SINGAPORE: Water prices need to be revised so that national water agency PUB can continue to invest in the country's water infrastructure and sustainably cover its operating costs to ensure a reliable and secure water supply, Senior Minister of State for Sustainability and the Environment Amy Khor on Wednesday .
In accounting for the latest increase, PUB pointed to how the costs of producing and supplying water have risen"substantially" since 2017, due to external pressures. "Besides right-pricing water to safeguard our water security, it's also important that we manage the growth in our water demand. This is especially so in the non-domestic sector, which will account for about two-thirds of our water demand by 2065."What you need to know about Singapore's impending water price hike
Responding to Mr Singh's query on profits, Dr Khor said: "If you look at the financial statements of PUB, in 2020, net operating income was +S$10 million but in fiscal year 2021, net operating income, before government grant, is -S$109 million and it has actually widened to -S$264 million." A water conservation tax is one of the three components to water pricing, the other two being a tariff and a waterborne tax. The water conservation tax is a percentage of the tariff and meant to encourage water conservation. All three components will see an increase this time round for domestic and non-domestic potable water.