Selangor Menteri Besar Abdul Khalid Ibrahim said there would be no change in water tariff until the completion of the water restructure process.

Abdul Khalid said the water concessionaire in Selangor, Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) cannot raise the water tariff although such a hike was agreed to by the federal government.

"Syabas must get the Selangor government's approval before raising the water tariff. But I want to reiterate that Selangor will not allow a hike in tariff before the restructure process is completed.

"So, the people of Selangor need not be worried with any news of increase in water tariff," Abdul Khalid told reporters after chairing a weekly Exco meeting here today when asked to comment on Energy, Green Technology and Water Minister Peter Chin Fah Kui's claim at the National Water and Utilities Summit 2010, that the water sector desperately needed a hike in water tariff.

He said talks on the restructure plan was stalled due to a difference in opinion and alleged that the other party involved was not interested in the welfare of the people.

Abdul Khalid said the Selangor state government was always committed towards resuming talks on the restructure plan but during such discussions, would emphasize on the welfare of consumers, service, efficiency and affordability.

He said the concessionaire had made unreasonable demands of up to 70 percent returns in profit every year for taking over the management of water by the state.

"A holistic approach is needed to ensure water is managed effectively and more efficiently while the tariff must remain reasonable so as not to burden the people," he said.

Water restructuring in Selangor, part of a larger national initiative has been ongoing for more than two years without making any headway due to differences of opinion by the parties involved, namely the Federal Government, Selangor state government and the water players in the state.

- Bernama