THE Penang Water Supply Corporation (PBAPP) has again urged Putrajaya to approve its proposed water conservation surcharge (WCS) hike from 48 sen to RM1 per 1,000 litres. 

PBAPP and PBA Holdings Bhd chief executive officer Jaseni Maidinsa said the federal government had not provided feedback on the proposal for eight months despite five re-submissions – twice in June, and once in September, October and November. 

PBAPP first applied to review the WCS on April 28 this year. 

“By law, PBAPP’s application is subject to federal government approval. The federal government is responsible for approving water tariffs and water service charges, in accordance to the SPAN (National Water Services Commission) Act 2006 (Act 654) and the WSIA (Water Services Industry Act) 2006 (Act 655),” Jaseni said in a statement today. 

“The WCS is an important component of PBAPP’s water demand management strategy, and it is consistent with a directive from the Energy, Green Technology and Water Ministry for Penang to reduce its per capita domestic consumption.  

“The primary objective of the WCS is to encourage more domestic consumers in Penang to use less than 35,000 litres of water per month.”

Penang, despite being a small state, has high domestic water usage, with a low rate 32 sen per 1,000 litres. But those using more than 35,000 litres will be slapped with the WCS for every additional 1,000 litres they use.

PBAPP said from 2000 to 2010, the domestic consumption per capita increased from 255 litres/capita/day (l/c/d) to 291 l/c/d. 

Projections indicate that it would have reached 315 l/c/d in 2016 without the WCS.

Last year, with the 48 sen WCS, Penang’s per capita domestic water consumption “peaked” at 286 l/c/d. But it was still 36.8% (77 l/c/d) higher than the national average of 209 l/c/d.

Jaseni said this year, PBAPP planned to cut the per capita consumption by 10% to 257 l/c/d, with the proposed RM1 WCS.

“However, without the federal government’s approval, PBAPP cannot legally implement the RM1 WCS,” he said. 

Jaseni said it was crucial to introduce a higher WCS in efforts to reduce Penang’s high water consumption.

This was because the Penang government has a “no water rationing” policy. 

“As such, Penang’s high per capita domestic consumption must be reduced to minimise the risks of water rationing during dry seasons.

“By proposing a higher WCS, PBAPP is seeking to reduce domestic water consumption, which accounted for 59.4% of the total water consumption in Penang in 2016,” he said. 

Jaseni also explained that PBAPP had revised its capital expenditure (capex) budget – with soft loans from the state government – to avoid a tariff review that would have affected 589,797 registered water consumers.

“The proposed WCS review will only affect 23% of domestic consumers, who use more than 35,000 litres of water per month.

“These domestic consumers have the option of avoiding the WCS simply by using less than 35,000 litres of water per month,” he said. 

Jaseni also said the Penang government had also reduced the water intake fees, payable by PBAPP, by 50%.

“It should be clear that PBAPP is prioritising domestic water conservation as a sustainable and environment-friendly initiative in Penang, with support from the state. 

PBAPP hopes that SPAN and KeTTHA will support Penang’s water conservation and water demand management efforts, by prioritising the approval of the RM1 WCS proposal,” he said. 

Penang was previously pressured to up its water tariff rates to curb excessive water consumption. 

Despite being criticised by non-governmental organisations, such as consumer groups, for maintaining low tariff rates, the state government insisted on increasing the WCS as a way to reduce domestic water consumption. – December 26, 2017.