Chow, who is also the chairman of Penang Water Supply Corporation (PBAPP), said the state would need to impose a new water tariff, as other states have begun doing so.

Penang is currently utilising the domestic (household) tariff rate that had been imposed since 2015, whereas it introduced a new tariff for non-domestic, or commercial, users last year.

According to Chow, the state needs to submit a “business plan” to the federal authorities every three years on the estimated tariff rate that would be implemented.

“The water supplied (to consumers in Penang) is heavily subsidised. PBAPP has spent more than RM1 to treat every 1,000 litres of water but only sells them at around RM0.30 per litre.

“We spend more than RM100 million per year despite not having increased the (water) tariff,” Chow told reporters after launching the state’s Affordable Housing and Real Estate Expo 2023 at Butterworth Arena, here.

On the burst pipe in Sungai Perai on Dec 18, Chow said consumers in several parts of the southwest district of the Penang island, such as Balik Pulau, are still in need of water tankers. Water supply in the district is expected to be restored today.

Penang extends home ownership campaign to next year

Earlier, the chief minister announced that the state government will extend its Home Ownership Campaign (HOC) until December 31, 2024. This is aimed at fulfilling the state government’s target of supplying 220,000 affordable houses to Penangites by 2030.

Under this campaign, dubbed the HOC 3.0 Plus, the state will offer a 10% discount for affordable housing projects (RMM) priced at RM300,000 on Penang island and RM250,000 on the mainland.