Ace of Bursa

Penang water tariffs to double from Feb 1, but still among the lowest

aceofbursa
Publish date: Thu, 18 Jan 2024, 09:00 AM

GEORGE TOWN: Water tariff rates for domestic users in Penang will double from Feb 1, chief minister Chow Kon Yeow announced today.

Accounts that use zero to 20 cubic metres a month will be charged 50 sen per cubic metre, compared with 22 sen now.

Meanwhile, those who use 20 to 35 cubic metres a month will be charged RM1.10 per cubic metre and those using more than 35 cubic metres will need to pay RM2 per cubic metre, compared with the current rate of 46 sen and 68 sen, respectively.

This follows the National Water Services Commission’s (SPAN) announcement that water tariffs for domestic users in the peninsula and Labuan will be raised by an average of 22 sen per cubic metre.


Penang is still enjoying among the lowest water tariffs in the country despite the new water tariff announced by the National Water Services Commission (SPAN).

Chief Minister Chow Kon Yeow said this was an opportune time for the increase after what the state went through during the scheduled water supply disruption from last week.

He said there was a need to implement new water infrastructure works to ensure Penang remains a water-resilient state.

"With the new water tariff, the Penang Water Supply Corporation (PBAPP) is expected to receive an additional RM86 million in revenue annually.

"Penang had postponed previous water tariff adjustments that was approved. The water tariff for the first band had not been adjusted since 1993.

"Even with the new water tariff, the rate in Penang is still among the lowest in the country," he told a joint press conference with state Infrastructure Committee chairman Zairil Khir Johari here today.

SPAN had said that the new water tariffs, which would see domestic users in the Peninsular and Labuan to pay an average of 22 sen more for every cubic metre beginning Feb 1, were still insufficient to cover the actual cost of providing water supply services.

It said based on its records in 2022, the actual cost of providing water supply services was RM1.75 per every cubic metre.

It added that the adjustment made to the water tariffs, which was made using the Tariff Setting Mechanism (TSM), was implemented based on the needs and at the request of the state governments.

 

Source: NST; Free Malaysia Today