Penang: The implementation of the new water tariff in Penang, scheduled to take effect on July 1, cannot be postponed as it is crucial to ensure that various development and infrastructure upgrading projects can be carried out to safeguard the sustainability of future water supply. State Transport, Infrastructure, and Digital Committee chairman Zairil Khir Johari emphasized the necessity of the tariff revision due to insufficient profits currently recorded by the Perbadanan Bekalan Air Pulau Pinang (PBAPP) to finance large-scale projects planned to meet rising water demand.
According to BERNAMA News Agency, among the projects currently being implemented or planned are the construction of the Mengkuang Water Treatment Plant (LRA), which is now under construction, and two new LRAs in Sungai Krian with capacities of 80 million litres per day (MLD) and 114 MLD. Additional projects include raw water abstraction projects in Sungai Prai and Sungai Muda, as well as the replacement of ageing pipelines. Each water treatment plant requires investments amounting to hundreds of millions of ringgit, and these projects are essential to ensuring future water security.
Zairil addressed calls by several parties for the state government to defer the implementation of the new water tariff and provide a transparent explanation of the utility company's financial position, administrative expenditure, and future development plans. He noted that one factor contributing to delays in the development of water supply infrastructure in the past was the low tariff rate, which had limited PBAPP's ability to invest in new facilities. He stressed the need to strengthen PBAPP's financial resources to ensure that all planned projects can be implemented according to schedule.
The state government has considered the interests of domestic consumers, particularly low-volume water users, by ensuring that tariff increases for households consuming less than 35,000 litres of water per month remain manageable. The revision will affect 82 percent of domestic consumers, or households using 35 cubic metres of water or less per month, with an increase of 8.5 sen, or RM2.55 per month. The state government announced that Penang would implement new water tariff rates for domestic and non-domestic consumers from July 1, after the adjustment had been deferred for 12 months.