KUALA LUMPUR – Water concessionaires stand to lose their operating licences if they perform below par, said the National Water Services Commission (SPAN) amid the tariff hikes come February 1.
SPAN chief executive officer Datuk Ahmad Faizal Abdul Rahman said penalties outlined in the Water Services Industry Act 2006 could be dished out if their services are found to be unsatisfactory.
He added that performance will be evaluated based on key performance indicators (KPIs) set for supply coverage, reduction in non-revenue water, and water quality, among others.
“With the increased revenue (following the revised tariffs), they would face stringent action (for failing to improve services and infrastructure). This would end the chicken and egg situation, where concessionaires claimed a lack of financial capacity to improve their quality of service.”
He added that services are impacted by pipelines, which were installed more than 30 years ago, that need replacing and disrupted maintenance works, among others.
SPAN today announced that domestic water tariffs will see an average 22 sen hike per cubic metre starting February 1 for consumers in Peninsular Malaysia and the federal territory of Labuan.
It said the increase is based on the needs and requests of the state governments, but Putrajaya, via SPAN, will monitor closely to ensure that service improvements are carried out in line with the hikes.
The tariff increase still does not cover the actual cost – RM1.75 per cubic metre – of water supply services based on 2022 records. – January 17, 2024