KUALA LUMPUR: The new water tariffs, which will see domestic users in the peninsular and Labuan to pay an average of 22 sen more for every cubic metre beginning Feb 1, are still insufficient to cover the actual cost of providing water supply services, according to the National Water Services Commission (Span).
In a statement today, Span said based on its records in 2022, the actual cost of providing water supply services was RM1.75 per every cubic metre.
The commission added that the adjustment made to the water tariffs, which is made using the Tariff Setting Mechanism (TSM), said SPAN, was implemented based on the needs and at the request of the state governments.
The commission will nevertheless closely monitor and ensure improvement to the water supply services are being made following the introduction of the new water tariffs.
"The adjustment to the water tariffs can no longer be postponed to avoid compromising the sustainability of the water supply services industry in the long-term subsequently impacting the water supply services to the people.
"The adjustment made to the water tariffs to reflect the actual cost of water supply is crucial to enable operators of water supply services to enhance the level of their service in providing consistently high-quality water," the statement said.
Earlier today, Deputy Energy Transition and Public Utilities Minister Akmal Nasrullah Mohd Nasir had announced that the new water tariffs would help water concessionaires streamline their services.
He added that prior to this, some states imposed billing from the first 15 cubic metres of treated water, while others calculated from 20 cubic metres.
To minimise the impact of the introduction of the new water tariffs on domestic users, Span said the commission had advised water concessionaires in their respective states to continue the existing initiatives.
These included continuing providing targeted assistance to domestic users as well as offering rebates to users in the B40 income group.