A study is under way in Penang to determine if there is a need to impose higher water tariffs, given the increasing wastage of the resource as well as a drought.

Chief Minister Lim Guan Eng told a press conference today that measures by the state government and the Penang Water Supply Corporation (PBAPP) to conserve water have "not been successful".

The "soft approach" taken thus far had involved education of consumers in place of implementing a water conservation surcharge that would impose a penalty for water wastage.    

“The NGOs attacked us for not wanting to raise the water tariff. They said (we should take) a hard approach. I (felt they had) a strong point, so (we tried) educating the public but this soft approach has failed,” he said.

"As such the state executive council decided at our meeting this morning that, while we will not impose water rationing this month, we will accept PBAPP's request to actively study increasing the water tariffs in order to reduce consumption.”

PBAPP already has several business models and will not have to start the study from scratch, Lim said.

He also noted that the findings of the study will have to be submitted to the National Water Supply Commission for its approval to raise water tariffs.

Lim declined to divulge the rate of increase that is being considered or when the decision will be made.

"Even with the increase, we will still have the cheapest water in the country," he said.    

Penang's water tariff is 31 sen for the first 35,000 liters per month, compared to the national average of 66 sen.

"However, we have the highest domestic water consumption rate of 311 l/c/d (litre capita per day), while the national average is 212 l/c/d. When I say we want Penang to lead, I did not mean it to be this way,” he said tongue-in-cheek.

Lim said the PBAPP’s efficient management of water supply has enabled the state to avoid water rationing this month.

"But (if there is a need), we will implement a contingency action plan to avoid water rationing by upgrading our existing efficient supply management and implementing water demand management measures," he added.

The likelihood of rationing follows Perak’s decision to impose the exercise this month due to the drought.