KOTA SAMARAHAN: The Energy Transition and Water Transformation Ministry is still considering alternative business models for water management to reduce losses from non-revenue water (NRW), says Datuk Seri Fadillah Yusof.
The Deputy Prime Minister said this was being studied in detail by the National Water Services Commission (SPAN) and state utility companies.
"We have looked at various business models but a final decision has not been made yet.
"We also need to get agreement from state governments. They are the main stakeholders as most utility companies are owned by state governments," he told reporters after witnessing the handover of flood mitigation projects at Masjid Darul Malihah, Kampung Bukit Berangan, here on Monday (April 13).
Fadillah said it was important to look at the NRW issue holistically, including the tariffs to be imposed under the new business model.
"Ultimately, the tariffs will be paid by the people, so this is something we need to consider carefully," he said.
Fadillah said the national NRW rate averaged 38.4%, although it was higher in some states.
For states with an NRW rate above 40%, he said the Federal Government allocated grants for replacing old pipes and improving water distribution systems.
"As for states whose NRW rate is below 40%, they will invest first in their water infrastructure and the f0ederal government will provide matching grants once the projects are completed, based on the amount of savings they achieve," he said.
