GEORGE TOWN: Penang is still enjoying among the lowest water tariff in the country despite the new water tariff announced by the National Water Services Commission (SPAN).
Chief Minister Chow Kon Yeow said this was an opportune time for the increase after what the state went through during the scheduled water supply disruption from last week.
He said there was a need to implement new water infrastructure works to ensure Penang remains a water-resilient state.
"With the new water tariff, the Penang Water Supply Corporation (PBAPP) is expected to receive an additional RM86 million in revenue annually.
"Penang had postponed previous water tariff adjustments that was approved. The water tariff for the first band had not been adjusted since 1993.
"Even with the new water tariff, the rate in Penang is still among the lowest in the country," he told a joint press conference with state Infrastructure Committee chairman Zairil Khir Johari here today.
SPAN had said the new water tariffs, which would see domestic users in the Peninsular and Labuan to pay an average of 22 sen more for every cubic metre beginning Feb 1, were still insufficient to cover the actual cost of providing water supply services.
It said based on its records in 2022, the actual cost of providing water supply services was RM1.75 per every cubic metre.
It added that the adjustment made to the water tariffs, which was made using the Tariff Setting Mechanism (TSM), was implemented based on the needs and at the request of the state governments.
Chow assured that the new water tariff would not affect those in the low income group, namely the B40 group.
He said the state would implement rebate programme to help them, particularly the Rebat Mesra Keluarga and Rebat Mutiara.
He said, despite the additional RM86 million in revenue annually, PBAPP was still bearing a subsidy of RM78 during the same time.
"Since 2019 until 2023, PBAPP's subsidy amounted to RM503 million to fund operations cost and the need to improve infrastructure to ensure water supply to the 593,255 domestic water account holders in the state.
"This indirectly shows that the water tariff in the state is much lower than PBAPP's operating costs and the people are paying a very low water tariff from the actual cost," he added.
Penang will finally see a hike in water tariff rates after 31 years following SPAN's tariff adjustment announcement for domestic users in the peninsula and Labuan today.
Chow said the state had postponed previous tariff rate adjustments that was approved but it is time to increase the rates now.
This morning, SPAN announced an increase of an average of 22 sen per cubic meter (cu m) in water tariff rates for domestic users in the peninsula and Labuan effective Feb 1.
It said the tariff adjustment was in accordance with the needs and requests of respective state governments.
However, those in the B40 group will not be affected by the tariff hike as there will be a Family Friendly Rebate scheme for B40 households of more than eight people and household income of lower than RM2,250, Chow said.
He said those who qualify for the Family Friendly Rebate will receive a RM10 monthly rebate.
"All recipients of eKasih schemes, or the hardcore poor in the state, with household income of less than RM1,036 per month will also receive a rebate of RM10 each month under the Mutiara Rebate," he said.