By Amar Shah Mohsen
KUALA LUMPUR, Nov 9 — Residents in different states across the country could see an increase in water tariff as early as next year.
Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad said he will present a proposal to the Cabinet before the end of the year in hope that a new tariff mechanism can be enforced by 2024.
“We have discussed at the National Water Resources Council recently, and like I have said, there is a consensus among state governments across political the divide that there is a need for a review.
“Our tariffs are too low and I noticed that this is something most states agree with.
“We (ministry) will present a proposal on a tariff-setting mechanism to the Cabinet before year-end and hope that the setting of new tariffs for states will be allowed by 2024,” he told the Dewan Rakyat today.
He was responding to a supplementary question from Tumpat MP Datuk Mumtaz Md Nawi on the ministry’s plan to ensure there is no water crisis in the country.
However, it is unclear if all states will implement higher tariffs once the Cabinet grants approval.
Previously on November 1, Nik Nazmi had said his ministry is developing a mechanism that eliminates the need for states to seek ministerial approval for tariff adjustments.
“We would allow water operators to determine the tariff rate, but at the same time, we will still look at how we can safeguard the interests of both the B40 and M40 consumers,” he said.
The minister had also said in May that the Federal government plans to establish a maximum rate for the revision following requests from several states to increase domestic water tariffs for financial sustainability.
Meanwhile, Pengurusan Air Selangor Sdn Bhd acting chief executive officer Abas Abdullah had said in July that he hoped the government would review water tariff in the Klang Valley, noting that it has been unchanged for 17 years.
He said the RM2.45 billion revenue it collected last year was insufficient to cover operational costs and capital expenditure.
However, Menteri Besar Dato’ Seri Amirudin Shari said the state government has not made any decisions yet to increase the water tariffs, and that its main focus is to ensure the people’s survival and not burden them.
“The state government is committed to ensuring the water services system which channels water to over 8.4 million residents in Selangor, Kuala Lumpur and Putrajaya, will continue to be augmented,” he said in a statement.
