manpower costs for contracted services. 

Mitigation measures

Three in four households will see an increase of less than $10 in their monthly water bills, before government support. Similarly, three in four businesses (including small and medium enterprises) will see an increase of less than $25 in their monthly water bills. 

With this, the Government will provide cash support to help mitigate the impact of the water price increase and other cost of living concerns, especially for lower- and middle-income households. Details of household support will be revealed shortly by MOF.

In the meantime, All 1-, 2- and 3-room households can also apply for e-vouchers under the Climate Friendly Households (CFH) Programme, to defray the costs of purchasing water-efficient shower fittings. 

In the coming year, there will be enhancements to extend the programme to more water fittings to support water savings. With the CFH programme, it will help households to reduce water and energy consumption whilst benefitting from utility savings of around $50 to $150 per household annually.

Businesses’ water efficiency

Businesses may also tap on PUB’s recently enhanced Water Efficiency Fund which support companies in implementing water efficiency projects. 

“Businesses are encouraged to tap on the fund to implement water recycling and water-efficient systems and technologies. By doing so, companies can reduce their water demand and achieve sustained cost savings in their business operations,” said PUB.

Singapore’s water demand is seen to nearly double by 2065 along with economic and population increase.