Putting Money In The Bank, Trying To Deal With My Electricity Bill and Increase In Water Bill
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Singaporeans are the “complain kings” of Southeast Asia
According to a study done on online shopping aggregator, iPrice, Singaporeans are 20% more likely to complain than our Thai counterparts.
Of the many things we complain about, the frequent topics are:
- Influx of foreigners
- Politics
- SMRT
- Inconsiderate people/ drivers on the road
- Increasing costs of living
A better illustration of the ever increasing cost of living will be this video:
The main issue with the boy in this video is that he puts all his savings into a Piggy Bank. Hence, when he was slapped with a price increase for the telescope he was aiming for, he could not afford it.
Determined not to commit the same mistake, we put money in the bank 10 years ago looking to beat any possible increment in utility bills.
Price of water in Singapore over the years
Singapore’s water price was last revised in the year 2000. That was before Finance Minister Heng Swee Keat announced a 30% water hike in his budget speech in February 2017.
With theĀ final change in water price kicking in on 1 July 2018, we look at the difference in water price then and now:
Before 1 July 2017 | From 1 July 2017 | From 1 July 2018 | ||||
---|---|---|---|---|---|---|
0-40 cubic metre | >40 cubic metre | 0-40 cubic metre | >40 cubic metre | 0-40 cubic metre | >40 cubic metre | |
Water price per cubic metre (Domestic) | $2.10 | $2.61 | $2.39 | $3.21 | $2.74 | $3.69 |
source: www.pub.gov.sg
With the price in mind, we look at the average water consumption of Singaporeans to have a good analysis of theĀ amount spent on their utility bill.
Average water consumption for Singapore households
Based on SP Group’sĀ tabulation, here are the average monthly water consumption in term of household types.
Household Types | Average | Jun 18 | May 18 | Apr 18 | Mar 18 | Feb 18 | Jan 18 | Dec 18 | Nov 17 | Oct 17 | Sep 17 | Aug 17 | Jul 17 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
HDB 1-Room | 8.55 | 8.9 | 8.5 | 8.4 | 7.8 | 8.3 | 8.5 | 8.5 | 8.7 | 8.8 | 8.5 | 8.7 | 9.0 |
HDB 2-Room | 11.25 | 11.5 | 10.9 | 11.0 | 10.4 | 10.8 | 11.2 | 10.9 | 11.7 | 11.7 | 11.3 | 11.6 | 12.0 |
HDB 3-Room | 12.70 | 13.1 | 12.6 | 12.7 | 12.1 | 12.5 | 12.6 | 12.3 | 13.1 | 13.1 | 12.5 | 12.8 | 13.0 |
HDB 4-Room | 16.18 | 16.5 | 16.0 | 16.3 | 15.4 | 15.9 | 16.1 | 15.7 | 16.8 | 16.7 | 16.0 | 16.3 | 16.5 |
HDB 5-Room | 17.24 | 17.6 | 17.1 | 17.5 | 16.5 | 16.9 | 17.0 | 16.7 | 18.0 | 17.8 | 17.0 | 17.3 | 17.5 |
HDB Executive | 19.38 | 19.7 | 19.1 | 19.8 | 18.7 | 19.2 | 19.3 | 18.7 | 20.2 | 20.1 | 19.0 | 19.2 | 19.6 |
Apartment | 13.57 | 13.9 | 13.7 | 13.8 | 13.3 | 13.4 | 13.4 | 13.2 | 13.8 | 14.0 | 13.7 | 13.2 | 13.4 |
Terrace | 25.90 | 26.2 | 25.6 | 26.7 | 26.0 | 25.7 | 25.4 | 25.1 | 25.9 | 26.3 | 26.9 | 25.9 | 25.1 |
Semi-Detached | 30.76 | 30.3 | 30.7 | 32.3 | 31.6 | 30.6 | 30.4 | 29.0 | 31.2 | 31.6 | 31.3 | 30.5 | 29.6 |
Bungalow | 49.46 | 48.3 | 52.5 | 53.6 | 51.3 | 47.5 | 48.3 | 44.9 | 49.2 | 50.1 | 50.5 | 48.9 | 48.4 |
To summarise,
- For HDB 1-room, the average monthly water consumption is at 8.55 cubic metres
- For HDB 2-room, the average monthly water consumption is at 11.25 cubic metres
- For HDB 3-room, the average monthly water consumption is at 12.70 cubic metres
- For HDB 4-room, the average monthly water consumption is at 16.18 cubic metres
- For HDB 5-room, the average monthly water consumption is at 17.24 cubic metres
- For HDB Executive, the average monthly water consumption is at 19.38 cubic metres
- For an apartment, the average monthly water consumption is at 13.57 cubic metres
- For Terrace, the water consumption per month is at 25.90 cubic metres
- For Semi-Detached, the average monthly water consumption is at 30.76 cubic metres
- Lastly, for a bungalow, the average monthly water consumption is the highest at 49.46 cubic metres
How will the water price hike affect Singaporeans?
