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Air Selangor seeking water tariff hike

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Acting Air Selangor CEO Abas Abdullah says the tariff review was discussed with the National Water Services Commission (SPAN).

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Free Malaysia Today
Air Selangor said the RM2.45 billion in revenue recorded last year was insufficient to cover its operational costs and capital expenditure.

PETALING JAYA:
Air Selangor hopes the government will review water tariffs for its over 9.1 million Klang Valley consumers this year.

Acting Air Selangor CEO Abas Abdullah said that while the water operator recorded RM2.45 billion in revenue last year, it was insufficient to cover operational costs and capital expenditure.

“… (this) will impact Air Selangor’s long-term operations,” he said in a Harian Metro report.

“Therefore, it is time to review and raise domestic water tariffs at a reasonable rate after 17 years without any increases,” he said during the release of Air Selangor’s sustainability report.

Abas said the review was discussed with water regulator National Water Services Commission (SPAN) and he hoped a decision will be reached by the end of this year.

He added that a higher tariff rate would help Air Selangor accommodate the necessary increases in operational costs and capital expenditures, especially with regards to the company’s infrastructure.

“Air Selangor does not receive any subsidies. We hope that water tariffs can be gradually increased, at least once every three years, to ensure continued sustainable water supply for the benefit of consumers,” said Abas.

In a statement, Air Selangor said it had recorded various achievements through its 2022 sustainability initiatives such as a slightly lower non-revenue water (NRW) rate at 27.76% (a 0.23 percentage point decrease from 2021).

It also said it has achieved an average water reserve margin of 12.02%, which is expected to increase to 17.7% by 2030.

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