PUTRAJAYA: New water tariffs for domestic users in Peninsular Malaysia and the Federal Territory of Labuan will involve an average increase of 22 sen per cubic metre, effective from Feb 1.
This adjustment is expected to impact approximately 6.9 million users in the domestic category, representing 86.6 percent of the 7.9 million account holders.
The 22 sen increase constitutes the average amount of increase for every 1,000 litres of water used.
The new water tariff is anticipated to result in an escalated billing range of RM1.60 to RM8 for each residence, or an increase of five to 27 sen per day for households using 20 cubic metres of water per month.
Domestic water usage is 237 litres per capita per day.
The National Water Services Commission (SPAN), in its statement today, said that the adjustment in water tariffs will be implemented according to the Tariff Setting Mechanism (TSM) for domestic category users.
The water tariff adjustment is also a way forward for water concessionaires in streamlining their services, as well as getting concessionaires to toe the line.
Deputy Energy Transition and Public Utilities Minister Akmal Nasrullah Mohd Nasir said this includes the Tariff Setting Mechanism (TSM) and billing.
"Prior to this, some states impose billing from the first 15 cubic metres of treated water, while others calculate from 20 cubic metre.
"Under the TSM, we will standardise it to be from the first 20 cubic metres," he said during a media briefing here.
The new water tariffs would see an increase of concessionaires' water revenue collection between RM2.4 million (Labuan Water Department) and RM105 million (Air Selangor) every year.
He said the move would be an opportunity for the concessionaires to improve their services through various water supply projects.
"We will make sure that the money is only used for intended purposes such as on improving the infrastructures, and not for other matters."
He expressed hope that consumers would be more prudent in their water consumption, with domestic water consumption in Malaysia standing at 237 litres per capita per day.
To ease the burden on water bills for the B40 (lowest 40 per cent of earners) income group, he said eight concessionaires have agreed to implement initiatives, including rebates.
"Some states have already started using existing government data such as e-kasih to identify B40 users.
"However, in the long run, we hope to be able to utilise data from Padu (the Central Database Hub) in identifying groups for the targeted assistance that would be coordinated by the ministry and Span (the National Water Services Commission)."
With the increase in water revenue collection, concessionaires would be able to kick start various infrastructure projects including replacing dilapidated pipes and new water treatment plants, he said.