DOMESTIC water consumers in Penang have been enjoying subsidised water.
Chief Minister Chow Kon Yeow has reiterated that, generally, the Penang Water Supply Corporation (PBAPP) has been subsidising between RM60 to RM70 million per year to sell water below cost.
“The company can still profit because higher rates are charged to non-domestic (commercial and industrial) consumers, creating a cross-subsidy.
“Domestic water consumers in Penang have been benefitting from subsidised water rates,” he replied to questions by journalists regarding PBA Holdings Berhad’s (PBAHB) 2023 net profit, and the Federal Government’s newly regulated domestic water rates for Penang households, effective Feb 1, 2024. These changes also applied to 10 other states and the Federal Territories of Kuala Lumpur, Labuan, and Putrajaya.
He responded to questions during a media conference at Jen Hotel today after attending PBAHB’s 24th annual general meeting (AGM).
PBAHB and PBAPP are government-linked entities, with the State Secretary Penang holding a 55% majority share.
Chow has earlier explained the water subsidy in detail during his winding-up speech at the Penang Legislative Assembly on May 30.
Questions on completed strategic water projects in 2023 and the first quarter of this year (mainly in south Seberang Perai) were also raised during the media conference today.
A journalist asked if the projects were due to the ongoing Sungai Bakap by-election.
Chow replied that the water issues in Sungai Bakap, south Seberang Perai (SPS), did not start during the by-election period; they began several years ago.
“Consequently, plans and projects were initiated, and some were completed last year, unrelated to the by-election.
“Each project typically takes one to two years to complete.
“These projects are either in progress or have been completed, demonstrating that action is being taken. When concerns arise about water issues in SPS, the government responds accordingly.
“Many projects are already completed, and the situation is monitored closely. So far, there have not been many complaints about disruptions,” Chow said.
PBAPP chief executive officer K. Pathmanathan said that the state government is making significant efforts to address the water issues in SPS.
Story by Christopher Tan
Pix by Law Suun Ting
Video by Adleena Rahayu Ahmad Radzi