Late last month, the government had passed the water tariff rate increment of an average 25 cents per cu m effective 1 August 2022. However, this is only for the non-domestic – meaning residential properties are excluded from the tariff hike.

As a result, it got me thinking could this be the light at the end of the tunnel?

If we cross check Ranhill’s past data from their annual report (a very informative annual report), the average consumption ranges around 40 mil meter³ in Johor.

At the same time, according to SPAN, non-domestic water consumption is at 38% (rounding up to 40% for simplicity’s sake) in Johor.

As a result, the potential annual increment estimates as such

Estimated annual non-domestic consumption = 202,936,000 m³

Average tariff increase = RM0.25/m³

Rough estimate increase in revenue = RM 50.7 million

PAT (Assuming all costs remain the same with 24% tax) = RM38.6 million

As you can see for the past financial years, a potential bump of RM38 million in earnings (by doing the same thing) could mean a lot for the company.

Not to mention, the 25 cents increment is only applicable to non-domestic at the moment. Assuming after pilihan raya, I suspect the domestic water tariff would slowly increase in tandem with non-domestic.