Singaporeans will be paying more for water in 2025, says PUB on Sept 27.
The national water agency announced that water will cost consumers an additional 50 cents per cubic metre (or 1,000 litres of water) by 2025. The increase will be made in two phases. The agency will increase the cost of water by 20 cents per cubic metre on April 1, 2024, while another 30-cent increase will be made on April 1, 2025.
The current potable water price is set at $2.74 per cubic metre.
The increase comes just days after the Public Transport Council announced that it would increase its fares for buses and trains on Sept 18. The fare hike will take effect in December. Singapore Post S08 (SingPost) also announced that it would increase its rates for standard regular mail on Sept 19.
The price hike comes at an unfortunate time where interest rates and inflation rates are at all-time highs. In this instance, the higher cost of water, which is a basic need, could affect the prices of food and drinks and more.
In its press release, PUB explained that the cost of producing and supplying water has increased “substantially” since its last price revision in 2017 due to external factors including higher electricity market tariffs and construction costs.
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The agency added that average electricity market tariffs have increased by about 37% while construction costs rose by 35%. Expenses for essential chemicals in water and used water treatment have increased by about 33% while maintenance expenses rose by 18%.
According to PUB, the increase means households in Singapore will be paying an additional $4 to $9 a month for water come 2025.
Further to its statement, PUB said that three in four households will see an increase of less than $10 monthly before government support while three in four businesses will see an increase of less than $25 monthly.
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Certain households will receive financial support to mitigate the impact of the price increase, says PUB.
Singapore's demand for water is projected to almost double by 2065 in line with the economic and population growth.
"Climate change will also put greater strain on our local catchment and imported water which are weather-dependent," says PUB.
"To ensure the security and sustainability of our water supply, we will need to maintain long-term investments in water infrastructure and further develop our weather-resilient water sources such as NEWater and desalinated water, which are more energy-intensive and costlier to produce," it adds.
The "four national taps" that Singapore relies on for a "safe and reliable water supply" are local catchment water, imported water, NEWater or reclaimed water and desalinated water.
