He said the increase in water price was inevitable, adding however that water tariffs in the state would remain “the lowest in the country” even after the revision.

He declined to reveal the amount by which the price of water would increase, saying “open ended” talks with the federal government were ongoing.

However, he said the increase could be between 10% and 20%, or “more than 20%” across selected or all bands. He added that no decision had been made on the percentage of increase.

Once the price is raised, he said, the penalty for wasting water – the Water Conservation Surcharge – would be removed.

“Talks over the revision of tariffs have been ongoing for many years now. We are waiting for the relevant federal authorities to get back to us on the proposal.

“It will go up, but we do not know by how much,” he said in a press conference at Komtar today.

Last night, Water, Land and Natural Resources Minister Xavier Jayakumar said the water price should be revised upwards to “protect” consumers’ interests and ensure that the industry’s services continued.

Penang uses the highest volume of water in the country. In 2017, it used 276 litres/capita/day (l/c/d), compared with the national average of 209 l/c/d.

Comparatively, Singapore recorded 143 l/c/d in 2017. The United Nations recommendation is 148 l/c/d.

The Water Conservation Surcharge sees those who use more than 35,000 litres per month charged 48 sen for every additional 1,000 litres. Households with more than eight people are entitled to a 60% rebate on the surcharge.

The surcharge is applicable to 25% of 589,797 domestic users, which comes up to about 135,000 users.

Penang’s water price of 32 sen per 1,000 litres remains the lowest in the country, compared with the national average of 69 sen. Johor, in comparison, charges RM1.31 per 1,000 litres.

The maximum water bill for 77% of households in Penang is only RM11.30 per month or RM22.60 per two-month billing cycle.