Will the proposed water tariff hike affect the hardcore poor?

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The Proposed Water Tariff Hike Will Not Affect the Hardcore Poor

The proposed water tariff rate hike in Penang will not impact the hardcore poor, as they are already provided with free water by the Penang Water Supply Corporation (PBAPP). This provision covers their water usage up to 60,000 litres per month, ensuring their essential needs are met without incurring additional costs from the tariff review.
Free Water Provision for the Hardcore Poor

PBAPP currently supplies free water to the hardcore poor, a measure that remains unaffected by the proposed tariff adjustments. This existing support mechanism ensures that the most vulnerable segment of the population will not face increased expenses related to their water consumption.
Context of the Tariff Review

The proposed water tariff rate hike is part of a broader strategy by the Penang government to curb high water consumption rates within the state. This initiative has been undertaken following sustained pressure from both the National Water Services Commission (SPAN) and the federal government, which have urged for reduced water usage and increased tariff rates.
Historical Water Consumption Trends and Surcharges

Penang has seen a reduction in per capita water consumption, dropping from a high of 291 litres per day in 2010 to 276 litres per day in 2017. To further encourage conservation, a water conservation surcharge (WCS) was introduced and later reviewed in 2013. This surcharge applies to consumption exceeding 35,000 litres per month, affecting approximately 23 per cent of domestic consumers.
Previous Tariff Adjustments

The domestic water tariff rate was last reviewed in 2015, with an increase from 22 sen per 1,000 litres for the initial 20,000 litres to 32 sen per 1,000 litres for the first 35,000 litres. The current proposed review, pending SPAN's approval, suggests a potential increase of 10 to 20 per cent over existing rates.

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Will the proposed water tariff hike affect the hardcore poor?

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