Press Release Detail

Water Price Revisions 2017

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https://www.pub.gov.sg/news/pressreleases/WaterPriceRevisions2017

Water Price Revisions 2017

19/2/2017 4:00:00 PM

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Press release

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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:<div style="text-align:justify;"> </div>- 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.Please refer to <a href="http://public.prdweb.pub.gov.sg/sites/assets/PressReleaseDocuments/WPR2017-AnnexA.pdf"> Annex A </a>for details.Water supply and demandOver the last 50 years, Singapore has built a robust and diversified water supply based on the “Four National Taps” strategy (local catchment water, imported water, NEWater and desalinated water).Singapore’s water demand has risen significantly since the last price adjustments 17 years ago, from 300 million gallons per day (mgd) in 2000 to 430 mgd today. Water demand is expected to more than double by 2060. To meet increasing demand, PUB has expanded water infrastructure by building new plants, upgrading existing ones and expanding the potable and used water networks. Need for further investments in water infrastructureInvesting in water infrastructure is even more critical in the face of looming challenges to water security. For example, water levels at the Linggiu Reservoir have fallen to historic lows in recent months. To make our water supply more resilient against weather uncertainties as well as to meet future demand, we need to invest heavily in water sources such as desalination and NEWater that do not depend on rainfall. PUB plans to progressively increase NEWater and desalination capacity to meet 85% of our water needs by 2060.Today, we have five NEWater plants and two desalination plants. A third desalination plant in Tuas will commence operations this year, and two more desalination plants in Marina East and on Jurong Island are expected to be operational by 2020. A sixth NEWater plant will be built in tandem with the Tuas Water Reclamation Plant under Phase 2 of the Deep Tunnel Sewerage System (DTSS) project. Please refer to <a href="http://public.prdweb.pub.gov.sg/sites/assets/PressReleaseDocuments/WPR2017-AnnexB.pdf">Annex B</a> for more information on investments in water infrastructure.PUB is also laying many new water pipelines to meet growing demand in existing and upcoming population centres. At the same time, ageing sewers and water pipes have to be rehabilitated or replaced, so that assets in our water system do not fall into disrepair.Altogether, PUB will be doubling its investment to about $4 billion in total in the next 5 years.Rising costs of supplying waterAt the same time, higher costs of manpower, materials and chemicals, and more difficult and expensive development techniques (e.g. going underground) due to greater urbanisation, are raising the costs of producing and delivering water.PUB has been managing its costs over the years by improving technology and productivity. However, much of the incremental improvements have already been reaped. What remain are longer term technological breakthroughs which may take years to be proven operationally and become deployable. Hence the need to revise the price of water to reflect the latest costs of our water supply.Revised water prices for householdsOne key revision is the restructuring of used water charges. Currently, the Sanitary Appliance Fee (SAF) and the Waterborne Fee (WBF) go towards meeting the cost of treating used water and maintaining the used water network. From July 2017 onwards, the SAF and the WBF will be restructured into a single, volume-based fee. This is more reflective of the volume of used water discharged. The WBF will be increased to $0.92/m3 for households with water consumption of 40m3 or less per month. A second tier WBF at a rate of $1.18/m3 will be introduced for households with monthly consumption above 40m3 to further discourage excessive use of water.We will also revise the potable water tariff and WCT (details are in <a href="http://public.prdweb.pub.gov.sg/sites/assets/PressReleaseDocuments/WPR2017-AnnexA.pdf">Annex A</a>). Taking everything together (water tariff, WCT, and used water charges), the total price of water will go up by 30%.With these adjustments, 75% of households will see an increase of less than $18 in their monthly water bills (see <a href="http://public.prdweb.pub.gov.sg/sites/assets/PressReleaseDocuments/WPR2017-AnnexC.pdf">Annex C</a>). On average, the household water bill as a percentage of household income will remain low at around 1% even after