Water Tariff Adjustment For Domestic Users In Peninsula Labuan From Feb 1

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SPAN says the structure for adjusted tariffs will be standardised across states in the peninsula and Labuan, while tariff rates will be reviewed every three years.PETALING JAYA: The National Water Services Commission (SPAN) has announced that an adjustment of water tariffs for domestic users in the peninsula and Labuan will be implemented from Feb 1.
SPAN said under the tariff setting mechanism (TSM), the structure for tariffs will be standardised across states in the peninsula and Labuan, while tariff rates will be reviewed every three years.
“The adjustment of domestic water tariffs starting Feb 1 in the peninsula and Labuan involves an average increase of 22 sen per cubic meter.
“This increase, however, is still low and cannot cover the actual cost of providing water supply services, which is RM1.75 per cubic meter based on actual records in 2022,” it said in a statement.
It said that to minimise the impact of the increase on monthly water bills for the public, water supply operators in each state are advised to continue existing initiatives such as providing targeted assistance to domestic users, including rebates for the B40 group.
SPAN added that adjustments to water tariffs for domestic users can no longer be deferred to avoid jeopardising the long-term sustainability of the water service industry, which would consequently impact water quality.
“Hence, tariff adjustments that reflect the cost of water supply are crucial to enable water operators to enhance service levels in continuously delivering quality water,” it said.
Previously, SPAN said that the adjustment of water tariffs expected to take place this year was aimed at ensuring the sustainability of services, not for water companies to make excessive profits.
SPAN corporate communications and consumer affairs unit director Fazil Ismail said the commission had conducted a TSM study to ensure a fair tariff adjustment for both water companies and consumers.
He said SPAN took into account companies’ operating expenses and capital expenses in determining the tariff rate to be implemented, adding that it was not the operator that determined the rate.
He said if the water tariff increase was implemented this year, the expected average increase for consumers would only be an additional RM3 per monthly bill.
“(For example) if consumers currently pay about RM20 for their bills, it will become RM23, only a 10 sen increase per day and a minimum increase imposed on consumers,” he said. - FMT

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