The water price is revised in two phases. The first revision took place on 1 July 2017 and the second revision will take place on 1 July 2018.
Heavy investments in water infrastructure, coupled with rising operational costs, have made the increase in water price necessary. We are upgrading our water system to make it more resilient, especially to face the challenges posed by climate change. The revised water price will enable PUB 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 as well as 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. This tax 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.
At the same time, from 1 July 2017, the Government has increased the annual GST Voucher - U-Save rebate for eligible HDB households by between $40 and $120, depending on the flat type. This increase is permanent.
In total, eligible HDB households receive between $220 and $380 in U-Save rebates per year, which are automatically credited to their utilities account. The average change in water bill after increased U-Save rebates is given in the table below.
(Click on image for an enlarged view)
here for the press release on
Water Price Revisions 2017.
Water Price Revisions 2017 brochure which comes in 4 languages [PDF].