GEORGE TOWN – The introduction of a new water tariff rate in Penang, which will come into effect on July 1, 2026, is designed to generate revenue for the Penang Water Supply Corporation (PBAPP). This revenue will be used to improve the state’s water supply system and address rising operational costs, said the utility company’s chief executive Datuk K. Pathmanathan.
In a statement, Pathmanathan explained that the tariff adjustment would result in an average increase of approximately 20 sen for various categories of consumers, including domestic users, non-domestic users, bulk-metered households, places of worship, welfare organisations, shipping, and data centres.
The new rate is expected to raise an additional RM20 million in revenue over a six-month period next year.
This increased revenue will help PBAPP tackle key water supply challenges across Penang, including enhancing water supply efficiency in Seberang Perai Tengah and Seberang Perai Selatan districts, improving the distribution of treated water from the Sg Dua water treatment plant (WTP) on the mainland to Penang island, and increasing pumping capacity to boost water supply in the Southwest District on the island.
The funds will also address non-revenue water (NRW) issues, which have been a growing concern.
Pathmanathan further outlined that the additional revenue would support several crucial projects under the Water Contingency Plan (WCP) 2030, such as the construction of the Mengkuang Park WTP, Sg Kerian WTP, and a compact WTP in Sg Kerian.
Furthermore, efforts to reduce NRW would include replacing water meters, installing smart meters, and upgrading main pipes and valves.
“The additional revenue will also help cover PBAPP’s growing operating costs, including service support and electricity expenses,” he added.
PBAPP’s statement followed the state government’s decision to defer the implementation of the water tariff adjustment under the Tariff Setting Mechanism for the Second Implementation. Originally set to take effect on August 1, the adjustment has now been postponed to July 1, 2026.
Chief Minister Chow Kon Yeow noted that this deferment would benefit 715,957 water consumers in Penang. – August 2, 2025