PBA proposes water tariff hike plan

PETALING JAYA: PBA Holdings Bhd's subsidiary Perbadanan Bekalan Air Pulau Pinang (PBAPP) has submitted an application to the National Water Services Commission (Span) for a proposed water tariff revision.

The increase could see water tariffs for consumers increase by 20.05% and for trade consumers by 18.8% to reduce wastage and conserve the resources.

PBAPP reviewed the existing water tariff structure after obtaining consent from the Penang government, PBA said in a filing with Bursa Malaysia.

PBAPP is the water operator for Penang, which operates and maintains the treatment, distribution and supply of treated water in the state.

Under the Water Services Industry Act 2006 (WSIA) licensing framework, the water tariff revision proposal shall subject to the approval from Span.

The rationale for PBAPP to propose and submit the application for the water tariff revision proposal was because it is not sustainable for Penangites to use 311 liters per capita per day (l/c/d), which is 50% above the national average of 212 l/c/d.

This review in tariffs is to educate domestic Penang consumers to reduce their consumption pattern.

In addition, it serves to make conservation of water resources a priority, so that Penang can survive the long drought without any rationing.

"The tariff review will not affect the first band of water tariff 0-20 m3 at 22 sen/m3 so as to reward those who save water nor penalise conscientious water users. PBAPP stresses that even after we raise water tariffs, Penang will still enjoy the lowest domestic water tariffs in Malaysia and for trade tariffs, we are still below the national average," PBA said.

It added that funding requirements to support capital projects to be undertaken by PBAPP, including construction of reservoirs, water treatment plants, trunk mains, pumping stations and other related water supply infrastructures to ensure the current level of service and meeting the future water supply needs.

The last revision to the existing water tariff structure was in 1993/2001 for the domestic rates and 2010 for the trade rates.
The water tariff revision proposal is subject to the approval by Span.

The company will announce the effective date of its new water tariff rates upon obtaining the approval from Span.