Forum: Higher-tier tariff applies to water use far exceeding average household consumption

We thank Mr Christopher Leong Chi How for his feedback on the water tariff (Water tariff should be based on number of people in a household, Sept 30).

In Singapore, we price every drop of water to reflect its true cost. To encourage water conservation, we apply a higher-tier tariff only to water use that far exceeds the average household consumption. Currently, the higher tariff is set at a threshold of 40 cubic m of water per month.

Over 96 per cent of households in Singapore use less than 40 cubic m of water per month. In fact, a typical household of four uses an average of about 18 cubic m monthly.

A higher-tier water tariff is applied only to the amount of water used above the 40 cubic m threshold. This is intended to send a strong signal against excessive use of water. All households pay the same tariff rate for the first 40 cubic m.

Households with the same number of people that are more careful with their water usage will pay less based on the amount of water used.

Given that the majority of households consume less than 40 cubic ma month and do not pay the higher-tier water tariff, we do not plan to adopt per capita charging that would incur higher administrative costs, which would ultimately be borne by all consumers, including more water-efficient households.

While we adopt right-pricing of water for all, targeted support is provided to lower- and middle-income households.

Besides the additional support measures announced recently by the Government to offset HDB households’ utilities bills, the Climate Friendly Households Programme will also be enhanced to include more efficient water fittings that can be bought with the vouchers. This will support households in achieving water savings.

Households can adopt simple habits, such as washing clothes on a full load and turning off the shower while soaping, to reduce daily water usage and their expenses on water.

Ridzuan Ismail
Director, Policy & Planning
PUB, Singapore’s national water agency

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