Minister Nik Nazmi Nik Ahmad said the federal government was aware that the financial sustainability of water companies played a crucial role in the quality of service delivery.

“We are aware that some states are still using old tariffs that have not been reviewed for more than 20 years. This matter is currently under our review.

“We will ensure that any tariff increase will not burden the less fortunate,” he said at a ground-breaking ceremony for the Rasau water supply scheme in Kampung Seri Cheeding, here today.

Nik Nazmi said Selangor and Johor were the two best states in the management of non-revenue water (NRW), or water lost before it reaches the consumer, with both states recording an NRW rate of less than 30%.

Selangor menteri besar Amirudin Shari said efforts to replace old pipes, control leaks and enhance operational efficiency of water treatment plants had resulted in a reduction of NRW from 36% in 2016 to the current 27.8%.

He added that Selangor was now further aiming to reduce NRW to 25% by 2025.

“We are replacing 150km of leaky or old pipes per year. This is part of the process that started in 2016, involving an overall 30,000km, including a 6,000km stretch of ‘critical’ pipes.

“We have to do this in a planned and organised manner because it involves a high cost,” he said.

Pengurusan Air Selangor Sdn Bhd (Air Selangor), in a statement, said the first phase of the Rasau water supply scheme was expected to be completed in 2025.

This includes 489ha, covering nine former tin mining ponds that function as the country’s first dual-functional riverside reservoir that also serves to prevent floods.

The second stage of the scheme, to begin in 2027, will take three years to complete. Air Selangor said this will cost RM5.54 billion.