State govt plans to impose new water tariffs for households, says Penang CM

BUTTERWORTH: The state government is planning to impose a new water tariff for households in the state.

Chief Minister Chow Kon Yeow said the state administration would submit an application to the Federal Government to increase the water tariff for households.

"The state needs to impose a new water tariff as other states have begun to do it," he said after launching the state’s Affordable Housing and Real Estate Expo 2023 at Butterworth Arena, here on Saturday (Dec 23).

Chow said Penang currently imposed the same tariff rate since 2015 and introduced a new tariff for non-domestic, or commercial, users last year.

He said a business plan needs to be submitted to the federal authorities every three years on the estimated tariff rate that would be implemented.

He said the water supplied in the state currently was heavily subsidised.

"The Penang Water Supply Corporation (PBAPP) has spent more than RM1 to treat every 1,000 litres of water but only sells them at around RM0.30 per litre," he said.

He said the state government has spent more than RM100mil per year despite not having increased the (water) tariff.

He said the matter (to increase the new water tariff) will be announced to the public soon.

On the water disruptions that were caused by burst pipes at Prai River on Dec 18, Chow said consumers in several parts of the southwest district of Penang island such as in Balik Pulau are still in need of water tankers.

He however said the supply in the district is expected to be restored on Saturday (Dec 23).

Earlier, the chief minister announced an extension of the Home Ownership Campaign (HOC) by the state government until Dec 31, 2024.

He said this initiative is designed to meet the state government's goal of providing 220,000 affordable homes to Penang residents by 2030.

Under this campaign, buyers will enjoy a 10% discount for affordable housing projects priced at RM300,000 on Penang Island and RM250,000 on the mainland.