Average Water Tariffs to Rise!

The National Water Services Commission (SPAN) has announced that water tariffs for domestic users in Peninsula and Labuan will increase by an average of 22 sen per cubic meter (cu m), effective from Feb 1. The new water tariff is expected to involve an increase in bill charges ranging from RM1.60 to RM8 for each home, or five to 27 sen per day for household usage of 20 cubic metres per month. In a statement, SPAN said this water tariff adjustment is implemented in response to the needs and requests of the state governments. 

SPAN said the water tariff adjustments, governed by the Tariff Setting Mechanism (TSM), will standardise the tariff structure and components for the states in the Peninsula and Labuan, with a three-year review cycle to maintain consistency in fee determination. SPAN added that this increase in water tariff is still insufficient to cover the actual cost of providing water supply services, amounting to RM1.75 per cu m based on the actual record of 2022.

In contrast, the average revenue per cubic metre is only RM1.43, meaning a shortfall of 32 sen per cubic metre. A cubic metre is equivalent to 1,000 litres. For context, these territories collectively consume 15.6 billion litres of water per day. For domestic consumption alone, each person is using 237 litres per day, according to Span’s 2022 fact book.

Source: https://commons.wikimedia.org

However, through this tariff review, SPAN highlighted that water operators are better prepared to make continuous investments in developing water supply infrastructure, including building or upgrading water treatment plants, replacing obsolete pipes, conducting regular maintenance, and efficiently addressing complaints.

To mitigate the impact of the increase on people's monthly water bills, SPAN advised water supply operators in each state to continue existing initiatives, such as providing targeted assistance, including rebates to the B40 group. SPAN also emphasised that adjusting water tariffs to reflect the cost of water supply is crucial for enabling water operators to enhance the level of service in supplying continuous, high-quality water.

Domestic water consumers in Penang will have to pay double beginning Feb 1 as the state water authority increases its tariffs. Those who use more than 20 cubic metres a month will also see an increase in tariff rate, with the Penang Water Supply Corporation (PBAPP) charging RM1.10 for every cubic metre for the next 15 cubic metres; and RM2 for every cubic metre beyond 35 cubic metres a month.

Despite the adjustment, he said 77 percent of domestic water consumers in Penang would still be paying tariffs less than RM10.85 per month. In Negeri Sembilan, the state government is taking a similar move as Penang, where it is increasing the state water tariffs by close to 30 percent. Meanwhile, the Sabah government will maintain its water tariffs despite Span’s adjustment announcement.

The effect of this is that other costs including food items will move up while wages remain stagnant. We need alternatives--- but for a tropical country water should not be problem. The real issue is NRW which is over 34% nationwide. If you can halve this, then the rates need not move. How do we do that? There is technology available to detect and rectify, but we don’t want that route because there are interested parties who prefer the traditional contract repair works--- more lucrative for all!  

References:

Average water tariffs rise by 22 sen/cu m in Peninsular Malaysia, Labuan from Feb 1, Choy Nyen Yiau, The Edge Malaysia, 18 Jan 2024

Water tariff issue: Residents advised to optimise usage at home, Malaysiakini, 18 Jan 202

Penang water tariffs to double, no rate hike in Sabah, Malaysiakini, 17 Jan 2024