Singapore’s national water agency, PUB, announced a significant increase of 18.2% in water prices over the next two years, attributed to “substantially” higher costs in production, electricity, construction, and other key areas. This marks the first hike since 2017. The price for potable water will rise by S$0.50 per cubic meter (cu m), with the increase phased in over two stages: S$0.20 on April 1, 2024, and S$0.30 on April 1, 2025.

For most households, the impact will result in less than a S$10 monthly increase, while three out of four businesses will see their monthly water bills rise by under S$25. PUB clarified that about 4% of households, those with higher consumption, would experience steeper increases, especially those using more than 40 cu m per month.

NEWater, the recycled water primarily used in industrial sectors, will also see a 7.3% rise, climbing by S$0.17 to S$2.50 per cu m by April 2025.

The price hike is necessary to cover escalating costs, with electricity tariffs rising by 37%, construction expenses up by 35%, and water treatment chemical costs increasing by 33% since the last price revision. PUB emphasized that delaying the increase would result in even larger hikes in the future.

Although concerns were raised by businesses, particularly those in the manufacturing and service sectors, about the cumulative effect of rising costs, PUB and other government agencies plan to explore support mechanisms, including potential grants for water-saving technologies.

This price adjustment will partially cover PUB’s S$3 billion investment in water infrastructure over the past five years and is intended to ensure long-term water security as demand is expected to double by 2065 due to economic and population growth.