Taking GST Voucher – U-Save out of the picture, this is how the price hike will affect Singaporeans.
Household Types | Average | Monthly Water Bill before 1 July 2017 | Monthly Water Bill from 1 July 2017 | Monthly Water Bill from 1 July 2018 |
---|---|---|---|---|
HDB 1-Room | 8.55 | 17.96 | 20.43 | 23.43 |
HDB 2-Room | 11.25 | 23.63 | 26.89 | 30.83 |
HDB 3-Room | 12.70 | 26.67 | 30.35 | 34.80 |
HDB 4-Room | 16.18 | 33.98 | 38.67 | 44.33 |
HDB 5-Room | 17.24 | 36.20 | 41.20 | 47.24 |
HDB Executive | 19.38 | 40.70 | 46.32 | 53.10 |
Apartment | 13.57 | 28.50 | 32.43 | 37.18 |
Terrace | 25.90 | 54.39 | 61.90 | 70.97 |
Semi-Detached | 30.76 | 64.60 | 73.52 | 84.28 |
Bungalow | 49.46 | 108.69 | 125.97 | 144.51 |
These are the difference in monthly water bills for both phases of water price hike.
With the percentage difference in Monthly water bills for Singaporeans (July 2017 vs before July 2017) being:
Household Types | Average | Monthly Water Bill before 1 July 2017 | Monthly Water Bill from 1 July 2017 | Percentage Difference |
---|---|---|---|---|
HDB 1-Room | 8.55 | 17.96 | 20.43 | 13.81% |
HDB 2-Room | 11.25 | 23.63 | 26.89 | |
HDB 3-Room | 12.70 | 26.67 | 30.35 | |
HDB 4-Room | 16.18 | 33.98 | 38.67 | |
HDB 5-Room | 17.24 | 36.20 | 41.20 | |
HDB Executive | 19.38 | 40.70 | 46.32 | |
Apartment | 13.57 | 28.50 | 32.43 | |
Terrace | 25.90 | 54.39 | 61.90 | |
Semi-Detached | 30.76 | 64.60 | 73.52 | |
Bungalow | 49.46 | 108.69 | 125.97 | 15.89% |
The percentage difference in monthly water bills for Singaporeans (July 2018 vs before July 2017) will be:
Household Types | Average | Monthly Water Bill before 1 July 2017 | Monthly Water Bill from 1 July 2018 | Percentage Difference |
---|---|---|---|---|
HDB 1-Room | 8.55 | 17.96 | 23.43 | 30.48% |
HDB 2-Room | 11.25 | 23.63 | 30.83 | |
HDB 3-Room | 12.70 | 26.67 | 34.80 | |
HDB 4-Room | 16.18 | 33.98 | 44.33 | |
HDB 5-Room | 17.24 | 36.20 | 47.24 | |
HDB Executive | 19.38 | 40.70 | 53.10 | |
Apartment | 13.57 | 28.50 | 37.18 | |
Terrace | 25.90 | 54.39 | 70.97 | |
Semi-Detached | 30.76 | 64.60 | 84.28 | |
Bungalow | 49.46 | 108.69 | 144.51 | 32.95% |
Price of electricity in Singapore over the years
Singaporeans are subjected to Electricity Tariff, which is regulated by the Energy Market Authority (EMA).
This Electricity Tariff is updated every quarter and is made up of 4 components.
