Sewerage bills amounting to RM450 million have yet to be settled by customers, says Indah Water Konsortium Sdn Bhd (IWK).

IWK, the national sewerage company, wholly-owned by the Minister of Finance Incorporated, is urging its customers to settle their arrears to enable the company to provide better services.

"The government is already providing a very high subsidy and there is a need for awareness among the people to assist IWK in carrying out its operations more effectively," said its chief executive officer, Ir Abdul Kadir Mohd Din.

He said IWK's operational cost is increasing annually.

"Although, the service charge imposed by IWK on customers is just 27 cents per day or RM8 monthly, many still fail to settle their arrears, accumulated since 1997," he added.

As such, he said, IWK very much hopes that customers who are benefiting from the sewerage service, settle their bills to also ensure a clean environment, the protection of water sources and public health.

Abdul Kadir however also disclosed that the collection of sewerage charges had increased to 80 percent compared to 30 percent in 1994 following the awareness campaign undertaken by the company.

Company can’t break even

At present, IWK's income is only from the collection of the sewerage charges and this source is insufficient to bear the ever rising operational costs.

Abdul Kadir was speaking after a signing ceremony for the agreement to lease reserve land for the public sewage system between IWK and the Federal Commissioner of Lands here today.

Asked what is an appropriate service charge to be levied on customers by IWK, he said for the company to break even, it should be RM18 per household.

He also disclosed that IWK is working to reduce the government subsidy and was in discussions to raise the service charge.

"Up to September this year, IWK managed and maintained 6,358 public sewage treatment plants including pump stations and a sewerage pipeline network of more than 14,213km," he highlighted.

Meanwhile, the leasing agreement signed today is for the first group of 1,384 sites in all the states and is IWK's initiative towards ensuring a more efficient sewerage service.

The lease is until Dec 31, 2034.

- Bernama