4. When were water prices last raised?
Water prices were last raised by 30 per cent in 2017, also over two phases.
Announced in Budget 2017, the water prices were raised for the first time since 2000 to reflect the costs of water supply and to maintain Singapore’s water infrastructure.
5. Why are prices going up this time?
The latest price increase is due to rising operating costs and heavier investment in water infrastructure.
The cost of producing and supplying water has gone up substantially since the last price revision, PUB said.
Average electricity market tariffs have increased by about 37 per cent; construction costs have risen by 35 per cent; expenses for essential chemicals in water treatment have grown by 33 per cent; and maintenance expenses have also gone up by 18 per cent due to higher manpower costs.
With demand for water expected to nearly double by 2065 in tandem with economic and population growth, and climate change putting a strain on local catchment and imported water, PUB will also need to maintain long-term investments in water infrastructure to ensure the security and sustainability of the water supply.
This involves further developing NEWater and desalinated water, which are more energy-intensive and more expensive to produce, but are more weather-resilient.
The agency has invested more than S$3 billion in the past five years in water infrastructure. For example, it has added three desalination plans in Tuas, Marina East and Jurong Island since 2017, and is continuing to upgrade ageing local water treatment plants.