THE National Water Services Commission (SPAN) has adjusted the Peninsular Malaysia and the Federal Territory of Labuan’s water supply service rates for the domestic category, and the new rates will take effect from Feb 1 this year.
SPAN is the national regulatory body for the water and sewerage industry for Peninsular Malaysia and the Federal Territory of Labuan.
Penang Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari said despite the adjustment, the water supply rates in Penang remain among the lowest in Malaysia.
“For your information, the lowest ‘band’ rates in Penang have not been reviewed since 1993, which was 31 years ago.
“Even with this adjustment, the Penang Water Supply Corporation (PBAPP) will still need to bear subsidies as the water supply rates are still lower than the production and operation costs,” Zairil told a media conference in Komtar today.
He added that despite the adjustment, 77% of domestic water consumers in Penang would still be paying tariffs less than RM10.85 per month; while 52% of domestic water users in the state would pay a tariff of RM6.20 per month.
Zairil said the increased revenue from the implementation of the new water supply service rate adjustment would be used for water supply infrastructure upgrades.
“However, it still cannot cover the costs of operations and necessary infrastructure upgrades,” he emphasised.
Appendix:
| New Domestic rate beginning Feb 1, 2024 | ||
| Category | Band | New rates (RM) |
| Domestic
(Individual meter) |
0-20m3 (cubic metres) | 0.55 |
| >20m3 -35m3 | 1.10 | |
| >35m3 | 2.00 | |
| Minimum charge | 5.50 | |
| New Domestic (bulk metre) rate beginning Feb 1, 2024 | ||
| Category | Band | New rates (RM) |
| Domestic (bulk metre) | Flat rate | 1.66 |
| Minimum charge | 16.60 | |
| Electricity charge | ||
| For all categories | RM | |
| Per m3 | 0.07 | |
Scenario 1 (Minimum consumption)
Existing rates (0-20m3 is RM0.22)
Total consumption: 20m3 (2 months – 1 cycle)
10m3 x RM0.22 = RM2.20
Total water bill (RM2.20 x 2 months) = RM4.40
Electricity bill = 0
Total bill (2 months) = RM5.00
New rates (0-20m3 is RM0.55)
Total consumption: 20m3 (2 months – 1 cycle)
10m3 x RM0.55 = RM5.50
Total water bill (RM5.50 x 2 months) = RM11.00
Electricity bill (20m3 x RM0.07) = RM1.40
Total bill (2 months) = RM12.40
Chief Minister Chow Kon Yeow disclosed that from 2019 to last year (2023), PBAPP bore a substantial subsidy burden, totalling about RM503 million.
“This financial support acted as a safeguard, mitigating operational costs, and facilitating essential infrastructure upgrades crucial for ensuring a reliable water supply to 595,579 domestic water users in the state.
“Indirectly, this indicates that the water tariff rates in Penang are lower than PBAPP’s operational costs, and users are paying significantly less than the actual costs,” Chow said.
He added that with the new tariff rate adjustment, PBAPP is expected to gain RM86 million a year.
“However, PBAPP still has to bear an estimated subsidy of RM78 million for the same period. In fact, this subsidy could have been spent on necessary water infrastructure projects, and to replace old existing water infrastructure.
“Penangites have been enjoying a huge subsidy from PBAPP for many years.
“Penang water consumers cannot expect the old water tariff to remain the same forever as funds are needed to replace, maintain and provide the state’s water infrastructure,” he said.
Chow also highlighted Penang’s Water Contingency Plan (WCP) 2030 projects as well as other related water supply projects, amounting to RM1.2 billion.
Among them are the Bukit Panchor Dissolved Air Floatation (DAF) Water Treatment Plant (WTP); Sungai Dua WTP Package 12A; Sungai Dua WTP-Butterworth distribution pipe; Macallum-Bukit Dumbar distribution pipe; Mengkuang Dam WTP Phase One; Sungai Kerian WTP; Sungai Muda WTP; and Sungai Perai Water Supply Scheme (including raw water pre-treatment).
“These projects are crucial to ensure continuous water supply to consumers in Penang,” he said.
Detailing the electricity charge, Chow said the new tariff rate adjustment also requires water consumers to pay the Imbalance Cost Pass-Through (ICPT) rates.
He said that ICPT is an approved mechanism by the Government and was implemented since 2014 to reflect changes in the cost of electricity generation, specifically fuel costs, annually.
“This electricity charge has been passed on to water consumers,” he explained.
Chow also replied to a journalist that water consumers in Penang understood the need to constantly maintain water supply facilities in the state to ensure a continuous supply of water.
“How long must we postpone the adjustment? Even with the new water tariff, PBAPP is still subsidising.
“This is a national exercise by SPAN (except for Sabah and Sarawak) which have their own water regulations,” he added.
PBAPP will be implementing two targeted rebate programmes to assist the poor and the needy following the adjustment of water supply rates.
The ‘Mesra Keluarga’ rebate of RM10 per month will be given to the B40 community which has eight people or more in a household. The household income must be RM2,250 and below per month.
Meanwhile, the ‘Mutiara’ rebate of RM10 per month will be given to the eKasih recipients (hardcore poor) earning a household income of RM1,036 and below per month.
The PBAPP will be announcing the registration mechanics for the ‘Mesra Keluarga’ and ‘Mutiara’ rebates on its Facebook page soon.
Story by Christopher Tan
Pix by Siti Nuratikah Rahmat
Video by Ahmad Adil Muhamad