HOW BILLS WILL BE AFFECTED
In its news release, PUB described the water price increase as a 2.5 per cent hike per year since the last full revision of prices in 2018.
Asked why it did not implement smaller and more frequent increases instead of a large hike over a shorter period, PUB pointed to how water prices cover operating costs year-on-year as well as future investments on a long timeline, which make it more unlikely for recurrent adjustments to prices.
Based on data of average household water consumption from July 2022 to June 2023, Housing Board one- and two-room flats currently pay S$25 a month, while five-room flats pay S$48. These are before the Goods and Services Tax (GST).
After the full price increase, they will pay S$29 and S$57 a month respectively, PUB estimated.
HDB households and non-HDB households will see an average increase of S$7 and S$8 a month respectively.
Based on the latest survey by the Department of Statistics, water bills account for less than 2 per cent of an average household’s expenditure.
And utility bills for businesses, which also include electricity and gas, comprise less than 5 per cent of their costs, according to a Ministry of Trade and Industry (MTI) survey.
In recognition that businesses would eventually pass on the price hike to consumers, PUB said it would work with MTI and relevant authorities to advise against profiteering.
With the increase in water prices along with other cost of living concerns – such as rising public transport fares – the government will provide financial support especially for lower- and middle-income households, said PUB.
Deputy Prime Minister and Minister for Finance Lawrence Wong will also announce additional cost-of-living support measures for Singaporean households on Thursday, the Ministry of Finance said.
PUB said that one-, two- and three-room households can apply for e-vouchers under the Climate Friendly Households Programme, to offset the costs of installing water-efficient shower fittings. The programme will expand to include more water fittings in the coming year.
Companies meanwhile can tap on PUB’s Water Efficiency Fund for support in implementing water conservation projects.