Rayer wants cost-cutting measures, not drastic water rate hike

Jelutong MP RSN Rayer has hit out at the Penang Water Supply Corporation over what he called a sudden drastic increase in water rates.

He pointed to a statement by PBAPP CEO K Pathmanathan, saying it was trying to justify the sudden drastic increase in water rates in Penang by citing an apparent need to spend billions of ringgit for additional infrastructure.

“Does this really justify PBAPP’s sudden and drastic increase in water rates? I beg to differ.

“Aren’t there any other cost-cutting measures the PBAPP can implement? If the PBAPP needs billions of ringgit for additional infrastructure then PBAPP should undertake other internal cost-cutting measures first,” he said in a statement today.

The new rates are 62 sen for the first 20 cubic metres (up 182 percent from 22 sen), RM1.17 for the second band above 20 cubic metres to 35 cubic metres (up 154 percent from 46 sen) and RM2.07 for the third band of more than 35 cubic metres.

Former Penang chief minister Lim Guan Eng has already urged the state government to consider a 20 sen rebate as a buffer against the water tariff hike, saying it could still apply for a refund from the National Water Services Commission.

Pathmanathan in his statement said the PBAPP was working to address the following key water issues for Penang:

1. Highest water consumption in history: 877 million litres per day (MLD) in 2023 and 927 MLD in February 2024;

2. Projected water demand of 1,532 MLD by 2030;

3. Climate change, affecting rainfall in the water catchment areas of the Air Itam Dam and Teluk Bahang Dam; and

4. Risks of more Sungai Muda mishaps (as per 2022 and 2023).

“In short, PBAPP must expand and improve Penang’s water supply infrastructure to meet present and future water demand, as well as reduce water risks.

“At the same time, the overall costs of supplying water in Penang had increased by 30 percent since 2015 when water rates were last reviewed,” he said.

Rayer called on the PBAPP to start by reducing its internal overheads rather than imposing water rates that burden the people.

“Let me reiterate that the sudden and drastic increase in water rates has indeed posed serious financial implications for the B40 and M40 category of people of Penang,” he added,- Mkini