October 11, 2023

About 930,000 Singaporean households living in Housing Development Board (HDB) flats received the fourth installment of their annual Utilities-Save (U-Save) rebate in October 2019. Depending on the HDB flat type, households are eligible for up to $100 worth of rebates to offset electricity, water, and gas costs to help lower their utility expenses.

In ‘Electrical appliances moderate households’ water demand response to heat’ (Nature Communications, 2018), Associate Professor Alberto Salvo (NUS Economics) investigates the electricity and water usage in households of different socioeconomic status when there is an increase in temperature. Water and electricity bills were studied from a random sample of households for 40 months between September 2012 and December 2015. Only HDB flats and condominium households were examined to focus on indoor water use. Additionally, income levels were estimated by proxy according to flat type.

Results showed that water and electricity demand respond differently to heat. As temperatures increase, water demand among lower-income households increases, while demand in higher-income households does not change. Conversely, there is a sharp increase in electricity usage among higher-income households when temperatures rise. As previous data revealed that only 14% of 1 to 2 room flats have air-conditioning installed compared to 99% in condominiums, A/P Salvo hypothesizes that water provided heat relief for households that do not have air conditioning. Cost-sensitive lower-income households may take additional baths with the increase in heat compared to higher income households who may take two showers daily regardless of the temperature.

The study informs policymakers in tropical, highly urbanized places with rising income levels to prepare future measures to cope with a rise in demand for water. For lower-income, water-stressed cities, an adoption of air-conditioning may help reduce water usage. Authorities can establish policies to incentivize more households to install air-conditioning. At the same time, it is also crucial to ensure the negative effects of increased electricity use, such as aerosols and greenhouse gas emissions, are regulated.

Read the full article here.