SPAN the agency that oversees water management in the country said the implementation of domestic water tariff adjustments in Peninsular Malaysia and the Federal Territory of Labuan is set to take effect from February 1, 2024.
A long time coming, the Unity Government has been raising the alert on possible tariff hike for water after it announced that subsidy in the country will be pared down with only the lower income group to be entitled. So far the government has rationalised subsidy for electricity and will be announcing new pricing for petrol come March.
SPAN said under the newly introduced Tariff Setting Mechanism, the adjustment will standardise tariff structures and components for domestic users in both the Peninsula and the Federal Territory of Labuan. Additionally, water tariffs will undergo regular reviews every three years, ensuring consistency in payment determination across states.
Starting February 1, 2024, the adjustment in domestic water tariffs will see an average increase of 22 cents per cubic meter. Despite this increase, SPAD said the increase it minimal as it still falls short of covering the actual cost of providing water supply services, which stands at RM1.75 per cubic meter based on records from 2022.
However, it also stated that as part of the tariff review, water operators ill still investments in developing water supply infrastructure. Including constructing or upgrade of water treatment plants, the replacement of aging pipes, implementation of regular maintenance, and the improvement of complaint-handling mechanisms.
