State governments must demand for guaranteed cheaper rates, and better quality and supply of water before they agree to the Water Services Industry and National Water Services Commission bills.

DAP secretary-general Lim Guan Eng said the privatisation or federalisation plan may as well be scrapped for good if consumers face higher rates following the passing of the two draft bills.

"State governments must realise that they are surrendering an important state power which has been their sole prerogative such as economic (licensing), technical and social regulations, and consumer protection."

By surrendering this power, he said, states should realise the expected improvements in costs, quality and guaranteed supply of water services.

"Without cheaper rates, improved water quality and guaranteed supply, what (do state governments and consumers gain) in allowing the federal government to take over the services?" he posed.

Annouce at right time

Yesterday , Energy, Water and Communications Minister Dr Lim Keng Yaik met with consumer groups who wanted the public consultation deadline to be extended from Nov 24 to early next year.

Contacted today, Keng Yaik said there were no new developments following the weekly cabinet meeting earlier and refused to confirm nor deny if the matter was raised.

"It doesn't matter if the deadline is at the end of November or in March next year. I will make the necessary announcement at the right time."

He declined to say more.

Citing Penang, Lim said the state had objected to a federal plan to standardise water tariffs nationwide through the formation of the commission as early as next April.

He claimed that it would be unfair to the states and would adversely affect those that currently imposed low tariffs, adding that Penang had the lowest water tariff compared to the other states.

Compensation

"Water supply in general except for some states are noted for being expensive, dirty and unreliable.

"In fact, certain parts of Malaysia suffer from water shortage and severe water rationing especially in Batu Pahat, Yong Peng and Kluang in Johor where water is available only once every three days."

He said there should be immediate compensation or the sacking of officials for allowing a situation such as a shortage or rationing to arise instead of making consumers pay for non-existent supply.

Based on this, Lim cautioned state governments against giving up their powers over water resources and supply "unless there is a discernible benefit to consumers.

The full text of both bills are available for download as well as for comments and feedback on the ministry's website.