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NEW PENANG WATER SURCHAGE IS STILL BELOW COST OF PRODUCTION AND TOO LOW TO DETER WATER WASTAGE

NEW PENANG WATER SURCHAGE IS STILL BELOW COST OF PRODUCTION AND TOO LOW TO DETER WATER WASTAGE

 

It was reported in The Star on Thursday September 23, 2010 that the Penang Government will impose a surcharge of 24 sen per 1,000 litres of water used on domestic consumers using more than 35,000 litres of water per month. This Water Conservation Surcharge will be effective from November 1, and is expected to affect about 30% of domestic users. Penangites should not complain as the surcharge of 24 sen/1,000 litres is reasonable as it is still below the subsidised amount of 34 sen/1000 litres (The cost of production is 65 sen/1000 litres but the average water tariff for domestic consumers in Penang is only 31 sen/1000 litres). While such a bold move is laudable, it is certainly not enough to deter water wastage in a state where the majority of the populace is of the affordable middle class. The surcharge sounds good on paper but it is too low and will not be effective in discouraging Penangites from wasting water. See this example: If family X uses 100,000 litres per month (a large amount of water by any standard), the surcharge will only be RM15.60. This amount will not even be a deterrent to families with an average income of RM1000.00 as it represents only 1.56% of the monthly income. I think if the Penang Government is really serious about making Penangites save water, the surcharge should be raised to RM1.00 per 1,000 litres, and this family X will pay RM65.00 which would then be an effective deterrent. People who say such a surcharge is too high should consider that fact that a family's average telephone bill (including hand phone bills) in Penang is about RM300.00 (Water Watch Penang Survey in 2008). If people can pay RM300.00 for telephone (no one will die if there is no telephone!), then a surcharge of RM65.00 is reasonable to pay for water as one will surely die if one has no water for just a few days! The good thing about the surcharge is that the government has the poor in mind as the poor would not be deprived of water if they use water wisely up to 35,000 litres per family per month. Only water wasters using more than 35,000 litres will be hit.

 

Prof Dr Chan Ngai Weng

President, Water Watch Penang

(nwchan1@yahoo.com)

 

The Star, Thursday September 23, 2010

Extra charge for Penangites who use excessive water

By ZALINAH NOORDIN
zalinah@thestar.com.my

 GEORGE TOWN: Penang will impose a surcharge of 24 sen per 1,000 litres on domestic consumers using more than 35,000 litres of water per month.The Water Conservation Surcharge, from Nov 1, is expected to affect 30% of domestic users, Chief Minister Lim Guan Eng said.“The move will help to reduce our state’s average daily water usage per household from 286 litres a day to 233 litres a day,” he said at a press conference here yesterday.He added that Penang was the first state in the country to impose the surcharge to motivate the people to reduce water usage and wastage.Lim, also Penang Water Supply Corporation Sdn Bhd (PBAPP) chairman, said piped water was supplied at below cost to 80% of its domestic consumers in Penang.“In 2009, a total of 395,388 domestic consumers enjoyed water subsidies which cost PBAPP some RM41mil,” he said.He stressed that only those who used excessive water would be affected by the surcharge.“If you use too much water, you pay, that is only fair,” he said.Lim added that Penang’s water tariff, which was the lowest in Malaysia and Asean, was last reviewed nine years ago.He also said the surcharge had to be introduced as the average daily water usage of 286 litres per household was above the national average of 205 litres.Federation of Malaysia Consumer Asso­ciations vice-president K. Koris described the surcharge as a “very good move’’.He said Malaysia was the only place in the world where people used treated water to wash their cars and water the plants.“It’s ridiculous that a family pays more for their handphone bills than they do for water. In India, people suffer because there is a lack of treated water, but here, people are wasting water,’’ he said.Consumers Association of Penang president S.M. Idris said the association had always been in favour of imposing extra charges for those who use water excessively.  

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