Govt to put a cap on revised water tariff, says Nik Nazmi

 

Nik Nazmi Nik Ahmad said some states were still using old tariffs that had not been reviewed for more than 20 years.

KUALA LUMPUR: The government will set a maximum rate for the revision of the water tariff, says natural resources, environment and climate change minister Nik Nazmi Nik Ahmad.

He said there had been requests by two to three states to increase the water tariff for domestic users for financial viability.

“So we will look at the tariff-setting mechanism and then the National Water Services Commission (SPAN) will set the maximum rate,” he said at an event here today.

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Nik Nazmi said it was up to the water operators in each state to determine the rate they want to set, but it had to be below the maximum rate.

Yesterday, Nik Nazmi announced that the ministry was considering a review of water tariffs.

He said the federal government was aware that the financial sustainability of water companies played a crucial role in the quality of service delivery.

He also said the ministry was aware that some states were still using old tariffs that had not been reviewed for more than 20 years.

The previous administration had agreed to maintain the water tariff for the domestic category (residential premises) in Peninsular Malaysia and Labuan in view of the rising cost of living.

A Cabinet meeting on June 22 had agreed to adjust the water supply tariffs for non-domestic categories and special categories in Peninsular Malaysia and Labuan, effective Aug 1, involving an average increase of 25 sen per cubic metre.

It followed the Cabinet’s agreement with the use of the tariff-setting mechanism to reorganise the management of the country’s water supply.

The mechanism, developed by SPAN in 2016, was described as a systematic, fair and transparent water tariff mechanism aimed at guiding the national water service industry to achieve long-term sustainability. - FMT