Singapore: Price hike for water underlines resource’s strategic importance

From 1 July 2017, Singapore will experience a revision in water prices for the first time since 2000. Tariffs can be expected to move up in two separate steps, the first in July 2017 and the second in July 2018.

The Water Conservation Tax (WCT), imposed on the potable water tariff, is also included, mirroring the reality that the PUB is being outstripped by the production costs for bearing potable water. The WCT stresses that water is precious, and ensures consumers are cognizant of the value of water they use and its paucity.

The rise in costs after consistent pricing over the last 17 years can be attributed to growing operational costs and considerable investments in water infrastructure as the small island nation prepares to face the challenges brought about by climate change. The increased pricing would go into NEWater production, used water collection and treatment, desalination, reservoir operations and water treatment. The network of water pipelines found country-wide will also be expanded.

The adjusted pricing will also give the National Water Agency (PUB) enough leeway to bolster the country’s water security, deal with future demand, while also maintaining the current high value and reliability of the water supply.

Sources: The Straits Times; Channel News Asia; AsiaOne