Effect of Rising Energy Prices on Cost of Singapore's Water Production

Mr Edward Chia Bing Hui asked the Minister for Sustainability and the Environment in view of rising energy costs (a) how these may affect the cost of water production, particularly desalination and NEWater; and (b) how the Ministry will ensure that water prices remain stable and affordable for households and businesses.

Ms Grace Fu Hai Yien: While rising energy prices increase the Public Utilities Board's (PUB's) operating costs to produce and supply water, particularly for desalinated water and NEWater which are more energy-intensive, the near-term cost impact is moderated as PUB has fixed-rate contracts for part of its electricity supply.

We regularly review the water price to ensure that it reflects the cost of supplying the next drop of water, while exploring technologies to bring down the energy intensity of our processes.

The Government also provides targeted support for eligible households in the form of U-Save rebates to help offset utilities expenses.