Negri has submitted application to SPAN to review domestic water rates, says MB
Mentri Besar Datuk Seri Aminuddin Harun ( pic ) said an increase was necessary to enable state water concessionaire Syarikat Air Negri Sembilan (SAINS) to continue operating.
He said the recent increase in water tariffs would add to SAINS' operating expenditure.
"We are proposing a marginal increase for households as we need to understand that SAINS' operating costs will surely go up with the increase in tariffs.
"SAINS has also been giving some form of subsidy for a certain percentage of water usage and it has to increase water rates marginally to enable it to continue its operations," he said.
Aminuddin said a slight increase was also justified as about RM20mil annually is used to replace old and broken pipes in the state.
He said SAINS also had to spend money to repair and upgrade water tanks to ensure supply in some areas is not disrupted.
He also said more funds would be needed for more water tanks in areas with water supply issues.
Aminuddin said the state would apply for a RM100mil allocation from the Federal Government to improve the water supply network in the state.
"This is over and above the allocation set aside by SAINS," he said, adding that he hoped consumers would understand that the proposal to increase water tariffs was not to enrich Sains but to allow it to continue operating and provide quality water supply.
Last week, SPAN said it had received applications from 10 states to review their water tariff rates.
SPAN is empowered by the Water Services Industry Act 2006 to regulate and monitor the economic, technical, and social aspects of the water supply and sewerage services industry in Peninsular Malaysia, Putrajaya and Labuan.
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