- Market Administration and Power System Operation Fee (Reviewed annually)
- Market Support Services Fee (Reviewed annually)
- Network Cost (Reviewed annually)
- Energy Cost (Reviewed quarterly)
Average electricity consumption for Singapore households
The amount an average Singaporean consumes according to property type:
Property Type | Average Electricity Consumption (kWh) as of Jul 2019 |
---|---|
HDB 1-Room | 128 |
HDB 2-Room | 174 |
HDB 3-Room | 259 |
HDB 4-Room | 353 |
HDB 5-Room | 411 |
HDB Executive | 501 |
Apartment | 515 |
Terrace | 790 |
Semi-Detached | 1057 |
Bungalow | 2254 |
Price of electricity over the past 10 years
To simplify things a little, we look at the changes in the price of electricity using the yearly average derived from the quarterly electricity tariffs.
Year | Annual Electricity Tariffs (Low Tension Tariffs) (cents/ kWh) |
||||
---|---|---|---|---|---|
Q1 | Q2 | Q3 | Q4 | Annual | |
2008 | 22.6 | 23.9 | 25.1 | 30.5 | 25.5 |
2009 | 22.9 | 18.0 | 19.3 | 21.7 | 20.5 |
2010 | 22.9 | 23.6 | 24.1 | 23.3 | 23.5 |
2011 | 24.1 | 25.6 | 27.3 | 27.0 | 26.0 |
2012 | 27.6 | 28.8 | 28.1 | 27.3 | 27.9 |
2013 | 26.3 | 26.7 | 26.0 | 26.0 | 26.3 |
2014 | 25.7 | 25.7 | 25.7 | 25.3 | 25.6 |
2015 | 23.3 | 20.9 | 22.4 | 20.4 | 21.7 |
2016 | 19.5 | 17.7 | 19.3 | 19.1 | 18.9 |
2017 | 20.2 | 21.4 | 20.7 | 20.30 | 20.65 |
2018 | 21.6 | 22.2 | 23.7 | - |
How will the electricity tariff’s fluctuation affect Singaporeans?
Property Type | Total Electricity Bills over 10 years | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
---|---|---|---|---|---|---|---|---|---|---|---|
25.5 | 20.5 | 23.5 | 26.0 | 27.9 | 26.3 | 25.6 | 21.7 | 18.9 | 20.65 | ||
HDB 1-Room | $316.98 | $34.17 | $27.47 | $31.49 | $34.84 | $37.39 | $35.24 | $34.30 | $29.08 | $25.33 | $27.67 |
HDB 2-Room | $443.53 | $47.81 | $38.44 | $44.06 | $48.75 | $52.31 | $49.31 | $48.00 | $40.69 | $35.44 | $38.72 |
HDB 3-Room | $636.32 | $68.60 | $55.15 | $63.22 | $69.94 | $75.05 | $70.75 | $68.86 | $58.37 | $50.84 | $55.55 |
HDB 4-Room | $862.22 | $92.95 | $74.72 | $85.66 | $94.77 | $101.70 | $95.86 | $93.31 | $79.10 | $68.89 | $75.27 |
HDB 5-Room | $1,002.50 | $108.07 | $86.88 | $99.59 | $110.19 | $118.24 | $111.46 | $108.49 | $91.96 | $80.10 | $87.51 |
HDB Executive | $1,231.24 | $132.73 | $106.70 | $122.32 | $135.33 | $145.22 | $136.89 | $133.25 | $112.95 | $98.37 | $107.48 |
Apartment | $1,246.15 | $134.33 | $107.99 | $123.80 | $136.97 | $146.98 | $138.55 | $134.86 | $114.32 | $99.57 | $108.78 |
Terrace | $2,111.21 | $227.59 | $182.96 | $209.74 | $232.05 | $249.01 | $234.73 | $228.48 | $193.67 | $168.68 | $184.30 |
Semi-Detached | $2,804.30 | $302.30 | $243.03 | $278.59 | $308.23 | $330.75 | $311.79 | $303.49 | $257.25 | $224.06 | $244.81 |
Bungalow | $5,711.03 | $615.65 | $494.93 | $567.36 | $627.72 | $673.59 | $634.96 | $618.06 | $523.90 | $456.30 | $498.55 |
Over the course of 10 years, this is how much Singaporeans would have spent on their electricity bills:
- For HDB 1-room household, a total of $316.98 would be spent on electricity.
- For HDB 2-room household, a total of $443.53 would be spent on electricity.
- For HDB 3-room household, a total of $636.32 would be spent on electricity.
- For HDB 4-roomĀ household, a total of $862.22 would be spent on electricity.
