New water tariffs should cover operational costs of water providers, says Nik Nazmi

BANTING: The Natural Resources, Environment and Climate Change Ministry is considering implementing a proposed review of water tariffs at rates which provide returns that cover operational costs.

Its minister Nik Nazmi Nik Ahmad said the Federal Government is aware that the financial sustainability of water operators plays a crucial role in the quality of water supply services.

"We are aware that some states are still using old tariffs that have never been reviewed for over 20 years and this matter is currently under action.

"We will also ensure that tariff increases will not burden the less fortunate," he said at the groundbreaking ceremony for the Rasau Water Supply Scheme in Kampung Seri Cheeding on Tuesday (May 30).

Also present was Selangor Mentri Besar Datuk Seri Amirudin Shari.

Nik Nazmi added that Selangor and Johor are the two states with the best non-revenue water (NRW) management, which is below 30%.

Meanwhile, Amirudin said the result of pipe replacement efforts, leakage control and operational efficiency of water treatment plants had reduced the NRW from 36% in 2016 to 27.8% currently and is targeting 25% by 2025.

"We are also replacing 150km of pipes per year, a process which started in 2016 involving an overall length of 30,000km, including a 6,000km stretch of critical pipes to be replaced.

"We will do this in a planned and organised manner because it involves economic considerations and high costs," he said.

Pengurusan Air Selangor Sdn Bhd (Air Selangor), in a statement, said the First Phase of the Rasau Water Supply Scheme is expected to be completed in 2025. This includes 489 hectares of nine former tin mining ponds that function as the country's first dual-functional Takungan Air Pinggiran Sungai (TAPS) with water supply capacity and flood mitigation.

The scheme also includes a water service system component involving the construction of the Sungai Rasau water treatment plant and a water supply distribution system with the Klang River abstracted as a new source of raw water supply, contributing 20% of the total water production for Air Selangor in 2030.

The three-year second stage of the Rasau Water Supply Scheme will begin in 2027, with the total cost of the scheme amounting to RM5.54bil. – Bernama