Dear Prime Minister Lawrence Wong, Deputy Prime Minister Gan Kim Yong, Minister Desmond Lee, and Senior Minister Dr. Amy Khor,

I am a future resident of Tengah town. I am writing on behalf of the affected CCS users to formally request government support in addressing the unfair contract cancellation terms imposed by SP Home Cooling and to highlight ongoing issues affecting numerous residents. I hope that this petition helps convey our pain to you.

Good intentions of residents
When residents heard about the CCS during the promotion of the new Tengah town, we were excited and eager to contribute to a more sustainable Singapore. With SP and Daikin's established reputation, we trusted them to provide us with energy-efficient air conditioning, with the guaranteed "up to 30% savings" as a bonus.

The CCS issues persist till today (As of April 2025)
As the first batch of residents collected their keys, many faced issues like leaking and condensation, which disrupted their renovation plans. Some had to delay their move-in, and some had their renovation work destroyed, requiring them to spend extra money to patch it up. Also, they had to take annual leave to stay home for SP and Daikin to rectify the issues. SP claimed that these are teething issues due to COVID-19. While we initially sympathised, more than a year has passed since the first batch moved in, and over two years have elapsed since the pandemic's peak. Yet, residents continue to report unresolved issues, with some stating that even after five or more repair attempts, the problems persist.

Unfair Contract Terms for Cancellation Pre-Installation
We also wish to address the situation faced by residents who cancelled before installation. Despite no work being carried out, SP Home Cooling imposes a 35% penalty fee. While this has been reduced to 17.5% as a “goodwill” gesture, the cancellation terms remain heavily skewed in favour of SP and are fundamentally unfair. Such terms may suggest a lack of accountability, as SP could have benefited financially regardless of whether the CCS system meets promised standards or not. This creates little incentive for SP to ensure product quality or customer satisfaction.

To illustrate, imagine pre-ordering a pair of shoes online. If you discover overwhelmingly negative reviews before delivery, would it be fair to be charged 35% of the cost if you cancel the order? Such terms discourage accountability and penalise consumers for decisions influenced by SP's inability to deliver as promised.

Although reviews on CCS are based on feedback from resident discussions in Telegram groups, it is no different from reading reviews before making a purchasing decision. This analogy highlights the flawed nature of these cancellation terms.

Income loss for users who have issues with CCS is potentially more than the 50% cancellation fee
Residents who proceeded with installation and faced persistent issues have suffered even greater losses. Many had to spend their annual leave to stay home, disrupt freelance work, or incur additional repair costs, leading to significant financial strain and mental stress.
Waiving the 50% cancellation penalty for these residents is a fair and reasonable solution for the following reasons:

1. Avoiding legal disputes: SP can save on potential legal costs and reputational damage.
2. Financial prudence: SP risks losing legal cases, which could result in compensation payouts far exceeding the penalty fees.
3. Restoring public trust: A fair resolution demonstrates accountability and rebuilds confidence in SP Home Cooling’s services.

 

Misrepresentation of the CCS system
Residents were assured that the CCS was a “proven concept”, only to discover that it differs significantly from the well-established District Cooling System used in commercial settings. This distinction, coupled with SP’s inability to meet promised standards, leaves many feeling misled.

Furthermore, the voices on the ground echoed that instead of cost-savings, CCS bills are allegedly more expensive than conventional aircon, inclusive of the maintenance cost.

 

 

 

 

 

 

 

Users discussing the expensive CCS bills on Telegram

 

Impact on family building
Due to the leaking issues and financial impact the faulty system has on some households, residents intending to start a family had their plans delayed, as the defective system is unsafe for newborns. There are also concerns that the water is dirty, as leaks are reported to be dirty brown. While there is no official evidence to support how this affects residents' health, there are concerns that the leaks will negatively impact pregnant mothers. The constant leaking caused households to spend extra money on repairing the damage caused by the faulty system, leading to a lack of funds to start a family despite having enough money before the CCS issues arose.

Some residents who had dealt with the CCS issues for more than 2 years since its launch felt dejected that they may never start a family because the delays caused by CCS have led to them surpassing their biological clock and financial capabilities to begin their family life. The flawed CCS is causing a serious negative impact and pain to the users.

 

Thorough testing should be done before future installations
Lastly, SP Home Cooling may have rushed the project, resulting in the situation today. We hope that they will be able to test the system thoroughly, making it close to 0 issues before launching it on such a large scale. If proper testing had been done, the CCS situation would not have been what it is today. Furthermore, their potential lack of testing has gone against the basic principles of what CCS stood for - a sustainable Singapore. With the constant issues, more materials were needed to patch up the areas of defect and repair. It has generated more waste instead of conserving resources. Thus, I implore SP to conduct proper testing first before rolling it out to the masses.

 

Impact on resident trust
The good intentions of residents to adopt CCS have been met with penalties and frustrations. If SP Home Cooling continues to mishandle this situation, it risks eroding public trust in government-supported initiatives, potentially discouraging participation in future sustainability projects. Residents should not be punished for the communication breakdown between the organisations involved.

 

Conclusion
Countless CCS users have gone to the MP Meet the People session for help, but many received limited help as the government boards stated that the contract is private and they can't help. This was not the impression we were given, as we believe that CCS is a government-backed project. We believe we have a strong government that can intervene when such unfair terms and scenarios surface so that Singapore's corporate bodies will remain fair to the consumers.

Besides, Keppel has been awarded the CCS contract, and they pitched that the parts used and layout will be different from SP, which will have significant improvements. Should the consumers be penalised for SP Home Cooling's potentially inefficient design?

Below is evidence to support this appeal. The identities of affected residents have been anonymised for privacy, except for information that can be found publicly.

 

UPDATED ON 24 APRIL - Recent cases, inefficiency, and alleged lies (including from newer estates)

 

25 April - CCS servicing slots have waiting time longer than 4 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leaks in Garden Court on 28 March

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

User refused compensation over damaged carpentry by CCS, SP insisted it's not damaged even with photo evidence.

 

 

 

 

 

 

Waterfall issues persist in 2025, leading to more removal of the system

 

 

 

 

 

 

 

Recent new estates in Tengah facing leaking in risers, affecting non-CCS users as well 

 

 

 

 

 

 

Unresolved case since mid-2024 till now. Source: Tengah CCS damages 2025

 

We hope you will empathise with the plight of CCS users and advocate for fairer contract terms and more effective solutions from SP Home Cooling. We ask for your support in enforcing that SP Home Cooling to:

1. Remove cancellation terms for users who cancelled pre-installation
2. Refund the unfair cancellation fees already paid by users.
3. Stop forcing users to engage SP Home Cooling's interior designer for compensation. Users should have the right to engage their interior designer and be compensated.
4. Compensate users for the damages due to CCS
5. Keep bills true to being lower than conventional aircon for existing users - we request transparent statistics to prove the statement to be true
6. Waive cancellation fee for users who faced issues and wish to cancel within 1 year of usage.