Malaysia

Penang water tariff hike sudden and perceived to be punitive, says Guan Eng

Penang CM says the rate hike is necessary for PBAPP to implement numerous capital infrastructure projects under its water contingency masterplan.

Updated 2 years ago · Published on 30 May 2024 6:40PM

Penang water tariff hike sudden and perceived to be punitive, says Guan Eng

by Ian McIntyre

THE debate over the water tariff hike which has unsettled many people including some backbenchers here spilled over to the state legislative sitting today.

Chief Minister Chow Kon Yeow’s (Pakatan Harapan - Padang Kota) predecessor Lim Guan Eng (Pakatan Harapan - Air Putih) said rebates should be given to consumers, claiming that the tariff was a burden, particularly on the low middle income class (B40).

Lim also said that the hike was sudden and perceived to be punitive.

It is seen as a drastic measure by the Penang Water Services Corporation (PBAPP), coming at a time where there is widespread concern over rising living costs, said Lim.

His remark drew several DAP backbenchers to also stand up to support his call.

Chow, who looked unsettled by the outburst from his fellow DAP backbenchers, retorted that the water hike is justified as it was also part of the recommendations made by the National Water Services Commission (SPAN).

"If we offer rebates now, next year when the rates surge back up, the consumers may also dislike it. We are trying our best to mitigate the costs," said Chow.

Water tariffs have gone up nationwide after SPAN's approval for an across the board increment to meet the escalating operational costs and to educate while encouraging consumers to conserve water in light of the climate change.

In Penang, it has gone up more than 100 percent, drawing widespread complaints because while the rates went up, the services remain shoddy, particularly over the unkind spate of water cuts in the past year.

It was reported earlier that Chow had urged consumers to be mindful that despite more than a 100% hike in tariffs this year, the rates remain the second lowest in the country.

Chow said the rate hike is necessary for PBAPP to implement numerous capital infrastructure projects under its water contingency masterplan.

It is to raise the state’s water resilience against climate change.

“This bi-monthly system was implemented in the 1990s and actually, this bi-monthly billing helps to lower the consumer’s bill compared to monthly billing,” he was quoted as saying.

Chow said bi-monthly billing leads to savings from a few ringgit to up to RM10 and RM15.

He said divided by the number of people in a household, the new rate works out to only 20 sen per day for each person.

“I know people won’t like this explanation; it is a fact that even if the tariff rate has increased, the cost is only two cents per day per individual on average,” he said.

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

Some consumers, even PBAPP staffers have lamented that the rate has reached to RM100 for every two months for them and the belief is that it is driven more by the consumption rate, which has surged due to the present heatwave. - May 30, 2024.

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