Mr. Singh questioned why the current increase was so much shorter than it was prior to the most recent price revision in 2017. Additionally, he inquired as to whether there was room to postpone an improve. & nbsp,
Is there any room, in terms of policy, for the authorities to postpone this increase in order to protect the authorities’ financial gains from water and water supply?
Dr. Khor retorted that because of the mentioned cost pressures, the cost of producing and supplying waters has exceeded existing water prices, necessitating a price revision to guarantee PUB’s ability to effectively protect operating costs and keep funding water infrastructure. & nbsp,
In response to Mr. Singh’s question about profits, Dr. Khor said:” If you look at the financial statements of PUB, net operating income was S$ 10 million in 2020, but in fiscal year 2021, it is – S$ 109 million and has actually widened to$ 264 million.”
While she noted that it has improved as a result of government grants, she also added that any online income that was generated was ploughed again and reinvest to cover the water system’s operating costs, but it was insufficient. & nbsp,
To finance long-term infrastructure projects, PUB had to borrow money from the market and issue bonds, such as S$ 800 million in green bonds last year. & nbsp,
Therefore, there is no income. According to Dr. Khor, everything is basically used or reinvested. & nbsp,
Mr. Singh posed the next query,” Will the government reevaluate the value of the water conservation tax?” & nbsp,
One of the three elements of water sales is a liquid conservation tax; the other two are tariffs and contaminated taxes. The waters conservation taxes, which is a portion of the price, is intended to promote water preservation. This time around, private and non-domestic drinkable water will see an increase in all three parts.
Mr. Singh questioned the value of the water conservation taxes in comparison to the execution of more water-efficient features in the home and stated that home water consumption designs have been declining.
In order to promote a lower consumption of water and achieve the goal that the government is aiming for with regard to making sure that every Singaporean views the initial decline of fresh water as an extremely limited source, Mr. Singh stated that” water efficiency features are”‘ a more powerful policy tool. & nbsp,
He questioned whether water useful features were a more likely source of household water savings or whether the water conservation tax was serving the policy purpose for which it was intended. & nbsp,
Both were required, Dr. Khor retorted. & nbsp,
The water conservation tax is actually intended to encourage consumers to use water correctly as well as to reflect the value of water scarcity.
Mr. Leong enquired as to whether it was possible to replace the two-tier pricing with many bands. & nbsp,
This is more equitable because, as you stated, larger consumers in the non-household industry may account for the majority of the future increase in water consumption, he said. & nbsp,
For every 1,000 gallons, or per cubic meter, before tax for the majority of households, potable water now costs S 2.74( US$ 2.01 ). & nbsp,
Now, communities that use more than 40 cubic meters per month must pay an additional S$ 3.69 per cubic meter. Less than 4 % of homeowners would this, Dr. Khor noted in her response to Mr. Leong. & nbsp,
She continued by saying that each month, the typical household uses approximately 15 cubic meters of water.
She stated that the higher charges was intended to encourage people who use more water to” use water wisely and save water.” & nbsp,
Mr. Leong further enquired as to whether the government could vouch for the fact that the cost of obtaining water from local sources was entirely factored into the present waters pricing. & nbsp,
If so, you Singaporeans anticipate that the ocean price won’t increase significantly after the Johor water supply agreement expires in 2061, barring any unanticipated changes in ingredient costs, such as energy?
Dr. Khor retorted that Singapore uses a combination of sources, including NEWater, imported water, and native catchment to assure water security. & nbsp,
” When I say the cost of producing the second drop of water, we also consider investments, particularly long-term opportunities to meet future water need.” And that will take into account the fact that there will be an increase in water demand, necessitating the investment of new abilities, she said. & nbsp,