UTILITIES BILL

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UTILITIES BILL

21.

Mr Steve Chia Kiah Hong asked the Acting Minister for Community Development, Youth and Sports (a) if he is alarmed by the reported figure that "on average, 3,000 homes every month are without power because of arrears" in payment of utilities bills, in wealthy Singapore; (b) what is the Government doing to help those poor families living without water and electricity; and (c) whether the estimated number of homes without water and power will increase in the next five years as the economy trudges along.

Dr Vivian Balakrishnan: At the end of August 2004, there were about 3,000 homes which were without power because of utilities arrears. We are concerned when families are unable to afford their power as it is a basic need. However, most of these homes were 4-room HDB flats or larger. Some of the homes were condominiums or landed property. In addition, most

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of these families could make some payment and would get their power restored in the process. In general, the families would approach SP Services with some payment to reconnect their supply within two weeks of supply disconnection.

As the economy improves over the next few years, we expect the number of homes with utilities arrears to decrease. For example, between August 2003 when the recession was at its height, and August 2004, the number of new accounts in arrears (ie, those families defaulting on their bills for the first time) has halved.

Nonetheless, there are some families who may have financial difficulties in paying their power bills. They would therefore accumulate arrears. For these families, SP Services will first work with them to better understand their difficulties and develop a suitable instalment plan to clear up their arrears. We would like to assure Mr Chia that the power supply for these families will not be terminated simply because they have chalked up arrears. Families will be given ample opportunities to sort out their utilities financing, including paying their arrears through instalments. Before any disconnection of supply, SP Services will send at least two reminders and a final notice of intended disconnection to the home within eight weeks. SP Services would only terminate the power as a last resort.

Through the Community Development Councils (CDCs), the Government also assists families who are in financial hardship to offset their utilities expenses. Needy families living in HDB rental housing may apply for the Rent and Utilities Assistance Scheme (RUAS), whilst those living in purchased flats may apply for the Interim Financial Assistance Scheme (IFAS). Depending on the family's circumstances, we may grant utilities assistance of up to $90 a month. In addition, Citizens Consultative Committees (CCCs) also offer local schemes to assist families who need help with their utilities bills.

SP Services will be rolling out a pre-paid meter scheme from May 2005. This scheme will be available to families residing in HDB flats whose electricity supply has been disconnected due to payment default. Under this scheme, prepaid electricity meters will be installed at such flats. This would help the families consume what they can afford to pay, and therefore prevent their arrears from increasing.

Families with difficulties paying their utilities bills should approach SP Services early to make alternative payment arrangements. Those who are subsequently still in need of financial assistance with their utilities arrears should approach their Community Development Council so that the appropriate help can be extended in time.