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  Channel NewsAsia 6 Mar 07
Water pricing structure under revision: Dr Yaacob

Today Online 7 Mar 07
Govt planning to fix a single rate for potable and used water, streamline pricing
Sheralyn Tay

INSTEAD of paying two different prices for potable (drinking) water and used water--that which runs into our sewers--Singaporean households could be paying the same rate for both types of water from next year.

Minister for the Environment and Water Resources Yaacob Ibrahim said yesterday in Parliament that his ministry is looking to streamline the two into a single price.

He gave the reassurance, however, that the pricing review would be sensitive to all users, and take into consideration all household types, including large families. "We will strive to minimise the impact on households such that on average, water users will not be worse off with the revised price structure," Dr Yaacob said.

This price review is part of a move to reflect the "holistic" manner in which Singapore manages its water resources.

In addition, the ministry will review the current Sanitary Appliance Fee (SAF)--households currently pay $3 per toilet fitting per month--as feedback has indicated that the fee was "confusing" and not reflective of the volume of water discharged.

The SAF and the Waterborne Fee will also be restructured into a single volumetric fee, Dr Yaacob said. Details of the restructured pricing will be released later in the year, closer to its implementation in 2008.

Channel NewsAsia 6 Mar 07
Water pricing structure under revision: Dr Yaacob

SINGAPORE: The government is revising Singapore's water pricing structure and this could be introduced next year.

Responding to questions on Singapore's water policies in Parliament on Tuesday, Minister for Environment and Water Resources Dr Yaacob Ibrahim said Singapore has been pricing water to reflect its scarcity and the high incremental costs of additional water supplies. Potable water and used water are also priced separately. But with NEWater, used water is channelled back into the system.

Dr Yaacob explained: "With the development of NEWater, we have now closed the water loop by channelling and treating used water for consumption purposes. As potable water and used water are now part of the same water loop, it is timely to view both as a single product. We will therefore consider moving towards charging a single price, as this better reflects the holistic manner in which we manage our water resources."

As for the Water Conservation Tax, the Minister said this is charged to encourage prudent use of water and is still relevant. Dr Yaacob added: "An important aspect of our pricing reviews has always been the impact on users. We will therefore study carefully the effect of pricing changes to the water bills of all household types, including those with large families. We will strive to minimise the impact on households such that on average, water users will not be worse off with the revised price structure."

In the past year, Singapore's per capita domestic water consumption has fallen from 160 litres a day in 2005 to 158 litres last year. This follows several initiatives to promote water conservation.

With NEWater and desalination coming onstream to boost water supply, Dr Yaacob said Singapore has enough water.

But he also emphasised that this is only sustainable if Singaporeans continue to use water wisely.

Dr Yaacob also announced that Prime Minister Lee Hsien Loong will open the country's fourth and largest NEWater plant next Thursday, March 15. The plant in Ulu Pandan has a production capacity of 32 million gallons a day. - CNA/so
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