Addressing Rising Production and Supply Costs
To meet growing production and supply expenses, Singapore’s PUB has announced an 18.2% water price hike, effective in two phases by April 2025. The first increase will be on April 1, 2024, raising the price of potable water by S$0.20 per cubic meter (cu m) to S$2.94, followed by an additional S$0.30 on April 1, 2025. For households consuming over 40 cu m per month, the price will increase by S$0.70 over two years.
Cost Drivers and Impact on Consumers
The price hike is attributed to significant increases in the cost of energy, construction, chemicals, and maintenance. PUB emphasized that electricity tariffs have surged 37%, and construction costs have risen 35%, adding substantial pressure to the utility’s operating expenses.
While three in four households will see an increase of less than S$10 monthly, some businesses, especially those with high water usage, may experience higher costs. Small and medium enterprises (SMEs) in water-intensive industries such as semiconductors, chemicals, and food & beverage are particularly concerned about the price hikes compounding existing cost pressures.
Future Water Pricing Plans
PUB explained that deferring the price hike would only lead to larger increases in the future, as the current water price is insufficient to cover production and supply costs. The agency also outlined that its long-term investments in water infrastructure are essential, with S$3 billion allocated over the last five years for projects like desalination and NEWater plants.
In line with sustainable water management, the government will continue to focus on cost-of-living support to help offset the financial burden on Singaporeans. The PUB will regularly review the pricing of water, ensuring it remains aligned with operating costs and future infrastructure investments.
