Raise water prices by as much as 100% to reflect production cost: Economist

[skyleon]

By Liyana Othman
Posted 25 Feb 2017



SINGAPORE: Faced with the news that the price of water will increase by 30 per cent over the next two years, Professor Ng Yew-Kwang is of the opinion that the hike should be even larger, to reflect the cost of water production.

"In my view, it's too little," he told Channel NewsAsia on Friday (Feb 24). "From an overall economy point of view, we can increase it even more.

"I would prefer at least 50 per cent - if not (a) 100 per cent (hike)," said the Nanyang Technological University economics professor.

Prof Ng pointed out that water prices have not been raised since 2000 – nearly two decades ago. He added that it is also costly to produce water - and how much the public pays has to reflect this.


continue reading here : http://www.channelnewsasia.com/news/...t/3547674.html

Really need to increase water prices some more ? You must be kidding right ?

[Victronica]

This professor must be getting commission from those greedy white bastards

[Boarding]

I very upset because never tell us the water revenue and profit/loss but just want to increase.

[lipe]

.


Do they know the impact of water price increase on sex and procreation?


Sex providers will increase their price due after sex - same amount of water but cost more for washing up.


Taking shower in health centres or spas will cause more. Patrons will pay more.


In HDB, even with Conservancy Fees subsidy, married couples will have less sex in order to avoid consuming more water. Less sex, less chances of making babies.


Take above with a pinch of salt. But you got to wash up - cost more again.


.

[skyleon]

Operating cost of water system jumped S$0.8b in 15 years

Published: 4:00 AM, February 24, 2017


SINGAPORE — It cost about S$1.3 billion to operate Singapore’s water system in 2015, compared with S$0.5 billion in 2000, national water agency PUB has disclosed.

Over those 15 years, it invested about S$7 billion in water infrastructure, and will pump in about S$4 billion over the next five years from 2017 to 2021 to boost the infrastructure and resilience of the water system to meet growing demand.

The agency shared these figures in response to TODAY’s queries on how it determined the 30 per cent hike in water price that was announced in the Budget statement on Monday.

The increase includes all the components of the total water price, namely the water tariff, the water conservation tax and used water charges.

PUB said that in 2015, the S$1.3 billion was spent on water treatment, reservoir operations, NEWater production, desalination, used water collection and treatment, and the maintenance of the island-wide network of water pipelines, among others.

“Over the last 17 years, costs have increased and adjustments are needed to reflect the latest costs of water supply. The increase in water price will also allow us to continue investing ahead of time so all of us can continue to enjoy a high quality and reliable water supply,” a PUB spokesperson said.

Water is priced to reflect the cost of water supply and the scarcity value of water, PUB said.


continue reading here : http://www.todayonline.com/singapore...-s08b-15-years

[skyleon]

Water price hike a key concern at post-Budget forum


Many attendees wanted to know whether Govt rebates would help offset higher costs


By Faris Mokhtar

Published: 4:00 AM, February 24, 2017

Updated: 8:05 AM, February 24, 2017



SINGAPORE — The impending increase in water prices was a key issue raised at a post-Budget forum yesterday, with participants voicing concerns over whether rebates would help to mitigate the higher costs, as well as the trickle-down effect that the hikes would have on prices of other goods, such as coffee and tea.

Attended by about 120 members of the public, the forum — organised by public feedback unit Reach — was the first such exercise held since the Budget was unveiled on Monday.

Since the Budget statement was delivered, REACH has received more than 1,000 items of feedback through its platforms, with the top three concerns raised being the water price hike, support for young families and the personal income tax rebate.

Taking the first three questions from the participants who touched on the water price hike, before the session was closed to the media, Senior Minister of State for Finance and Law Indranee Rajah, who chaired the session, reassured them that the U-Save (Utilities-Save) rebates, which the Government will be giving out, would lessen the cost burden on households.

She noted that those living in one- and two-room flats will not, on average, see any increase in their monthly water bills, while families staying in three-room flats and above will see, on average, an increase of about S$2 to S$11 in their monthly water charges.

Announcing the Budget on Monday, Finance Minister Heng Swee Keat said water prices will rise by 30 per cent from July 2018, with the first of two rounds of water price hikes to kick in this July.

Addressing the trickle-down effect that the water price increase would have on the cost of other goods such as coffee and tea, Ms Indranee stressed that the cost of such goods “should not and ought not” go up.

She noted that, currently, firms are charged S$2.15 per cubic litre for the portable water that they use, and after the full water price hike kicks in next year, this will go up to S$2.74 cents, an increase of 59 cents. This, she added, would have very minimal impact on the price of coffee and tea.

Speaking to reporters, Ms Indranee said that there is a need to price water based on market realities, to take into account the cost of producing water, such as manpower and infrastructure cost.


continue reading here : http://www.todayonline.com/singapore...t-budget-forum

[skyleon]

Wafer, petrochem industries to be hit hardest by water hike

Ang Hwee MinElaine Lee


Feb 22, 2017 06:00 am


Not all industries will be hit hard by the water price increase.

