Penang exco man clarifies Penang’s water tariff structure

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THE National Water Services Commission (SPAN) has standardised the ‘bands’ for domestic water supply services in all states.

 

“It was done a few years back. Now, all state has the same number of bands – Band One, Band Two and Band Three,” Penang Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari said.

 

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The domestic water rates for Penang with effect from Feb 1, 2024.

 

Zairil said that the volume of water usage stated in each band for every state is the same.

 

“The only difference is the water tariff of each band because every state has different operation costs.

 

“Penang domestic water consumers enjoy the second cheapest water tariff for Band One and Band Two in Malaysia.

 

“We went from the cheapest to second cheapest (for Band One and Band Two) after the new tariff was implemented. So, consumers should not say that the tariff is high.

 

“If we went from cheapest to second highest, then I agree that it is high.

 

“All these are domestic water tariffs. We do not subsidise commercial water tariffs,” he replied to questions from journalists after announcing the renaming of roads in Jalan S.A. Abdullah Bukhari today.

 

Zairil added that Band Three operates similarly to the Water Conservation Surcharge (WCS).

 

Former Penang Chief Minister Lim Guan Eng has proposed reintroducing the WCS as a measure to address water waste.

 

This suggestion follows a recent water tariff increase by the Penang Water Supply Corporation (PBAPP), which is reportedly aimed, in part, at curbing excessive consumption.

 

Zairil said re-instating WCS was not for Penang or PBAPP to do.

 

“The tariff for Band Three is set at a higher rate for those with high water usage,” he said.

 

He also said that the Federal Government would only provide allocation for raw water infrastructure projects.

 

“The Federal Government has never allocated funds for treated water infrastructure projects.

 

“Yes, we do apply to the Federal Government for allocations to implement raw water infrastructure projects.

 

“However, PBAPP must use its own funds to implement treated water infrastructure projects such as building new water treatment plants and treated water pipes,” he said.

 

On the state’s latest announcement regarding PBAPP’s rebates for Penang domestic water consumers, Zairil said the decision was made after a thorough discussion with all parties and PBAPP.

 

“We found an affordable formula, and at the same time can ease the burden of the domestic water consumers during this transition period,” he said.

 

After a meeting yesterday (June 5), the Penang executive council (exco) directed PBAPP to provide rebates to domestic water consumers in Penang.

 

It was reported that PBAPP will provide free water for the first 10,000 litres of each bill for six months, effective from July 2024 to December 2024.

 

“With these rebates, all domestic water users will receive a rebate of RM6.20 on each bill. For example, users in the first band will only need to pay RM6.20 (RM12.40 minus RM6.20) for two months, while users in the second band billed RM30 will only need to pay RM23.80 for two months,” the statement by Zairil highlighted yesterday.

 

PBAPP has also expanded the ‘Skim Rebat Mesra Keluarga RM20’ (RM20 Family-Friendly Rebate Scheme) for large households (eight people or more) with an income of RM5,000 or less. The threshold income increased from the previous RM2,250 threshold.

 

“The state government hopes that the provision of free water for the first 10,000 litres (of each bill) to all domestic water users in Penang for six months and the RM20 rebate for large households with a monthly household income of RM5,000 or less will help alleviate the burden on the residents,” Zairil said.

 

 

Story by Christopher Tan

Pix by Darwina Mohd Daud