Penang to Implement New Water Tariffs from July 1

Penang's water tariff rates will increase starting July 1, after a year-long postponement. The new rates, approved by the federal government last year, will see an 8.5% rise for domestic users and a 7.3% increase for non-domestic users.

State executive councilor Zairil Khir Johari explained that the impact on most domestic households would be minimal. Approximately 82% of Penang households use 35 cubic meters of water or less monthly. These households will face a maximum bill increase of RM2.55 per month, equivalent to about 8.5 sen daily. For instance, a domestic user consuming 35 cubic meters will pay RM32.50, up from RM29.95.

For non-domestic users, including factories, hotels, and government offices, the maximum bill increase for consumption up to 500 cubic meters per month will be RM77.70, or RM2.59 per day. Such users will pay RM1,141.70, compared to RM1,064 previously, with the average rate for the first 500 cubic meters set at RM2.28 per cubic meter.

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Domestic users who use 35m³ of water per month will pay RM32.50 compared to RM29.95 previously, while the increase will be lower for users who consume less than the amount.

The tariff adjustment is expected to generate an additional RM20 million in revenue for the state in the latter half of the year. PBAPP plans to reinvest a significant portion of this revenue into developing water supply infrastructure. The increases are deemed necessary to maintain service quality, fund critical projects under the Water Contingency Plan 2030, cover rising operational costs, and promote water conservation.

Penang's per capita domestic water consumption was 267 liters per day last year, exceeding the national average of 225 liters and Singapore's 141 liters. The state aims to reduce this to 250 liters per capita daily this year to manage limited water resources effectively.

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The implementation of the new rates is expected to generate approximately RM20 million in additional revenue in the last six months of the year, with a significant portion of the profits to be reinvested in water supply infrastructure development for the benefit of the people and Penang's development.