Industries that use significant amounts of non-potable water, including wafer manufacturing and petrochemical industries, will be most affected, capital projects and infrastructure partner of PwC Singapore Lee Seng Chee told The New Paper.

"This is in contrast to other industries that may come to mind, such as laundry and food and beverage," he said.

Water prices will increase for the first time in 17 years, Finance Minister Heng Swee Keat said on Monday.

Including taxes, the prices will go up by 30 per cent.

At zi char stall Hong Sheng Restaurant in Toa Payoh, owner Madam Lam said it spends $750 a month on its water bill.

"If they increase the price of electricity, we can still try to work with it by not turning on our lights so often.

"But water is a necessity, and we have to use it daily to cook our food and keep our utensils clean," she said.

Not all businesses are expected to pass on the higher costs of water to consumers, reported The Straits Times.

"Water makes up between 5 and 10 per cent of business costs for coffee shop stalls, so I don't think the hike will affect coffee shop operators much - the price for a cup of coffee is unlikely to increase for customers," said Mr Hong Poh Hin, chairman of the Foochow Coffee Restaurant and Bar Merchants Association, which represents 400 coffee shops.

Mr Kurt Wee, president of the Association of Small & Medium Enterprises, told The Straits Times the water price hike will impact manufacturers and industries that use a lot of water, and they may not be able to absorb the extra costs.

For local restaurant chain The Soup Spoon, whose menu items are 85 per cent water-based, the hike will be "steep", executive director and founder Anna Lim told TNP.

"Being one of the highest consumers of water in the F&B industry, we are re-looking our prices and working out the numbers to see how it is going to impact us," she said.

A spokesman for ABR Holdings, which runs chains such as Swensen's and Yogen Fruz, said water is a small component of its entire dish price, and it will not be planning to pass on any costs to consumers.

"We are more concerned about the cost of food ingredients as it is usually higher than water cost."

Dr Teo Ho Pin, coordinating chairman of the 15 town councils run by the People's Action Party said the hike will inevitably affect operating expenditure, reported The Straits Times.

He said: "Town councils will work closely with our partner agencies to explore more water saving measures."

Executive committee member of the Singapore Semiconductor Industry Association Lee Soon Kiat called for government support and incentives to encourage the industry to do more beyond its current implemented high average of 60 to 70 per cent water recycling.

continue reading here : http://www.tnp.sg/news/singapore/waf...est-water-hike

[skyleon]

Is the Government not being truthful with the expected increase of water prices?

By Terry Xu on February 24, 2017


Finance Minister, Heng Swee Keat said in the Budget 2017 speech in Parliament, “Water prices were last revised in 2000, almost 20 years ago. We need to update our water prices to reflect the latest costs of water supply,”

He noted that the water prices including taxes, will go up by 30 per cent in two phases. The first hike will be from 1 July this year, and the second from 1 July next year. Highlighting that the price increase will go towards maintaining Singapore’s water infrastructure, and more expensive sources of water such as desalination.

So just 30% increase?

price increase

But if one were to look at the projection of price increase, one should note that apart from the increase of tariff on water, the Water Conservation Tax also increased by 20% and 15% for usage under and beyond 40 cubic metre.

The Waterborne Fee has been adjusted up 228% increase with the removal of the Sanitary Appliance Fee.

These increases were clearly not mentioned in Mr Heng's speech, he merely emphasised that the water prices will be increased 30%.

So when TOC wrote to PUB to seek more clarification on the increase earlier this week, it wrote back stating, "Potable Water Tariff, Water Conservation Tax and Waterborne fee will go up in two steps, in Jul 2017 and in Jul 2018. Do visit our website for more details on the water price revision and find out more on how you can save water."

In PUB's further clarification to TOC's query, it stated that for households who use less than 40m3, the Water Conservation Tax (WCT) currently at 30% of water tariff will go up to 50% in July 2018. The WCT for water usage beyond 40m3, will be raised from the current 45% to 65% in July 2018.

The 30% as mentioned in the Finance Minister’s speech refers to the final price of water (which comprises Water Tariff, WCT and Waterborne Fee), i.e. ($2.74 - $2.10)/$2.10 = 30%.

The disproportionate increase of water prices

So now, what some may not realise is that while Mr Heng said in his speech that the price will be a 30% increase by 2018, the increase may not be that simple as what Mainstream Media and Government have been trying to make it sound.

Why is the projected increase not a flat rate of 30% as what the Finance Minister put it to be?

If one were to look at the costing, one will notice that the Sanitary Appliance Fee is a fixed cost based on how many toilet fittings that a residence has. The new pricing schedule removes this fixed cost and absorbs it into the Waterborne fee. What was previously $0.28 per cubic metre is now $0.92.



continue reading here : http://www.theonlinecitizen.com/2017...-water-prices/

[skyleon]

PUB: $1.1b profits last 7 years – how much since PUB was formed 53 years ago?

