Latest news with #TariffSettingMechanism
New Straits Times
02-08-2025
- Business
- New Straits Times
Sada announces tariff adjustment to sustain water supply in Kedah
ALOR STAR: Syarikat Air Darul Aman (Sada) is implementing a tariff adjustment through a review of the Tariff Setting Mechanism for all categories of users in Kedah, taking into account the company's operational expenditure (Opex) and capital expenditure (Capex). In a statement, Sada said the tariff adjustment came into effect yesterday and will be reflected in the September billing cycle. "The tariff adjustment is a crucial requirement for the water operator to ensure long-term sustainability of the water supply in the state. "It is also in line with Sada's ongoing efforts to improve service quality through the development of water infrastructure projects currently being actively implemented by the state government and Sada itself. "Key focus areas include the replacement of old and deteriorated pipes, which are the main contributors to the non-revenue water (NRW) issue. "To address water supply shortages, several new water treatment plant (WTP) projects are being developed, including the Pelubang WTP, Kodiang WTP Phase 1, Padang Saga WTP Phases 4 and 5, Sidam Kiri WTP Phase 1, Sungai Karangan WTP Phase 1, and the construction of a compact plant at Kulim Hi-Tech," it said. Sada added that repair works for distribution systems and pump houses were also being actively carried out to address low water pressure issues in several areas. It said additional revenue from the tariff adjustment would be used to cover operating costs, repair and maintenance of existing systems, development of new, more sustainable and efficient water supply systems, improvements in service quality, including the company's capacity to respond to consumer complaints more swiftly, and to reduce the NRW rate in Kedah. "The adjustment also considers the need to meet the company's operating costs for 2025, which are expected to increase by six per cent, covering key components such as electricity, wages, raw water charges, and chemicals used in the water treatment process," it said. Sada said that these rising costs exerted direct pressure on the company's operational capacity to deliver efficient, stable and quality water supply services to the people of Kedah. "This tariff adjustment is seen as a strategic step to ensure the company's financial stability and to strengthen Sada's ability to continuously plan and implement service improvements," it added. Overall, the impact of the tariff adjustment was described as reasonable and not burdensome. Sada said the adjustment had gone through a thorough review with the National Water Services Commission (SPAN) and was being implemented in phases to avoid burdening users. According to the statement, the approach taken strikes a balance between user affordability and the need for the water operator to meet its operating expenses.
The Star
02-08-2025
- Business
- The Star
Sada announces water tariff adjustment for Kedah
ALOR SETAR: Syarikat Air Darul Aman (SADA) is implementing a tariff adjustment through a review of the Tariff Setting Mechanism for all categories of users in Kedah. In a statement, SADA announced that the tariff adjustment took effect Friday (Aug 1) and would be reflected in the September billing cycle. 'To address water supply shortages, several new water treatment plant (WTP) projects are being developed, including the Pelubang WTP, Kodiang WTP Phase 1, Padang Saga WTP Phases 4 and 5, Sidam Kiri WTP Phase 1, Sungai Karangan WTP Phase 1, and the construction of a compact plant at Kulim Hi-Tech," it said. Sada added that repair works for distribution systems and pump houses were also being actively carried out to address low water pressure issues in several areas. It said additional revenue from the tariff adjustment would be used to cover operating costs, repair and maintenance of existing systems, development of new water supply systems and improve customer service. "The adjustment also considers the need to meet the company's operating costs for 2025, which are expected to increase by 6%," it said. Sada stated that the adjustment had undergone a thorough review with the National Water Services Commission (SPAN) and was being implemented in phases. – Bernama
The Star
02-08-2025
- Business
- The Star
Water tariff for domestic users in T'ganu up eight sen per cubic metre
KUALA TERENGGANU: Domestic users in Terengganu will pay eight sen more for each cubic metre of water, up to 20 cubic metres per month, starting Friday (Aug 1). Syarikat Air Terengganu Sdn Bhd (Satu) chief executive officer Abdul Karim Endut said with the new rates, the minimum use charge for domestic users has risen to RM6.60 per month, but noted that the subsidised 20 cubic metres of water per month for each B40 household in the state would continue. "Water use at mosques and suraus registered with the Terengganu Islamic Religious Affairs Department will continue to be borne fully by the Terengganu state government under Satu. "For houses of worship and welfare institutions, existing tariffs will be maintained to support them," he said in a statement on Saturday (Aug 2), adding that existing subsidies have risen from RM2.5mil to RM3.0mil annually. A total of 75% of industrial and business users would see an average daily increase of RM1.24, while water supply for use on board ships docked at ports in the state would be charged rates applicable throughout Peninsular Malaysia, at RM8 per cubic metre (excluding electricity charges). The water tariff for data centres has been standardised throughout Peninsular Malaysia at RM5.30 per cubic metre (excluding electricity charges), he added. Abdul Karim explained that the Tariff Setting Mechanism, which took effect yesterday, had been agreed upon by the Cabinet on July 25, following receipt of an application from Satu. The new tariff reflects the state government's commitment to comprehensively tackling water supply issues. – Bernama
New Straits Times
01-08-2025
- Business
- New Straits Times
Penang delays new water tariff until July 2026
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.
The Star
01-08-2025
- Business
- The Star
Penang defers implementation of new water tariffs to July 2026
GEORGE TOWN: Penang will defer the implementation of new water tariffs to July 1, 2026, says Chow Kon Yeow. The second phase of the Tariff Setting Mechanism (TSM), originally scheduled to take effect today (Aug 1), will be withheld until then to ease the impact on consumers, said the Penang Chief Minister in a statement on Friday. The deferment will benefit 715,957 registered water accounts in the state. Under the revised tariffs, 79.88% of the state's 613,660 domestic accounts – those using up to 35 cubic metres of water a month – would have seen their monthly bills increase by between 30 sen and RM2.55. This also meant 95.38% of Penang's 98,155 non-domestic (commercial) accounts – those using up to 200 cubic metres of water a month – would have faced bill increases of between RM3.60 and RM35.70. The Penang Water Supply Corporation (PBAPP) was expected to collect an additional RM20mil in revenue over six months with the new tariffs in force.
