SPAN Announces Water Tariffs Increase For Peninsular Malaysia And Labuan

The National Water Services Commission (SPAN) has announced that the price of treated water will increase by 22 sen per cubic metre (1000 litres). This applies to water supplied to individual households as well.

The increase will come into effect starting from the 1st of February 2024. It will affect Peninsular Malaysia and Labuan.

Tariff increase necessary – SPAN

In a  statement, SPAN stated that the decision to increase the water tariff was made under the Tariff Setting Mechanism, which kept the increase at a reasonable level.

The water regulatory body also pointed out that the increase is still relatively low. Even with the increase, it is not even enough to cover the cost of providing clean water. This currently  costs RM1.75 per cubic metre based on 2022 records.

SPAN also asked state water supply operators to continue providing targeted assistance for users. This is to help minimise the effects of the water tariff increase.

According to SPAN, the water tariff increase is crucial and can no longer be postponed, in order to maintain the sustainability of the water industry.

This is due to the fact that it is important that tariff adjustments reflect the real cost of supplying treated water. It is to ensure that operators are delivering quality water with an acceptable service level.

Experts agree that tariff adjustment is necessary

Although the move to increase water tariff has not been popular with the general public, experts have lauded the move to increase the water tariffs.

S. Piarapakaran, President of the Association of Water and Energy Research Malaysia (AWER), stated that the move will better equip operators to make continuous improvements and investments in developing their water supply infrastructure.

Speaking to Bernama, Piarapakaran pointed out that the tariff increase is not made so the operators can rake in the profits. In fact, water tariff is set by state operators, and it has not been reviewed in a very long time.

Meanwhile, the president of the Malaysian Water Association (MWA), Dr Mohmad Asari Daud expressed his support for SPAN’s decision in a statement, highlighting the importance of a regular tariff review.

According to him, regular tariff reviews are important to reflect the escalating cost of providing clean water.