KUALA LUMPUR – The Natural Resources, Environment and Climate Change Ministry (NRECC) will table its proposal to introduce a water tariff setting mechanism to the cabinet.
Its minister, Nik Nazmi Nik Ahmad (Setiawangsa-PH), told Dewan Rakyat today the proposal will include a mechanism that allows water operators to adjust tariffs without ministerial approval.
He, however, said the mechanism would also protect consumers of all income groups.
“We have organised a series of engagements and there are similar views from state governments where the current water issues are tariff related.
“There are those who haven’t increased their tariff in the last 40 years, especially when the previous government allowed the increase in tariff for the non-domestic sector.
“However, we need to (increase tariff) as there are many states with fast-growing industries or commercial sectors. Therefore, the tariff setting mechanism paperwork will be presented in cabinet.”
It was previously reported on May 30 that the ministry is mulling proposing review of water tariff to provide return on capital that will commensurate operational costs. – November 1, 2023