Federal government does not determine state water tariffs

Federal government only gives its approval after the study and review conducted by the National Water Services Commission (SPAN).

DEWAN RAKYAT

KUALA LUMPUR: The federal government does not determine the water tariffs of any of the states, the Dewan Rakyat was told yesterday.

Energy, Green Technology and Water Minister Maximus Ongkili said the tariffs were set by the state governments.

He said the federal government only gave the approval after the study and review conducted by the National Water Services Commission (SPAN).

“The right to raise tariffs belongs to the state and the concessionaires. They apply to SPAN when there is a need to raise tariffs. SPAN then conducts a study on the production, cost, profit and so on, and does not merely give its approval upon receiving any application,” he said.

“The statement by Penang Chief Minister Lim Guan Eng that the federal government determines the water tariffs is not true. All concessionaires will have to send their application to SPAN which, after the study, hands over to the federal government,” he said.

Ongkili, who was winding up debate on the Supply Bill 2018 at the committee stage for the ministry, said the application sent to SPAN must have the approval of the state executive council and the relevant resolution must be sent along with the application. -FMT