While we were gearing up for a water price hike following an earlier declaration of intent from MEWR chief Masagos Zulkifli, we certainly didn’t expect a 30 percent increase.
The 30 percent hike was announced by Finance Minster Heng Swee Keat in his Budget speech today.
Mr Heng said that the fee increase is due to the higher cost of supplying water.
The 30 percent water price hike is set to take place over 2 years, starting from 1 July 2017.
It is the first time in 17 years that water prices have been raised.
The increase will be seen in the restructuring of the Sanitary Appliance Fee and the Waterborne Fee, which will be combined into a single volume-based fee.
The WBF will increase to 92 cents per cubic metre for households that use 40 cubic metres of water of less per month.
For households that use more than that amount per month, they will pay a second-tier rate of S$1.18 per cubic metre.
The potable water tariff and the water conservation tax will also be adjusted.
The tax amount for households that consume more than 40 cubic metres of water a month will eventually increase to S$1.52 from July 2018.
This is up from the current S$1.40.
Water conservation tax, which is based on the water tariff, will go up to 65 percent from July 2018. – an increase from the current 45 percent.