Proposed Penang Water Tariff Revision Still Pending Span Approval

---

 The National Water Services Commission says it is reviewing the matter and no decision has been made.
The National Water Services Commission said it received applications from operators from 10 states to review tariff rates.PETALING JAYA: The National Water Services Commission (SPAN) has yet to approve the Penang Water Supply Corporation’s (PBAPP) application for a proposed revision of water tariffs in the state
SPAN said that as of June 30, it has received applications to review water tariffs from PBAPP and operators in nine other states.
The other states are Perlis, Kedah, Kelantan, Terengganu, Selangor, Negeri Sembilan, Melaka, Johor and Pahang.
“All applications are under review and no decisions have been made,” SPAN said in a statement.
The commission said it would ensure that all factors are carefully considered before making any decision.
They include prioritising the wellbeing of 27.2 million consumers and safeguarding the ability of service operators to continue delivering reliable services.
SPAN’s statement comes after Penang chief minister Chow Kon Yeow said he would request a delay to the proposed water tariff hike.
He said that once the application a for tariff hike had been approved, he would ask the federal government to defer the new tariffs until the middle of next year.
Under federal water regulations, SPAN requires a periodic review of tariffs by water operators. However, any actual increase still needs Cabinet approval and cooperation from the state governments.
PBAPP had launched a RM5 billion sukuk programme – the first by a state-linked water utility – to fund major infrastructure projects without overreliance on tariff hikes or bank loans.
The funds raised will support initiatives such as the RM2.1 billion Water Contingency Plan 2030.
Chow said PBAPP would also explore private financing and leaseback models to better manage costs over time. - FMT

---