Putrajaya has final say on tariffs, says Penang water company

Refuting a claim from caretaker prime minister Najib Abdul Razak, the Penang Water Supply Corporation (PBAPP) said today that the authority to impose and review water tariffs in the state lies with the federal government.

PBAPP CEO Jaseni Maidinsa said federal laws require the state-linked water company to seek approval from Putrajaya before implementing any reviews on water tariffs in Penang.

"Penang water tariffs were reviewed and implemented with the approval of the federal government in 2015, in accordance with federal laws, such as the Water Services Industry Act 2006 and National Water Commission Act 2006," said Jaseni in a statement today.

On Friday, Najib repeated his claim that water tariffs in Penang have been increased several times since Pakatan Harapan took over the state government in 2008.

Jaseni pointed out, however, that there has only been one review in 2015 for the average tariff for the first 35,000 litres per month.

Based on the Malaysia Water Industry Guide for 2017, Penang's water tariff – 0.32 sen – for the first 35,000 litres of water per month is the lowest in Malaysia compared to Johor (1.31 cents), Malacca (0.75), Perak (0.71), Kedah (0.67), while the national average is 0.69 sen.

The tariff was reviewed from 0.32 to 0.33 cents for every 1,000 litres, Jaseni noted.

"In 2010, the water conservation surcharge (WCS) was introduced, but only trade tariffs were reviewed," Jaseni said.

"In 2013, the WCS was reviewed to reduce water wastage.

"As much as 77 percent of Penang's domestic water consumers did not pay the WCS in 2017, because their water consumption did not exceed 35,000 litres per month," he said.

As Jaseni explained, households with bi-monthly bills of less than RM22.60 are not required to pay WCS because they would be part of the 77 percent whose water usage does not exceed 35,000 litres a month.

These households, he added, numbered 518,001 in 2017. The maximum water bill for those in this category was only RM11.30 per month.

"Punishing the 23 percent who use water excessively is to ensure Penang has sufficient water supply for the next 10 years," Jaseni said. - Mkini