SINGAPORE, Feb 7 — Water prices will be raised, with details to be announced during this year’s Budget, said Minister for the Environment and Water Resources Masagos Zulkifli today. 

Speaking during a visit to Tuas Desalination Plant 3, which is 60 per cent completed, the minister cited the anticipated higher costs of producing water and the need to price water right in view of the less reliable weather as reasons behind the first price adjustment in 17 years.

Noting that water is currently underpriced, Masagos said: "Going forward we are seeing higher costs in producing water. This is not just because of the plant. We also have to take in consideration urbanisation and therefore our pipes have to be dug even deeper.

"At the same time we are also looking at renewing old plants, old transmission pipes and this will definitely add costs to our operations.”

Masagos also noted that Singapore needs to be ready for weather that is "less reliable than before”.

To ensure that the country is "operationally sound” in producing water, "we have to price water right”, he added.

Currently, water tariffs are tiered, depending on whether it is for domestic, non-domestic or shipping use.

For domestic users, there are two levels of tariffs (S$1.17/RM3.67 per cubic metre or S$1.40 per cubic metre), depending on consumption volume.

Water conservation tax is 30 per cent of the tariff, before GST.

Mr Masagos did not give an indication of how much prices would go up by. He said there was a need to balance the sustainability of supply and reflect the scarcity of water.

Singapore’s four national taps are water from Malaysia, the local reservoirs, desalination and NEWAter.

There is no need for water rationing at the moment, Masagos said.

In the past year, the Linggiu reservoir that helps Singapore to draw its entitlement of water from the Johor River has hit record lows and Minister for Foreign Affairs Vivian Balakrishnan recently warned of a "significant risk” of Linggiu falling to zero per cent this year, if it turns out to be a dry year.

Singapore gets about half of its water from Malaysia. — TODAY