KUALA LUMPUR (Jan 17): The National Water Services Commission (SPAN) has announced that water tariffs for domestic users in the peninsula and Labuan will increase an average of 22 sen per cubic meter (cu m), effective from Feb 1.
In a statement, SPAN said this water tariff adjustment is implemented in response to the needs and requests of the state governments.
Nevertheless, SPAN will closely monitor to ensure that water service improvements align with the tariff increase.
SPAN also said the water tariff adjustments, governed by the Tariff Setting Mechanism (TSM), will standardise the tariff structure and components for the states in the peninsula and Labuan, with a three-year review cycle to maintain consistency in fee determination.
SPAN added that this increase in water tariff is still insufficient to cover the actual cost of providing water supply services, amounting to RM1.75 per cu m based on the actual record of 2022.
However, through this tariff review, SPAN highlighted that water operators are better prepared to make continuous investments in developing water supply infrastructure, including building or upgrading water treatment plants, replacing obsolete pipes, conducting regular maintenance, and efficiently addressing complaints.
"This approach ensures the continuity of water supply services and meets user expectations," it added.
To mitigate the impact of the increase on people's monthly water bills, SPAN advised water supply operators in each state to continue existing initiatives, such as providing targeted assistance, including rebates to the B40 group.
SPAN also emphasised that adjusting water tariffs to reflect the cost of water supply is crucial for enabling water operators to enhance the level of service in supplying continuous, high-quality water.
"The adjustment of tariffs for the domestic category can no longer be delayed to avoid affecting the long-term sustainability of the water service industry, thus impacting the quality of water supply services," it said.