KUALA LUMPUR: The new water tariffs will not be implemented in the near future, according to Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad. 

The government was seeking to introduce the new tariffs as early as next year, Nik Nazmi added.

He said the non-imminent implementation was due to the mechanism involved in determining the tariffs that the ministry had yet to introduce. 

Nik Nazmi said the planning had been in place for a while.

"We are looking at this matter closely as any new changes with the water tariffs will eventually impact the consumers, and we do not want them to be a victim of the new implementation.

"It will not come soon. The same goes to electricity tariff. It will go through Pangkalan Data Utama (PADU), which is expected to be ready towards the end of the year.

"Therefore if we were to conduct any tariff revision relating to PADU, it can only be done in the next cycle... sometime next year. 

"It will take some time for us to look into this," he said at a press conference after launching Malakoff Corporation Bhd's  rebranding today. 

When asked about one tariff for all, Nik Nazmi clarified that it would not be the case for water tariffs as the legislation for it was different than other components.

He said the National Water Services Commission would be the entity that decided how much the water tariff can increase.

"Last year, the previous government allowed the increase for non-domestic water usage, so the increment in the water tariff has occurred. 

"Right now, we have gotten requests from a few states to increase the water tariffs for domestic usage to ensure financial viability. 

"With that, we will look into the tariff setting mechanism to make sure the maximum tariff that can be set, of which is at the discretion of the water operator in each state within the maximum rate that has been decided," he added. 

Nik Nazmi's latest statements followed Monday's announcement by him that the ministry was considering reviewing the water tariffs.

He said the government acknowledged the financial sustainability for water operators that were essential in providing quality water supply service and delivery. 

"We are aware that some states are still using old tariffs that have never been reviewed for over 20 years and this matter is currently under the ministry's action.

"We will also ensure that any tariff increase will not burden the less fortunate," he added.

https://www.nst.com.my/business/2023/05/915306/new-water-tariffs-not-happening-near-future-says-nik-nazmi