the price adjustments.Singapore's water prices, as compared to other countries, can be found in <a href="http://public.prdweb.pub.gov.sg/sites/assets/PressReleaseDocuments/WPR2017-AnnexD.pdf">Annex D</a>. Assistance for eligible HDB householdsTo help households manage the higher water prices, the Government will provide eligible HDB households with additional U-Save rebates, ranging from $40 to $120 per annum, depending on HDB flat type.Families living in 1- and 2-room HDB flats will now receive $380 of U-Save rebates each year compared to $260 previously, while families living in 3- and 4-room HDB flats respectively will receive $340 and $300 annually, compared to $240 and $220 previously.Taking into account these higher U-Save rebates, 75% of all HDB households will see an increase of less than $12 in their monthly water bills (see <a href="http://public.prdweb.pub.gov.sg/sites/assets/PressReleaseDocuments/WPR2017-AnnexC.pdf">Annex C</a>). 1- and 2-room HDB households will on average see no increase in their water bills.Revised water prices for non-domestic sectorFrom July 2018 onwards, the water tariff for non-domestic consumers1 using potable water will be increased to $1.21/m3. The WCT will be increased to 50% of total water consumption, and the WBF increased to $0.92/m3. The adjustments will be made over two years.Non-domestic consumers using NEWater will pay the revised tariff of $1.28/m3, and $0.92/m3 for the WBF from July 2018. A WCT of 10% will be imposed on the total NEWater consumption to encourage water conservation. The NEWater tariff and the WCT will be raised in one step while the WBF increase will be phased over two years.Non-domestic consumers using Industrial Water will pay the revised tariff of $0.66/m3 from July 2017, and $0.92/m3 for the WBF from July 2018. The Industrial Water Tariff will be raised in one step while the WBF increase will be phased over two years.With these adjustments, 75% of businesses will see an increase of less than $25 in their monthly water bill. Businesses can tap on PUB's Water Efficiency Fund (WEF) to implement water saving measures. PUB will also continue to work with businesses to improve their water efficiency through the Water Efficiency Management Plan (WEMP) and the Water Efficient Building (WEB) Certification programme.Use water wiselyEveryone, whether households or businesses, has to do their part to use water prudently. This way, we can make our scarce water resources last longer. Every drop saved is one drop fewer that needs to be supplied. Consumers will also enjoy lower water bills if they conserve water (see <a href="http://public.prdweb.pub.gov.sg/sites/assets/PressReleaseDocuments/WPR2017-AnnexE.pdf">Annex E</a> for water conservation tips).The Government will continue to promote water efficient appliances and water-saving habits to drive even more water savings in households and encourage greater water efficiency in commerce and industry.For more information on the price revisions, please visit <a href="http://www.pub.gov.sg/">www.pub.gov.sg</a>. 1These prices are not applicable to shipping customers. The new potable water prices for shipping customers can be found in <a href="http://public.prdweb.pub.gov.sg/sites/assets/PressReleaseDocuments/WPR2017-AnnexA.pdf">Annex A</a>.

<div class="WordSection1" style="text-align:justify;">The Ministry of the Environment and Water Resources (MEWR) is committed to providing Singaporeans with a quality living environment. Having achieved a clean and green environment and a system in place to maintain and safeguard it, our ultimate goal is long-term environmental sustainability.Together with its two statutory boards, the National Environment Agency (NEA) and PUB, the national water agency, MEWR continues to manage Singapore's limited resources and address Singapore's environmental sustainability challenges through innovation, vibrant partnerships and co-operation across the 3P sectors - private, public and people. </div>

PUB is a statutory board under the Ministry of the Environment and Water Resources. It is the national water agency, and manages Singapore’s water supply, water catchment and used water in an integrated way.PUB has ensured a diversified and sustainable supply of water for Singapore with the Four National Taps (local catchment water, imported water, NEWater, desalinated water).PUB calls on everyone to play a part in conserving water, in keeping our waterways clean, and in caring for Singapore’s precious water resources. If we all do our little bit, there will be enough water for all our needs – for commerce and industry, for living, for life.

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