KUALA TERENGGANU, Jan 17 — The Terengganu government is confident that the new water tariff adjustment for domestic users in Peninsular Malaysia and the Federal Territory of Labuan starting February 1 can solve various water supply issues faced by the state.

State Infrastructure, Utilities and Rural Development Committee chairman Hanafiah Mat said that his committee and the state water supply operator, Syarikat Air Terengganu (SATU), will utilise the increase for the replacement of old pipes and the building of several new water treatment plants.

"Insya-Allah, water services in Terengganu will improve after this, and I believe this increase will not overly burden domestic users in this state,” he said when contacted by Bernama today.

On January 1, SATU reported that 2,670 user accounts in 11 villages around Kuala Besut experienced unscheduled water supply disruption expected to last for 21 days due to supply disruption involving Tangki Air Bukit Keluang caused by a leak in a 600-millimetre pipe at the bottom of Sungai Besut.

A check on the SATU portal also found that 47 water supply disruption notices were issued by the water company for this month alone, as of today.

Meanwhile, Hanafiah said that although SATU has never applied for a new tariff hike to the relevant ministry or the National Water Services Commission (SPAN), the operator corporatised in 1999 had expressed the intention to submit a comprehensive tariff rate adjustment application after 26 years.

"It aimed to accommodate the high operational and capital expenditure costs to ensure user comfort can be improved.

"SATU spends a total of RM180 million annually for operating costs to abstract, process, and supply treated water to users in Terengganu, including maintenance work involving the repair of broken and leaking pipes and upgrading water supply system works,” he said.

The number of active water user accounts in Terengganu until November 2023 is 341,546, with 83 per cent being domestic users.

Through the Tariff Setting Mechanism, SPAN today announced a new water tariff adjustment for domestic users in Peninsular Malaysia and the Federal Territory of Labuan, involving an average increase of 22 sen per cubic metre.

The adjustment, characterised by SPAN as no longer postponable, aims to ensure the long-term sustainability of the water services industry.

Meanwhile, Deputy Minister of Energy Transition and Public Utilities Akmal Nasrullah Mohd Nasir today was reported as saying said that operator licences under SPAN’s supervision could be revoked if they fail to achieve key performance indicators (KPIs) in providing water supply services as stipulated.

According to him, this follows an expected increase in operator revenue following the water tariff adjustment, and the resulting revenue should be used to improve service quality and solve the main water supply problems in their respective states. — Bernama