
On Nov 1, natural resources, environment and climate change minister Nik Nazmi Nik Ahmad had said a Cabinet paper proposing a new method for water tariff determination was in the works.
This will enable state-level water operators to decide their tariffs independently, Nik Nazmi told the Dewan Rakyat.
Following this, Cha Kee Chin (PH-Rasah) said that decisions to permit state-level water operators to adjust water tariffs were always made by the National Water Services Commission (SPAN) or the Cabinet, a system he said should remain in place.
“Permitting state-level water operators to set their tariffs autonomously could lead to an increase in inflation.
“Although the current inflation rate stands at a modest 1.9%, a low not seen in two years, the populace is still grappling with high living costs and expensive commodities,” Cha told the Dewan Rakyat.
He said the government should avoid increasing the water tariff “at least” for the next four years.
“The government should communicate clearly to state water operators not to raise tariffs.
“This is to protect all citizens, including those from lower and middle-income groups, from the burden of additional expenses,” said Cha.