PRESS RELEASE - 09th SEPTEMBER 2014 (TUESDAY)

TRANSPARENT WATER TARIFF SETTING MECHANISM

Since 2011, AWER constantly urged the Federal Government to implement a transparent tariff setting mechanism for water tariff. In early 2013, the Federal Government has finally committed to allow Suruhanjaya Perkhidmatan Air Negara (SPAN) to implementation the transparent tariff setting mechanism as suggested by AWER. Today, AWER has received information from SPAN that preliminary steps to engage all level of stakeholders will be carried out before a final water tariff is decided.

A summary of proposed tariff adjustment and relevant Key Performance Index (KPI) as well as achievement by water services operators will be published by SPAN for all stakeholders including members of public to give their feedback. Water services are inclusive of water treatment, water supply and sewerage services. This would be a preliminary step before the completion of Regulatory Water Accounting (RWA) which will further improve transparency of water services costs and efficient cost benchmarking to improve operating standard of water services industry. Water Services Industry Act 2006 (WSIA) has been enforced beginning 1st January 2008. The step to implement transparent water tariff setting is a positive development by SPAN under the WSIA model.

This is a historic moment where members of public will be directly engaged before tariff is adjusted. AWER urges fellow Malaysians to play active and positive role to give direct feedback to SPAN on services received (for example complaints handling, disruption of supply and water quality) from water operators to assist SPAN to evaluate performance of water operators so that SPAN can set stricter Key Performance Index (KPI) for them.

Piarapakaran S.
President
Association of Water and Energy Research Malaysia (AWER)