Why did Penang double water conservation charges instead of raising tariffs?

Question

Accepted Answer

Penang Doubled Water Conservation Charges Amidst Proposed Tariff Increases

The Penang state government doubled its water conservation charge as an alternative to implementing previously proposed tariff increases for consumers and businesses. This move followed an application to federal authorities in December for approval to raise water tariffs by 77 per cent for consumers and 58 per cent for businesses, with the proposed effective date of April 1.
Proposed Tariff Hikes and Federal Application

Penang had sought federal approval to implement significant hikes in water tariffs. Specifically, the state government applied in December to increase rates for consumers by 77 per cent and for businesses by 58 per cent, aiming for an April 1 implementation. This application was made to federal authorities for the necessary permissions.
Political Motivations for Charge Increase

Instead of proceeding with the broader tariff increases, the state government opted to double the water conservation charge. A strategic media team from Barisan Nasional (BN) suggested that this decision was influenced by political considerations. The BN team further posited that the doubled conservation charge was insufficient to adequately fund the operations of the Penang Water Supply Corporation (PBAPP).
Concerns Over Future Tariff Revisions

There is an expressed concern that the Penang state government might reintroduce the previously proposed, substantial water rate increases following the 14th general election. This potential revival of higher tariffs is seen as a measure to address financial shortfalls at PBAPP, particularly in light of a reported 500 per cent increase in the state government's debt since 2008 and limited state land available for sale.

Reading history

Hide →

This history is cleared when the page is closed.

Why did Penang double water conservation charges instead of raising tariffs?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends