GEORGE TOWN – An elected representative has asked the Penang Water Supply Corporation (PBAPP) to put on hold its proposed water tariff review in view of a greater need to contain the pandemic and restore the economy.
Kebun Bunga assemblyman Jason Ong Khan Lee said that while he respects PBAPP’s decision to move ahead with a public consultation on the proposed review, he hopes that any proposed increase in the billing can be done after the country has won the war against Covid-19.
“I think the average consumer is more worried about how Tenaga Nasional Bhd (TNB) charges them and not about our water billing, which is quite reasonable. Perhaps there is room for a hike, but it should wait until our main issue of Covid-19 is dealt with.”
Ong said everyone’s focus in the country now is on how to contain the pandemic effectively and rebuild their lives.
He was commenting on the proposed water tariff review, which was made public by PBAPP today.
The public consultation and feedback exercise on the proposal is from today until June 6.
According to PBAPP, the National Water Services Commission (SPAN) is also conducting public consultation for water tariff reviews in other states, including Kedah, Perak, Melaka, Negri Sembilan and Johor.
SPAN has conducted similar ones for Kelantan, Terengganu, Pahang, Selangor, and Labuan over the past two years.
In a statement, PBAPP chief executive Datuk Jaseni Maidinsa said one of the reasons for the review is the projection that there will be increased demand. He said there is a need to raise funding for capital expenditure to ensure the state has adequate water resources and an uninterrupted supply line.
“Penang’s average water consumption was 845 million litres per day (MLD) in 2020 and the water demand is projected to reach 1,696 MLD by 2040 and 1,884 MLD in 2050.”
He said Penang has also become over-dependent on Sg Muda in Kedah as a raw water resource, from which it extracts 80% of its raw water.
“PBAPP must tap a second major raw water resource for Penang towards 2050, such as Sg Perak,” he said.
Sg Perak supply plan
Negotiations with neighbouring Perak state government has been bogged down due to Perak’s insistence on charging higher rates to export raw water.
Jaseni said PBAPP needs sufficient funds to construct the proposed Sg Kerian Water Treatment Plant to treat raw water from Sg Perak before the proposed Sg Perak Raw Water Transfer Scheme comes online.
He said climate change and abnormally low rainfall in water catchment areas have exacerbated Penang’s raw water risks.
Penang needs to implement its Penang Water Supply Initiative 2050 contingency projects to mitigate raw water risks.
Finally, he stressed that Penang’s current domestic water tariff at 32 sen per 1,000 litres for the first 35,000 litres per month is the lowest in the country.
“These low existing tariffs make it impossible for PBAPP to raise sufficient funds for its proposed capex,” he said.
He said Penang’s per capita domestic consumption is 299 litres per capita per day (LCD) as compared to the national average of 240 LCD.
He attributed this higher consumption to its low tariffs and believes that reviewing domestic tariffs will motivate more consumers to save water and reduce consumption. – The Vibes, May 24, 2021
