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Water price to go up 20% in Penang

Water cuts in Tampin on April 7 – Bernama

Penangites can expect to pay 20% more for water under new tariff rates proposed by the state’s water operator.

However, PBA Holdings Bhd chief executive officer Jaseni Maidinsa said despite the 20% increase for domestic consumers and 18.8% for trade consumers, the rates remain the lowest in the country.

He said the proposed average domestic tariff for the first 35 cubic metres per month at 32 sen from 31 sen previously was still the lowest in the country.

The national average tariff for domestic consumption was 66 sen in 2012.

"The proposed water tariff will not penalise the lower income group or conscientious water users who use less than 35 cubic metres of water a month," he said today.

Jaseni, who is also Penang Water Supply Corporation general manager, said the proposed rates would be submitted to the National Water Services Commission (SPAN) for approval next week.

"Until then, we cannot say when the revised tariff will be imposed," he said.

Under the proposal, the revised water tariffs for Penang's 546,749 registered domestic and trade water consumers are to promote water saving.

According to the proposal, the minimum charge for domestic consumers will be up 50 sen to RM3.00.

However, there will be no change to the 22 sen charged for the first 20 cubic metres of water used. For the next 20 to 40 cubic metres, the new rate is 46 sen (up 4 sen), and 40 to 60 cubic metres at 68 sen (16 sen increase).

For 60 to 200 cubic metres, the rate will be up 27 sen to RM1.17. The rate for usage exceeding 200 cubic metres will be up 30 sen to RM1.30.

"The minimum charge for domestic water supply and consumption up to 40 cubic metres was last reviewed in 1993," Jaseni said.

He also said large households with eight or more family members would get a 60% discount on the water conservation surcharge effective May 1.

For trade consumers, the minimum charge is up from RM10 to RM12. The proposed new rates are 85 sen (first 20 cubic metres), RM1.05 (20 to 40 cubic metres), RM1.45 (40 to 200 cubic metres) and RM1.45 (over 200 cubic metres).

The last time trade water tariffs were reviewed in Penang was in 2010.

Penang records the highest water usage at 311 litres per capita per day, which is 50% higher than the national average of 212 litres.

Jaseni said the proposed increase is aimed at avoiding water rationing should Penang be hit by a serious dry spell.

He said it is forecast that Penang will be hit by droughts later this year and there is need for better long-term management of the state's water demand.

"It is proven that higher water tariffs lead to lower consumption... We hope that by reducing the consumption, it will also help in securing the federal government's approval and funding for the RM2 billion Sungai Perak Raw Water Scheme," he said.

The Pakatan Rakyat state government has been arguing that it needs the project to secure water sources for Penang until 2050.

In September last year, Putrajaya rejected the project that would involve pumping raw water from Sungai Perak via a new tunnel through Sungai Ijok and Sungai Kerian across the highlands before being extracted for treatment at the proposed Kerian Water Treatment Plant in Nibong Tebal.

Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili had reportedly said Penang has sufficient water supply, and pointed out that the state has the highest water consumption in the country.

Chief Minister Lim Guan Eng, who is also PBA chairman, said earlier this month that efforts by the state to educate locals on water conservation as well as the surcharge imposed had been ineffective in reducing the high water consumption and discouraging wastage. – April 25, 2014.