The adjustment of water tariffs expected to take place this year is aimed at ensuring the sustainability of services, and not for water companies to make excessive profits, according to the National Water Services Commission (SPAN).
Its corporate communications and consumer affairs unit director Mohd Fazil Ismail said SPAN has conducted a tariff setting mechanism study to ensure a fair tariff adjustment for both water companies and consumers.
“We take into account the company’s operating expenses and capital expenses, and we have determined the rate (tariff) that should be implemented. It is not the operator that determines it,” he said.
Fazil said if the tariff increase is implemented this year, the expected average increase imposed on 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. It is a minimal increase imposed on consumers,” he said.
Fazil said current water tariffs, which are perceived as being too low, are causing water companies to be unable to upgrade basic infrastructure, including replacing pipes and facilities.
“Most of the problems (with water services) are due to old pipes and facilities. They want to carry out the upgrading work, but because the tariff is low and operators don’t have enough funds, how can the work be carried out?”
The raise in tariffs has been widely announced by state’s who have been calling for a revision as cost of managing water has become increasingly expensive due to legacy piping upgrades.
