THE government has agreed to maintain the water tariff for domestic use (residential) in the peninsula and Labuan, in view of the rising cost of living, according to the Environment and Water Ministry.

The cabinet meeting on June 22 that agreed on the matter, also agreed to the implementation of the adjustment of water tariffs for non-domestic and special categories in Peninsular Malaysia and Labuan, effective August 1, involving an average increase of 25 sen per cubic metre.

It follows the cabinet meeting’s agreement with the use of the tariff setting mechanism (TSM) instrument, in reorganising the management of the country’s water supply.

“This increase is actually still low and cannot cover the actual cost of providing water supply services of RM1.68 per cubic metre,” the ministry said in a statement today.

It also said there are some states where the tariff has never been revised for a very long period, such as Pahang for 39 years and Perlis for 26 years.

The TSM, developed by the National Water Services Commission in 2016, is a systematic, fair and transparent water tariff setting mechanism, to guide the national water service industry to achieve long-term sustainability.

“The development, planning and implementation of the TSM are conducted with the full involvement of all stakeholders,” it said.

It added that, in line with the government’s concern for the economic situation of the people, state water supply operators are advised to continue with existing initiatives, which are to provide assistance to domestic users in a targeted manner, such as giving rebates to the B40 group. – Bernama, July 26, 2022.