Penang Submits Application to Raise Water Tariff to SPAN
BUTTERWORTH, Dec 23 – In order to ease the financial burden on the Penang Water Supply Corporation (PBAPP) and address the subsidies allocated to domestic customers, the state of Penang has submitted an application to the National Water Services Commission (SPAN) to raise water tariffs for domestic users, according to Penang Chief Minister Chow Kon Yeow.
Currently, PBAPP spends over RM100 million annually on water subsidies for domestic customers, while the current domestic tariff has remained unchanged since 2015. In contrast, a new tariff for commercial users was introduced earlier this year. Recognizing the need for a fair and sustainable water tariff structure, Penang is seeking a revision to better allocate costs and distribute resources equitably.
In a statement, Chief Minister Chow emphasized the importance of implementing a revised tariff structure to ensure the continued provision of quality water supply services. He stated, We need to strike a balance between providing affordable water to domestic customers and ensuring the long-term sustainability of water supply in Penang. The current tariff structure is no longer viable, and an adjustment is necessary to reflect the actual costs involved in delivering water to households.
The application to SPAN aims to address the financial challenges faced by PBAPP, enabling them to allocate funds more efficiently and sustainably. The potential increase in water tariffs would help cover the expenses incurred by PBAPP for maintaining and enhancing water supply infrastructure, ensuring reliable and high-quality water supply for all customers.
While the proposal to raise water tariffs may cause concern among consumers, PBAPP assures that any adjustments will be done fairly and responsibly, taking into account the welfare of consumers. The PBAPP’s commitment to providing affordable water will remain a priority, ensuring that the proposed tariff adjustments do not burden low-income households excessively.
Penangites can rest assured that the state government is committed to maintaining transparency and public engagement throughout this process. Chief Minister Chow emphasized that the application to raise water tariffs is a measured response to the increasing financial strain on PBAPP, and is aimed at securing the long-term sustainability of water supply services in Penang.
It is expected that SPAN will carefully evaluate the application, taking into consideration various factors, such as the financial sustainability of PBAPP, the welfare of consumers, and the overall impact on the state’s water supply infrastructure. The decision by SPAN regarding the proposed tariff adjustment is anticipated to be reached in the near future, after a thorough review and consultation process.
As the state of Penang strives to strike a delicate balance between affordability and sustainability, this application marks an important step toward ensuring the availability of quality water supply for all residents. By addressing the financial challenges faced by PBAPP and revising the domestic water tariff, Penang is taking proactive measures to build a more robust and resilient water supply system that will benefit generations to come.
