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Penang delays new water tariff until July 2016

Penang delays new water tariff until July 2016

GEORGE TOWN: Penang has decided to postpone the implementation of the new water tariff under the Tariff Setting Mechanism (TSM) for the Second Implementation Period (TP2) scheduled from today until July next year.
Chief Minister Chow Kon Yeow said the one-year delay was expected to benefit approximately 715,957 consumers across the state.
"The decision was made to allow more time for further preparation and adjustments," he said today.
Chow said, under the revised tariff, the majority of domestic users in Penang would see a moderate increase in their monthly water bills.
Specifically, 79.88 per cent of the 613,660 residential consumers who use up to 35 cubic meters (m³) of water per month will face an increase ranging from RM0.30 to RM2.55.
Meanwhile, 95.38 per cent of the 98,155 non-domestic users (businesses) consuming up to 200 m³ of water per month will see their bills rise by between RM3.60 and RM35.70 monthly.
"This new tariff structure is expected to generate an additional RM20 million for the Perbadanan Bekalan Air Pulau Pinang (PBAPP) over a six-month period next year.
"The additional revenue will be allocated towards ongoing water supply service upgrades, with more details to be announced in the future," he said.
This move highlights the government's commitment to improving water supply services while managing the impact on consumers.
It was reported that new water tariff rates for Peninsular Malaysia and Labuan had been gazetted, and would come into force today.
With the exception of Perak and Labuan, the domestic tariff rates had gone up in all states.
It was reported earlier this year that the Penang government planned to delay the implementation of a proposed water tariff revision by at least six months.
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