First of all, let me state that I am a (very, very) minority shareholder in Puncak Niaga Holdings Bhd but I am in no other way associated with them.

In response to your report titled Stop water tariff hike in Selangor , I feet compelled to share my views on this matter as I am from the camp that believes that future wars will be fought over scarce water. Also, I am sure a vast majority believes that the water industry in Selangor is in need of a drastic infrastructure upgrade and revamp. I don't know about others but the current projections of demand growth and anticipated water shortages projected for 2007 and 2008 in Selangor really scares me.

Malaysians, like most Asians on a global basis, use a lot more water per capita than most other countries, especially the developed countries. Some figures put us Malaysians as using twice as much water than certain developed countries. This is shameful.

Therefore, water rates beyond the initial 20 cubic metres must rise to promote prudent use of water. The pending tariff revision proposal ensures that there is no increase for the initial 20 cubic metres. The average person will be minimally impacted while the golf clubs who waste millions of gallons watering their courses will bear the brunt of it.

No matter how you cut it, the public sector (read the Selangor state government) has performed poorly in running the water business over the past 50 years to the extent that it was losing RM800 million a year before it was privatised. In fact, the state government owed and continues to owe Puncak Niaga hundreds of millions of ringgit. At one point, Puncak Niaga was owed as much as a staggering RM1.14 billion (Puncak Niaga's annual report 2003).

As for the RM1 million plus salary the chairman is getting, it has always been thereabouts for years before the privatisation of water distribution. It is on par with most large conglomerates in Malaysia. In fact, the stock market has valued the privatised water distribution concession which Puncak Niaga obtained at a grand total of RM0.00 (Puncak Niaga's share price has not improved since water supply privatisation) believing it to be a fiscally and politically problematic business.

CAWP coordinator Charles Santiago said that '... it would have been impossible for Syabas to have reduced non-revenue water (NRW) when there was a stay order barring it from carrying out related work until 2009'.

This is a disappointing statement to make. First of all, the injunction which was obtained in July 2005 was granted a stay of execution shortly afterwards. Also reducing NRW is just not about replacing rusty or leaking underground pipes en masse. Other ways include stopping water theft, replacing inaccurate or faulty water meters and also responding to and repairing burst water mains in the shortest possible time - which Syabas has done in earnest this past year. These three items constitute a big part of NRW calculations.

Frankly, I am quite annoyed at Santiago's lack of research on this. As CAWP coordinator, he should know better. I do not know whether the published NRW is accurate or not but if, as stated, it is audited by the national auditor then I am sure there is some basis.

I am also sure that those staying in Petaling Jaya, Taman Tun Dr Ismail and in Damansara in the Klang Valley would have noticed that there has been significant pipe replacement work since May 2005. According to estimates 13,500km and 6,000km of pipes need to be replaced immediately.

And what about the water meters? Syabas has estimated that a staggering RM11.7 billion will need to be invested in the near future for upgrading works. Do you really want the state government to take back control of this? I would have though that after 50 years of continued poor performance, we would be glad for a change and for a chance to enjoy a clean and reliable water utility.

If you really believe this is a sweetheart deal for Puncak Niaga, then why don't you (like me) invest in their shares? If you are one of those affected by the tariff hikes of (most likely) less than 15 percent because you use more than the 20 cubic metres per month, ask yourself how much is your bill for this life-giving substance as a percentage of your budget. Then ask yourself if it is easier to use 15 percent less water instead. Your wallet, the environment and your future generations will thank you for it.