Water Price Increase – Singapore Budget 2017

The talk of the town this week was water price increase of 30% resulting from the Singapore Budget 2017 statement in parliament. 30% increase will be phased in and starting July 2017 and then July 2018.

Naturally, I looked at my home usage of water and calculated the new water bill comes 1 July 2018. The following table is the calculation based on my February 2017 water bill.

Water Services – Price increase
Current (Feb 2017) From 1 July 2018 Increase
Rates ($) $ Rates ($) $ in %
Water Tariff (usage 14.5 cu m) 1.17 16.97 1.21 17.55 3.4
Water Conservation Tax (% of water tariff) 30% 5.09 50% 8.77 + 20% more
Waterborne fee 0.2803 4.06 0.92 13.34
Sanitary Appliance fee 2.8037 8.41 0 * 0
Total water charges 34.53 39.66
Add 7% GST 2.42 2.78
Total after GST 36.95 42.44 14.8
* Sanitary appliance fee is combined into waterborne fee

Before the changes in water charges, my home’s bill on water was $36.95 inclusive of GST. After the increase in water prices, the water bill would go up to $42.44 (holding my actual water usage constant at 14.5 cu m). This is an increase of 14.8% overall, inclusive of GST.

Though the water tariff only increases by 3.4%, the killer cost component is the water conservation tax. The tax is increased from 30% to 50% on water tariff. This tax increases by 72.2% in dollar term based on our usage.

No U-Save rebate for me

Additional U-Save rebates are available for HDB householders to offset part of the increase in water prices. This does not apply for me.

Reduce water usage to reduce water charges

My only way to bring down water bill is to really reduce water usage. The more we reduce water consumption, the more savings we can have. Dollar aside, we can do our part in protecting our living environment and reduce water usage from our current level. If everyone does a bit, overall water consumption can come down. Besides the many ways of reducing water usage, one just needs to be mindful when one next turns on the water tap.

Note: The water rates change when one is a heavy user (ie more than 40 cu m).

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