- For HDB 5-room household, a total of $1,002.50 would be spent on electricity.
- For HDB ExecutiveĀ household, a total of $1,231.24 would be spent on electricity.
- For an apartmentĀ household, a total of $1,246.15 would be spent on electricity.
- For Terrace, that amount will be $2,111.21.
- For Semi-DetachedĀ household, a total of $2,804.30 would be spent on electricity.
- Lastly, for a bungalowĀ household, a total of $5,711.03 would be spent on electricity.
While electricity tariff might have gone up for this quarter to 23.7 cents/kWh, it is unfair to label it as an increase in the cost of inflation as it is generally lower than numerous quarters in the past.
I put my money in the bank, hoping to beat the changes in my utility bills
Due to the difference in nature for our water and electricity bill, we will state different assumptions for both to make this a more effective article.
We will also base interest on this:
Putting my money in the bank, hoping to beat the changes in my water bills
Before we move on, let’s state a few assumptions:
- Assuming someone predicted the water price hike 10 years ago and started saving for it.
- He saves an initial amount of $2.10 (the price of water per cubic metre before July 2017) in the year 2008
- There is no subsequent addition to the amount.
- Interest rate compounded per annum.
- U-Save is out of the picture
- His aim is to grow $2.10 to $2.74 by the year 2018
Will he be able to beat the price hike?
Financial Product | Interest Rate | Initial Amount | After 10 years |
---|---|---|---|
Deposits Accounts | 0.5% | $2.10 | $2.21 |
Savings Accounts | 1.5% | $2.44 | |
Singapore Savings Bond | 2.0% | $2.56 | |
Fixed Deposits | 2.5% | $2.69 | |
CPF Ordinary Account | 2.5% | $2.69 | |
CPF Special Account | 4.5% | $3.26 | |
STI ETF | 6.0% | $3.76 | |
Active Funds | 8.0% | $4.53 |
While CPF Special Account seems to be able to be the benchmark interest to do so, we know that it appears to be not very liquid. Hence, let’s move on to other options such as STI ETF and Active funds.
Putting my money in the bank, hoping to beat the changes in my electricity bills
Assumptions in a crazy world of fantasy:
- Assuming in the next 10 years cycle, the total electricity bill will amount to the same.
- Singaporeans are allowed to pay for electricity bills as a whole once every 10 years
Here’s how much one needs to start saving if he stays in a 3-room HDB:
Financial Product | Interest Rate | Initial Amount | After 10 years |
---|---|---|---|
Deposits Accounts | 0.5% | $605.36 | $636.32 |
Savings Accounts | 1.5% | $548.30 | |
Singapore Savings Bond | 2.0% | $522.00 | |
Fixed Deposits | 2.5% | $497.09 | |
CPF Ordinary Account | 2.5% | $497.09 | |
CPF Special Account | 4.5% | $409.74 | |
STI ETF | 6.0% | $355.32 | |
Active Funds | 8.0% | $294.74 |
Here’s how much one needs to start saving if he stays in a Bungalow:
Financial Product | Interest Rate | Initial Amount | After 10 years |
---|---|---|---|
Deposits Accounts | 0.5% | $5,490.26 | $5,771.03 |
Savings Accounts | 1.5% | $4,972.71 | |
Singapore Savings Bond | 2.0% | $4,734.25 | |
Fixed Deposits | 2.5% | $4,508.32 | |
CPF Ordinary Account | 2.5% | $4,508.32 | |
CPF Special Account | 4.5% | $3,716.13 | |
STI ETF | 6.0% | $3,222.51 | |
Active Funds | 8.0% | $2,673.10 |
Further Reading: GST Voucher – U-Save
In order to help cushion the price increase in our utility bills, U-Save vouchers are given to eligible households.
Each flat will receive only 1 GST Voucher – U-Save benefit.
source: www.gstvoucher.gov.sg
Eligible households will also receive an additional $20 per year from the year 2019 to the year 2021, paid out quarterly in tranches.
A National Day type of conclusion
Being a physically tiny country with limited natural resources, at times the surge in utility cost is inevitable.
While it is easy to complain, a possibly better solution will be to be forward-looking and try to prepare for any of such possible hike.
What are some of your biggest worry? Do share with us on theĀ Seedly Community platformĀ where our Community will gather to help you in your situation.
(Donāt worry, you can choose to remain anonymous too!)
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