Penang Agrees To Standardising Water Tariff Setting Mechanism

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The Penang government has agreed to Putrajaya's proposed water tariff setting mechanism but needs to wait for it to be standardised throughout the country, said Chief Minister Chow Kon Yeow.

Chow (above) said once the proposed mechanism is accepted by all states, each administration can then impose a tariff rate based on a standardised formula.

"We feel that the issue was not properly explained because it is two-pronged.

"Firstly, it involves the standardisation of the tariff setting mechanism - where this has to be determined first. This needs the cooperation of all states," he said at a press conference in Seberang Jaya today.

"After this mechanism has been agreed, we can then decide how much tariff needs to be imposed. What we have now is that every state has a different mechanism," Chow added.

He was asked to comment on the Ministry of Water, Land and Natural Resources's remarks about several states with no plans to increase their water tariff being asked to submit their respective mechanisms
Its minister Dr Xavier Jayakumar (above) said this was due to the high cost of preparing and managing treated water.

He added that remedial actions had to be taken to address the water crisis in the states.

In Parliament last October, the government had proposed an increment rate between 0.06 sen to 0.71 sen for every 1,000 litres under a new tariff setting mechanism.

Chow said after the mechanism has been standardised, only three types of tariffs will be imposed.

However, all states will then be implementing the same formula in determining the rates.

"Each state will then decide how much to impose based on the standardised mechanism.

"The government has to get all states to agree to the mechanism, to agree that there should be a uniform tariff setting formula," Chow said.

Unlike Penang, Negeri Sembilan Menteri Besar Aminuddin Harun has rejected the move to increase water tariff.

He said this was in line with the Pakatan Harapan government’s manifesto in the 14th General Election, that there would be no increase in water tariff in five years.

However, Xavier said several states had agreed with the ministry’s proposal to increase the tariff and the matter will be brought to the cabinet for approval before being announced in the near future. - Mkini

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