Price of water to go up by 30% over 2 years
Water prices will be revised from 1 July 2017. Tariffs will go up in two steps, in July 2017 and in July 2018. Water prices have remained unchanged since 2000.
Heavy investments in water infrastructure, coupled with rising operational costs, have made the increase in water prices necessary. We are upgrading our water system to make it more resilient, especially to face the challenges posed by climate change. The revised water prices will enable PUB, the National Water Agency, to cater to future demand, strengthen Singapore's water security, and continue to deliver a high-quality and reliable supply of water.
The water price goes towards meeting the cost of water treatment, reservoir operations, NEWater production, desalination, used water collection and treatment, and the maintenance and expansion of the island-wide network of water pipelines.
It also includes the Water Conservation Tax (WCT), which is imposed on the potable water tariff. The WCT reinforces the message that water is precious. It is also to reflect the full incremental cost of producing more potable water (likely by desalination and NEWater) beyond PUB's present output, so that consumers are conscious of the scarcity value of the water they use.
The key revisions to the water prices are:
- A 30% increase in water price, phased over 2 years, starting from 1 Jul 2017;
- Restructuring of the Sanitary Appliance Fee and the Waterborne Fee into a single, volume-based fee; and
- Imposition of WCT on NEWater, which is 10% of the NEWater tariff.