Domestic water consumers in Penang will have to pay double beginning Feb 1 as the state water authority increases its tariffs.
According to the state government's official news site Buletin Mutiara, the new tariffs will see consumers charged RM0.50 for every cubic metre for the first 20 cubic metres, compared to the current rate of RM0.22.
Those who use more than 20 cubic metres a month will also see an increase in tariff rate, with the Penang Water Supply Corporation (PBAPP) charging RM1.10 for every cubic metre for the next 15 cubic metres; and RM2 for every cubic metre beyond 35 cubic metres a month.
These were stark increases compared to current charges, where consumers have to pay RM0.46 for usage of between 20 and 40 cubic metres a month; and RM1.30 for usage of beyond 40 cubic metres.
Consumers who are from the hardcore poor group (RM1,035 monthly income and below) and B40 households with fewer than eight members, however, are exempted from paying for water under two rebate schemes by the Penang government.
Buletin Mutiara said PBAPP had to increase its rates as the National Water Services Commission (Span) adjusted the water supply service rates for the domestic category for the peninsula and Labuan.
However, Penang executive councillor Zairil Khir Johari - who is in charge of infrastructure - stressed that the domestic water tariffs in the state remained among the lowest in Malaysia despite the adjustments.
"For your information, the lowest ‘band’ rates in Penang have not been reviewed since 1993, which was 31 years ago.
"Even with this adjustment, PBAPP will still need to bear subsidies as the water supply rates are still lower than the production and operation costs," Zairil reportedly told a press conference.
Despite the adjustment, he said 77 percent of domestic water consumers in Penang would still be paying tariffs less than RM10.85 per month.
Penang Chief Minister Chow Kon Yeow, meanwhile, said PBAPP is expected to gain RM86 million a year with the tariff adjustment.
"However, PBAPP still has to bear an estimated subsidy of RM78 million for the same period. In fact, this subsidy could have been spent on necessary water infrastructure projects, and to replace old existing water infrastructure.
"Penangites have been enjoying a huge subsidy from PBAPP for many years.
"Penang water consumers cannot expect the old water tariff to remain the same forever as funds are needed to replace, maintain and provide for the state’s water infrastructure," he was quoted as saying by Buletin Mutiara.
Perak yet to decide
Earlier today, Span announced that water tariff adjustment for domestic users in the peninsula and Labuan will take effect on Feb 1, involving an average increase of 22 sen per cubic metre.
It said the domestic water tariff adjustment can no longer be delayed so as not to affect the sustainability of the water service industry in the long term, hence impacting the quality of water supply services enjoyed by the people.
In Negeri Sembilan, the state government is taking a similar move as Penang, where it is increasing the state water tariffs by close to 30 percent.
According to Utusan Malaysia, Menteri Besar Aminuddin Harun has announced new water rates at 71 sen for the first 20 cubic metres, an increase of 29 percent from the current charge of 55 sen.
For usage of between 20 and 35 cubic metres, consumers in the state will have to pay a rate of RM1.09, an increase from 85 sen (28 percent increase); and RM1.40 for usage of beyond 35 cubic metres.
Meanwhile, the Sabah government will maintain its water tariffs despite Span’s adjustment announcement.
State Deputy Chief Minister III Shahelmey Yahya reportedly said that they have no plan to increase the water rate.
"Sabah doesn't plan to increase our water tariffs for now," he was quoted as saying by Berita Harian.
According to the Malay daily, Sabah domestic consumers are paying RM0.30 for every cubic metre for the first 10 cubic metres, while those who use over 60 cubic metres a month are charged RM1.30 for each cubic metre.
On the other hand, the Perak government said they have yet to decide whether to increase water tariffs.
Menteri Besar Saarani Mohamad reportedly said the Perak Water Board needs to carry out a study on the matter first. - Mkini
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