PUBLIC UTILITIES BOARD (Increase in revenue)

Mr Yeo Toon Chia asked the Minister for National Development and Communications whether the $18 million or 9% increase in income from electricity, gas and water in 1975, stated in the Economic Survey of Singapore. 1975, was due to the increase in consumption or to the increase in the rates of charges; and if he will ascertain from the Public Utilities Board the rates of charges for, and consumption of, electricity, gas and water in 1974 and in 1975.

The Minister for National Development and Communications (Mr Lim Kim San): Mr Speaker, Sir, the increase in revenue for the PUB for 1975 is estimated at $46 million, and not $18 million as mentioned by the Hon. Member. $18 million is the increase in the added value.

To earn the extra $46 million, the PUB has spent $207.74 million in 1974 and $285.93 million in 1975 on the provision of infrastructure necessary to meet the increasing demand for power, water and gas. In the last three years, the PUB has spent $758.35 million on capital expenditure and had to borrow $410.34 million to finance development projects.

Consumption of electricity has increased by 7.2 1% and gas by 9.47% in 1975. In both cases, there has been no increase in tariffs since February 1974, and the increase in revenue can be said to be due largely to the increase in consumption or sales.

The tariff for electricity, for the information of Members, is based on a fuel oil price of $160 per tonne, and I would like Members to note that though the price of fuel oil increased to $182 per tonne in October 1975, that is, an increase of 13.75%, the tariff for electricity has not been raised. For the time being the PUB is able to absorb this increase in fuel oil price and other higher operating costs without passing it on to consumers, largely because of increased efficiency in the generation of electricity.

Similarly for gas, because of greater efficiency, the PUB is also able to absorb increases in the price of naphtha without increasing the price of gas.

Water tariffs, however, were revised upwards in October 1975, and this was to encourage economy in the use of water. It was also because the PUB had to spend $1 37.3 million on two major water supply projects, i.e, the Upper Peirce and Kranji/Pandan Schemes, to augment our water supply, storage and treatment capacities in order to cope with increasing consumption. Consumption for 1975 increased by 8.47%. It also costs more to treat raw water which is as polluted as the kind we are getting from the Kranji/Pandan Dam. Incidentally, we are most fortunate in that we are able to complete these schemes before the recent drought. Otherwise. Members would have to miss their daily baths and would not look as clean as they do now. And if we had not completed these projects, there would have been water rationing or some other form of self-restraint would have been necessary.

Water, as we know, is becoming increasingly expensive to tap as the PUB has to develop less economic sources of supply. Excessive use and wastage of water must be discouraged and I hope members of the public and Hon. Members too will keep on reminding themselves that, rain or shine, water is precious and must not be wasted.

If the Member wants, I can read out a long list of PUB tariffs (See Appendix, cols. 611-6). Appendix - Tariffs for Water, Electricity and Gas Effective October 1975 (Cols 611-616)

Mr Yeo Toon Chia (Kampong Kapor): (In Mandarin): Mr Speaker, Sir, I thank the Minister for his detailed reply, which will give consumers a clear idea on how to calculate their consumption rates.