Sanusi: Kedah water tariff hike to stay below 5 sen
Sanusi said the application was formally submitted by Syarikat Air Darul Aman (Sada) in line with the mechanism set by the National Water Services Commission.
"I'm not sure of the exact figure, but I believe it will be no more than five sen. Even the minimum rate may see only a slight increase," he said at a press conference after launching the logo for the 7th Kedah Darul Aman Sports Games at Wisma Darul Aman here today.
"The last tariff hike was over a decade ago, around 2011 or 2012. Let's wait for the approval."
Sanusi said over 60 per cent of Sada's operating costs are tied to electricity bills, which amount to RM128 million a year.
He added that the situation was not unique to Kedah, as most water operators nationwide were struggling with rising treatment and maintenance costs.
"The largest share of Sada's operational cost is electricity, followed by staff salaries, treatment chemicals and infrastructure maintenance.
"If electricity tariffs increase while water tariffs remain stagnant, operators will be under financial pressure.
Sada alone pays RM128 million a year just for electricity. That's 60 per cent of its operating cost. So when electricity rates rise every year, but water tariffs stay the same, operators are squeezed."
He also touched on the regulatory framework under the Water Services Industry Act 2006, which transferred state water supply assets to Pengurusan Aset Air Bhd (PAAB) as part of efforts to restructure water-related debt.
"Kedah previously had RM2.3 billion in water-related debt. Under the Water Services Industry Act, all assets were transferred to PAAB, and the state government now pays lease charges, which count as debt repayments. The state must also fully own its water operator."
Sanusi dismissed claims that the state government planned to relinquish control of Sada, saying such a move would be legally impossible under the act.
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