Indah Water: Hiked sewerage rates still among lowest globally

 

The adjustment of sewerage service tariff rates in Peninsular Malaysia and Labuan is needed to cover the increase in the operating and maintenance costs of the public sewage system, explained Indah Water Konsortium (IWK) Sdn Bhd. 

In a statement today, IWK lamented the RM2 increase is insufficient to fully cover its operating cost as the sewerage tariff rate has not been revised for 28 years. 

IWK also stressed that the new rates are still among the lowest in the world despite the adjustment.

“We would like to clarify that the monthly sewerage fees, which have been increased to RM10 from RM8 per month, have been approved by the government. It was published under the Water Services Industry Regulations (Sewerage Service Fees) in September 2022.

“The increase of sewerage fees is needed to cover the rising costs in operation and maintenance that have significantly increased, as well as the receiving of assets from year to year,” said IWK. 

IWK said the lower-income group will not be affected as they will be given an RM2 rebate from the company. 

“The adjustment does not involve customers from affordable houses, villages, new villages, and estates. In fact, the bottom 40 (B40) who registered under the National Poverty Data Bank System (eKasih) may receive a rebate of RM2 from the adjustment.

“The implementation aims to efficiently run the operation and maintenance of the public sewer system, secure water resources, protect public health and the environment, and prevent river pollution,” the consortium said.

IWK added that it must currently rely on government subsidies to provide quality and consistent service to the public.

Some netizens who received the sewerage bill earlier this year were unhappy that they were charged 25 percent more for their monthly sewerage service charge.

According to a Bernama report on Sept 27 last year, the then Environment and Water Ministry announced the new rates for sewerage services and emptying septic tanks.

The ministry said the cabinet approved the new rates in April last year.

Although the announcement only described new rates for the domestic tariff starting either Oct 1 last year or Jan 1 this year, the federal government gazette showed rates will be increased again soon.

Beginning Jan 1, 2024, domestic premises that do not fall under the “low cost” or “village dwelling” category will be charged RM12.

This fee will then increase to RM15 on Jan 1, 2026. - Mkini