Ccs Woes Spur Tengah Residents Seek Legal Recourse Against Sp Group

When the Tengah eco-town estate was first introduced more than six years ago, it was marketed as a “forest town” with green, sustainable, and intelligent features, including the introduction of the Central Cooling System (CCS), the first of its kind in a public housing development. The initial promotional material for the CCS promoted the system as environmentally friendly and efficient, using centralized condensers to transport chilled water as the main coolant. Cost savings of up to 30% were advertised, compared to conventional air conditioning systems.

However, some residents who have moved into Tengah have experienced teething problems with the implementation of the CCS, leading them to seek legal action against SP Group, the company responsible for designing and implementing the system across the estate. A Telegram chat group, “Tengah CCS Issues,” conducted a poll of its 3,000 members, with 500 respondents indicating that 21 (4.2%) have filed cases with the Small Claims Tribunal (SCT), while 92 (18.4%) have expressed intentions to do so. Out of those who claimed to have opened cases, four mentioned success, three were unsuccessful, and the rest are ongoing.

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Residents have shared their reasons for pursuing legal action, including a lack of confidence that SP Group will fulfill its initial promises for the CCS. Thus, residents are looking to cancel their contracts with minimal financial losses. As of July 22, the MyTengah.sg website still cites the outdated cost-saving estimates from November 2023.

Some residents have already successfully dismissed SP Group’s claim of damages incurred from customers canceling their contracts. For instance, a resident known as Maan, who works as a construction project manager, filed a claim against SP with the SCT. In response, SP filed a counterclaim, but the SCT dismissed it since SP failed to produce evidence of the damages incurred. Currently, residents who cancel their CCS contract before the installation of fan coil units, piping, and cabling will incur a penalty equal to 17.5% of the total installation charge, which increases to 50% if canceled after installation. Contracts canceled during the 30-day cooling-off period will not incur any charges.

Amidst the rising concerns, some residents have decided not to pay the cancellation fee and wait for SP to file an SCT claim against them. Residents believe that the SCT will interpret the payment of the cancellation fee as a settlement and dismiss the case. On the other hand, SP Group claims to have resolved 88% of reported issues and remains committed to delivering a reliable, energy-efficient, and cost-effective CCS. However, some residents have reported faults with the system, such as water leakage and condensation. Nevertheless, tenants can report defects to the Building Service Centre within the estate for rectification works. While some cases of CCS faults may require rectification works after renovation, these occurrences are relatively rare. Other preventative measures include testing the CCS before renovation works to identify and fix any faults beforehand.

Designer Russell Pang, who has renovated five HDB flats in Tengah, states that three of those units experienced issues with leakage and condensation before renovation works began. Nevertheless, technicians from SP responded within two to three weeks at no additional cost. Based on his experience, Pang believes that the CCS is a brilliant idea with some teething issues that can be ironed out. Furthermore, he advises his clients to avoid hiding or covering the coolant pipe’s trunking to better detect any future faults.


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