PENANG has become the first state to confirm that it will increase the treated water tariff rate for domestic consumers following a major policy announcement by the National Water Services Commission (Span) this morning.
The state has decided to implement a hike to be enforced next month, but stressed that it would only be marginal.
This is the first increase in water rate for Penangites since 1993. Some 600,000 households will be affected.
Chief Minister Chow Kon Yeow said that the new rate would be based on the premise that the more water used the steeper the consumer has to pay, while less water consumed would result in a cheaper tariff.
Chow told a press conference that the minimum charge would now be RM6 per household compared to the low rate of RM2.50 before the hike.
It is still among the lowest rates in the country, he stressed, allaying fears that the rise would cause prices of food and drinks to soar.
Earlier, Span announced the implementation of new water tariff adjustment under the Tariff Setting Mechanism (TSM) for domestic users in Peninsular Malaysia and Labuan, which is a federal territory. It will come into effect from February 1 onwards.
The adjustment involves an average increase of 22 sen per cubic meter, Span said.
Water supply operators in each state are advised to continue the existing initiative of providing targeted assistance to domestic consumers, such as giving rebates to the B40 group.
It explained that under the TSM, the tariff structure and its components will be standardised for states in the peninsula and Labuan. The tariffs are to be reviewed every three years to ensure consistency in payment determination. – The Vibes, January 17, 2024
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