CAP president Mohideen Abdul Kader said this would ensure that only the poor and needy benefit but not the rich.
“By giving every household 10,000 litres of water for free every month over six months, even the rich man with a swimming pool and many cars will benefit,” he told FMT.
“What we should do is penalise those who waste water,” he added.
Mohideen was responding to an announcement on Thursday that every household in Penang would receive 10,000 litres (10 cubic metres) of water for free every month from July to December.
The government said it will also extend an existing rebate for larger households to help them adjust to the raised water tariffs.
The concession came in the wake of opposition to the increase in water tariffs.
Several assemblymen, including those from Pakatan Harapan, had expressed their opposition to the sharp increase in water tariffs for all domestic consumers, which was implemented in February.
Prior to the increase, Penang had the lowest water tariff in the country, with most residential users paying an average of only RM5.55 a month.
Mohideen said the state government should not have succumbed to pressure to reverse its decision to raise the tariffs.
“Policies should not change. That is the problem with our country. Whenever there’s political pressure, we abandon our policies,” he added.
Mohideen said that rather than kowtow to politicians with vested interests, the government should be bold enough to implement its policies even if it affects those interests.
Penangites are also the largest consumers of water, with each individual using up to 300 litres per day compared with the national average of 237 litres.
The globally recommended quantity is 165 litres per capita per day.
Water studies professor at Universiti Sains Malaysia Chan Ngai Weng said that while the rebate will bring relief for consumers, it will also result in a significant loss of revenue for the Penang Water Supply Corporation (PBAPP).
Chan, who is also president of Water Watch Penang, urged Penangites to have greater appreciation for the resource.
“Consumers must not see (free water) as a right. The cost of treating and delivering water must be covered,” he told FMT.
He said consumers should not expect free water next year. Instead, he said, they should adapt to the new tariffs.
With the increase, the first 20 cubic metres (first band) of water now costs 62 sen, up 182% from 22 sen.
The price for the next 15 cubic metres beyond the first 20 cubic metres (second band) rises 154% from 46 sen to RM1.17. Subsequent amounts (third band) cost RM2.07 per cubic metre.
These new tariffs are expected to generate an additional RM86 million this year to fund critical water infrastructure projects in Penang.
These include a new Sungai Perai river-crossing pipeline and other projects aimed at ensuring sufficient water supply until 2030.
The increase in tariffs was a departure from an earlier announcement by PBAPP that it would spend RM78 million annually on water subsidy.