SINGAPORE — Over the past year, Ghim Moh resident and fruit seller Anna Chan, 56, has been making more effort to cut down on electricity and water consumption by switching her old air-conditioner and washing machine to energy-saving models.

She recycles water from her washing machine to clean the toilets and floors, and uses water from washing vegetables for her plants. She also continually reminds her family members not to leave the tap running unnecessarily.

With water tariffs and electricity bills set to go up by more than 20 per cent from this month, Singaporean homeowners – such as Ms Chan – and businesses are tightening their belts, and keeping a close watch on their energy and water consumption as they brace themselves for the price hikes.

Ms Chan’s efforts have seen her reducing her utilities bill to about S$60 per month. “Knowing that it’s now going to be (more expensive), we definitely have to cut down our usage… If not it’s very heart pain,” she said in Mandarin.

Taxi driver Kent Chia, 46, forks out about S$100 monthly in utilities for his five-room flat, and his family-of-three is “extra mindful” of electricity and water usage, and they “save where we can”. They have a washing machine that uses less water, and they plan to wash dishes and utensils in a basin instead of individually.

Housewife Chuang Pek Yah, 62, who lives in a condo in Bukit Timah, tries to save money by dimming the ceiling lamp, and she is considering doing the laundry every other day, instead of daily.

But Madam Chuang admits that it is tough to shake off habits such as her thrice daily showers. That goes up to five times a day when she does housework in humid weather.

Her family-of-four already pay S$100 a month for their water bill, and a further fee hike would lead to her “getting very frustrated”.

Madam Chuang is one consumer who is already feeling the pinch from water hikes. The first phase of a 30 per cent increase in tariffs kicked in last July after remaining unchanged for 17 years, with the second phase starting this month.

The higher water prices spurred households to cut water consumption last year from 148 litres to 143 litres per person per day. This was the sharpest drop in at least a decade, said the Minister for the Environment and Water Resources Masagos Zulkifli during the Committee of Supply debate in March. 

The dip was due to the increase in water prices, adoption of water-efficient fittings and appliances, as well as the wetter weather, said national water agency PUB.

HELP FOR PRICE HIKES

Electricity prices will also go up by 6.9 per cent over the next three months, as utilities provider SP Group will be charging 1.5 cent more per kilowatt hour (kWh) between July 1 and Sept 30,  bringing the price to 23.65 cents per kWh. SP Group had previously attributed the hike to the higher cost of natural gas for electricity generation.

While electricity tariffs continue to rise – the first quarter of 2018 hit a new high in more than two years – it can change over time due to the volatility of oil prices. 

But some households will get help to manage the price hikes, as the Ministry of Finance announced on Monday (July 2) that about 900,000 Singaporean Housing and Development Board households will receive the next instalment of the Goods and Services Tax (GST) Voucher – Utilities-Save (U-Save) rebate this month. It is expected to come up to S$280 million over four quarters, starting from July.

However, local hawkers told TODAY that they are forced to swallow the cost increases, as raising food and drink prices will only drive away customers.

Some of them, including a 56-year-old noodle stall owner in the Holland Drive Food Centre – who declined to be named – have resorted to using fewer ingredients and serving smaller portions. His water bills come up to S$300 a month.

A fruit juice stallholder at Ghim Moh Market and Food Centre who only wanted to be known as Mr Giam, 57, said that it would be “easier” to raise the costs of drinks when the GST is raised from 7 to 9 per cent in the future.

COMPANIES FEEL THE HEAT

Businesses here are also feeling the pinch from price hikes.

Mr Lee Soon Kiat, executive committee member of the Singapore Semiconductor Industry Association, noted that operating costs for electronics manufacturing firms, including semiconductor companies, have been increasing steadily.

Depending on the size of the firms, costs could rise further to up to S$10 million, as they use a lot of water for their processes.

While companies are already using energy efficient equipment, and clamping down on water usage, the increase in water hikes may be “enough to wipe out all our efforts from the previous years”, said Mr Lee.

He warned that the electricity and water tariffs, as well as carbon tax levied next year, would add to firms’ financial costs and affect profit margins. As a result, Singapore could risk a mass exodus of companies to more competitive business markets in China and South-east Asia.

While Mr Lee said most companies have accepted the price hikes, he added that “the Government has to adopt a consultative approach (going forward), and to avoid any unnecessary hikes” that could affect its competitiveness in the manufacturing sector. 

Other firms such as Malaysia Dairy Industries are adopting measures to further reduce water usage. These include installing more water meters in the factory, encouraging staff to be more aware and to make timely reports when they spot faulty taps or water leakages instead of leaving it to the maintenance team.

General manager Leong Yin Hoe said: “Being in the food and beverage industry, we need water for our processes and for cleaning, so it’s inevitable that we have to be mindful of (how we use) our resources.”

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