Water tariffs set to increase - Air Selangor

SHAH ALAM - Plans are underway to increase water tariffs this year in order to ensure a sustainable water supply for all domestic users.

According to the Pengurusan Air Selangor Sdn Bhd (Air Selangor) acting CEO, Abas Abdullah, the tariff adjustment is necessary to maintain a balance between income and expenditures through careful planning and effective implementation.

In 2022, Air Selangor made significant strides in integrating sustainability into its governance, financing, and business operations.

Abas highlighted that the increase in revenue in the previous year was a result of the economic recovery following Covid-19 restrictions and tariff adjustments.

"Air Selangor recorded an income of RM2.45 billion in 2022, a 12.38 per cent increase from the previous year's RM2.18 billion.

"However, this increase is insufficient to cover operational costs and capital expenditure, which will eventually impact the long-term operations of Air Selangor.

"After 17 years without any increment, it is now time to review and raise the domestic water tariffs at a reasonable rate," he told Harian Metro.

The tariffs play a crucial role in ensuring that Air Selangor does not bear the full burden of operational costs and capital expenditures, particularly those associated with water infrastructure.

Abas reportedly disclosed that he had held discussions with the National Water Services Commission (SPAN), and they are anticipating a decision by the end of the year.

He also stressed that SPAN has the authority to determine the tariff increase, and Air Selangor is hopeful for a gradual increment to sustain the operations of water supply and management projects for the benefit of users.