GEORGE TOWN, Jan 17 — Penang will finally see a hike in water tariff rates after 31 years following the National Water Services Commission’s (SPAN) tariff adjustment announcement for domestic users in the peninsula and Labuan today.
Penang Chief Minister Chow Kon Yeow said the state had postponed previous tariff rate adjustments that were approved but it is time to increase the rates now.
“The rates for the first band was not adjusted since 1993 but even with the tariff rate adjustment, the rates in Penang are still the lowest in the country,” he said in a joint press conference with state exco Zairil Khir Johari at Komtar here today.
This morning, SPAN announced an increase of an average of 22 sen per cubic meter (cu m) in water tariff rates for domestic users in the peninsula and Labuan effective February 1.
It said the tariff adjustment was per the needs and requests of respective state governments.
However, those in the B40 group will not be affected by the tariff hike as there will be a Family Friendly Rebate scheme for B40 households of more than eight people and household income of lower than RM2,250, Chow said.
He said those who qualify for the Family Friendly Rebate will receive a RM10 monthly rebate.
“All recipients of eKasih schemes, or the hardcore poor in the state, with a household income of less than RM1,036 per month, will also receive a rebate of RM10 each month under the Mutiara Rebate,” he said.
He said those in the B40 group who are eligible for the Family Friendly rebate scheme will need to submit applications to PBAPP, details of which will be made available on PBAPP’s social media page soon.
Chow said Penang Water Supply Corporation’s (PBAPP) revenue was affected when it did not review the rates for so many decades.
“Revenue is important to ensure efficient operations and for PBAPP to implement capital investment such as build new infrastructure, repair aged pipelines and to ensure constant quality water supply,” he said.
He said the consumers cannot hope for the water tariff rates to remain the same while expecting PBAPP to invest in infrastructure and to implement the RM1.2 billion Penang Water Contingency Project.
“PBAPP had subsidised about RM503 million between 2019 and 2023 while 593,255 consumers continued to enjoy low tariff rates,” he said.
He said even with the hike in tariff rates, the cost of operations in PBAPP is still higher.
“With the increase, PBAPP is expected to record revenue of RM86 million per year but PBAPP will still need to subsidise about RM78 million for the same period,” he said.
He said the recent scheduled water supply disruption and before that, sudden water disruptions in several areas, due to aged infrastructure and pipelines meant that it is time for Penang to hike up its tariff rates.
“This is the most opportune time to increase the rates because people saw what happened to our aged infrastructure and they expect PBAPP to spare no expense at repair and upgrading works and ensuring water supply was not disrupted,” he said.
Additionally, he said Penang is not the only state to see a hike in water tariff rates as other states in the peninsula will also see a hike as announced by SPAN.
Earlier, Zairil announced that the water tariff adjustment for domestic consumers in Penang will remove two bands from the existing rates.
Previously, there were five different bands with a sixth band for water conservation surcharge.
The previous rates were RM0.22 (Band 1 : 0 - 20 cubic metre), RM0.46 (Band 2: 20 - 40 cubic metre), RM0.68 (Band 3: 40 - 60 cubic metre), RM1.17 (Band 4: 60 - 200 cubic metre), RM1.30 (Band 5 : above 200 cubic metre) and water conservation surcharge RM0.48 for above 35 cubic metre.
The minimum charge per month was RM2.50 or RM5 every two months.
Under the adjusted rates, the water conservation surcharge was removed.
The rates will be RM0.55 for Band 1 (0 - 20 cubic metre), RM1.10 for Band 2 (20 - 35 cubic metre) and RM2 for Band 3 (above 35 cubic metre).
“The minimum charge will be RM5.50 per month but including the imbalance cost pass through (ICPT) electricity costs, the total bill will be RM6.20 per month,” Zairil said.
He said in Penang, about 52 per cent of the consumers use only Band 1 so their monthly bills will only be RM6.20 or RM12.40 every billing cycle of two months.
