The water tariff covers the costs incurred in the various stages of the water production process. This includes collection of rainwater, treatment of raw water and distribution of treated water to customers through an extensive network of water pipes throughout Singapore. The Water Tariff is charged based on the amount of water consumed. The Water Conservation Tax (WCT) is imposed as a percentage of the total water consumption to reinforce the message that water is precious from the very first drop. The WCT is pegged to a rate such that the total price of drinking water (Water tariff + WCT) would be equivalent to the cost of producing the next drop of clean water from the next available source. SP Services Ltd collects the WCT (Water Conservation Tax) on behalf of the Government.The Water Borne Fee (WBF) and Sanitary Appliance Fee (SAF) prescribed under the Sanitary Appliances and Water Charges Regulations are levied to offset the cost of treating used water and for the operations and maintenance of the used water network.
To read up more on PUB's water tariff charges, please refer to this link on PUB's website.