THE National Water Services Commission (SPAN) established new domestic tariffs for the Federal Territory of Labuan and Peninsular Malaysia, including Penang, with a focus on four key objectives.
According to Chief Minister Chow Kon Yeow, these tariffs aim to cover operational expenses (OpEx), capital expenditure (CapEx), and the costs associated with preserving natural resources, all while ensuring profitability for the state’s water company, Penang Water Supply Corporation (PBAPP).
“Inadequate operational expenses (OpEx) can disrupt the company’s operations, while insufficient revenue for capital expenditure (CapEx) hinders necessary upgrades to ageing or leaking pipes.
“Additionally, preserving natural resources is a crucial cost to be considered, alongside the final objective of ensuring profitability.
“When setting tariffs, SPAN must ensure that the method employed aligns with all these objectives,” Chow replied to questions on water tariffs by the media.
Earlier, several assemblymen proposed a gradual increase in the water tariff to prevent burdening users.
Chow noted that water tariffs typically undergo review every three years. However, domestic water tariffs in the state have remained unchanged since 1992.
“If we had adhered to the practice of increasing tariffs every three years, the current hike would not appear as sudden,” he added.
Story by Tanushalini Moroter
Pix by Siew Chia En
Video by Muhamad Amir Irsyad Omar