By Leong Sze Hian on February 25, 2017


With reference to my article “Water price: Have costs, but no revenue?” (Feb 24) – Terry Xu, the editor of The Online Citizen had talked to me about the Public Utilities Board’s (PUB) annual reports.

No mention of revenues and profits, only costs?

Since there was no mention of revenues or profits in the media reports in the Straits Times and Channel NewsAsia – here’s what I have been able to compute from the PUB’s annual reports available in its web site.

$166.8m profits in FY2015

The Net Income after Government Grants and after Contribution to GCF (Government Consolidated Fund) and Taxation (Profits) for FY2015 was $166.8 million – an increase of 77.3 per cent compared to say FY2010’s profit of $94.1 million.

Last 7 years’ profits – $1.1b?

The total profits in the last seven years (only seven years’ annual reports in the PUB’s web site) was $1.0909 billion.

How much profits in the last 53 years?

Since the PUB was formed in 1963 – how much profits has it made in the last 53 years?

If we include accumulated interest – how much would it be for the last 53 years?

Projected profits – $220m a year?

Since the increase in domestic water prices will be from 30 to 41 per cent – if we assume the overall increase to be say about 32 per cent – the projected profits may be about $220 million ($166.8 x 1.32) a year.


continue reading here : http://www.theonlinecitizen.com/2017...-53-years-ago/

[skyleon]

What is the revenue of water sales if costs are revealed

By Leong Sze Hian on February 24, 2017


Cost of supplying water has more than doubled

I refer to the article “Cost of supplying water has more than doubled: PUB” (Straits Times, Feb 24).


“The cost of developing and operating Singapore’s water supply system has more than doubled in 15 years.

In 2000, it cost about $500 million to run the system, national water agency PUB said yesterday. This included water treatment, reservoir operations, Newater production, desalination, used-water collection and treatment, and the maintenance of water pipelines. By 2015, the cost had risen to $1.3 billion.

Citing the figures following media queries, the PUB said: “(The) water price needs to be raised to reflect rising costs.”

Yesterday, the PUB said that since the last price increase in 2000, the cost of treating and supplying water has been going up.

The resources needed for the task, such as chemicals, materials and manpower, have become more expensive over the years, said the water agency.

It also has to rely on more costly methods to develop Singapore’s water system, as the environment becomes increasingly urbanised, the PUB added.

For instance, it can no longer just dig trenches to lay water pipes underground. As Singapore becomes more built up, it has to use pipe-jacking, a more expensive method which involves assembling pipes into shafts and then pushing them into position with a hydraulic jack.

From 2000 to 2015, the PUB also invested $7 billion in water infrastructure, it said.

The agency expects to spend another $4 billion on such infrastructure from this year to 2021, to meet growing demand and boost the resilience of the water system, especially to face the challenges posed by climate change.”

So many reasons, but the obvious data is missing?

So many reasons and so many words to explain why the need to increase water prices? – but the most obvious and important piece of information is missing – what is the revenue every year until now, for the last year, and the projections into the future?

Got costs, but no revenue?

Without these information – how to we relate the revenue to the costs, and the profits?

Cost vs price per cu m?

The bottom line question is arguably, "what is the cost per cu meter versus the price per cu meter?"


continue reading here : http://www.theonlinecitizen.com/2017...-are-revealed/


Disclaimer : Please note that I am not related in any way to all the links in this thread . Just sharing as I feel that this water price increase will definitely have a big impact on our disposable income . Do you think that is right for the men in white to be doing such a thing when the economy is so bad . When so many of us are unemployed ?


A Good government duty is to make its citizens' lives better and not harder .

[winphenom]

It's not only water that is going up forummers, electricity is projected to increase also due to carbon tax increase which indirectly caused everything associated with it to increase. Once all increase, food prices will inadvertently increase more folds.
Year of the expensive Rooster.

[fastfoot]

Those greedy white pigs. Must vote them out of office .

[SiaSuay]

After they have depleted our CPF .

Car park fees increase
Gas tariffs increase
Water price increase
Carbon tax introduce .
COE every time increases
SC&C also increase

Next maybe will increase

GST
New road tax system
HDB flat increase
Medical bill increase


Conclusion Singapore will be a more expensive place to live in .

[nitecrawllerr]

Originally Posted by fastfoot

Those greedy white pigs. Must vote them out of office .

No use lah. Most sinkies been grumbling n kpkb. But when come GE sinkies still vote for MIW. So really cant blame the garment. Afterall 70% gave MIW a landslide victory in the last GE.

[sadfa]

Originally Posted by SiaSuay

After they have depleted our CPF .

Car park fees increase
Gas tariffs increase
Water price increase
Carbon tax introduce .
COE every time increases
SC&C also increase

Next maybe will increase

GST
New road tax system
HDB flat increase
Medical bill increase


Conclusion Singapore will be a more expensive place to live in .

You dont get it La. Many of the big companies like singshitel n banks are owned n controlled by garbagement. So the money they earned from sporeans, go to garbagement as well
_______
Exchange points hidden ma