Penangites are assured of no water cuts or disruptions during the El Nino global phenomena, expected to hit Malaysia late June to early July.

However, although Chief Minister Lim Guan Eng said the state is quite confident there would be no water rationing, he could not guarantee there will not problems at all.

Nevertheless, Lim (left) , who is the Penang Water Supply Corporation (PBAPP) chairman, reiterated his warning that "heads will roll" in PBAPP if the state is forced to impose water rationing.

"The state has done everything PBAPP has asked us to do to ensure no water rationing. We call them all the time to provide the state executive council reports on the current water situation," Lim said after chairing the corporation's annual general meeting today.

"So since the state keeps up to the requests by PBAPP, they must also keep up to their part of no water rationing.

"Water ration is out of the equation, and if we have to do it, I still repeat, that heads will roll".

Lim’s warning comes as Klang Valley residents face water cuts due to the low supply, despite the Selangor government’s assurance of no water rationing during the dry spell.

Desalination a future option

In an immediate response, PBAPP Jaseni Maidinsa said water levels at the dams are at a "healthy level".

The current effective water supply capacities for the dams are 87.6 percent or 86 days in Air Itam Dam 87.6, Teluk Bahang 54.2 percent (165 days) and Mengkuang Dam 35 percent (58 days), Jaseni reported.

Meanwhile, water level at the Sungai Muda, which supplies 80 percent of Penang water needs is at 2.2 meter, a mere 0.2 meter above the alert level which is two meters.

Jaseni said that Lim's warning is a challenge to the PBAPP to ensure the state's water demand and supply measures remain manageable.

He also cautioned that Penang may someday have to look at desalination as a measure to ensure enough supply of raw water.

"We are a water stressed state like Singapore and if there is not enough raw water, we inform the state to look at desalination as Penang is surrounded by sea water," he explained.

On the demand side, he said the PBAPP had advised the state to increase water tariffs to educate the public on how to value water.

"It's an unpopular decision but the state has agreed. We can see how people have reacted but education of the public has to continue," Jaseni (right) added.

On the implementation of water tariff hike , Lim said PBAPP is still awaiting the approval from the National Water Services Commission (SPAN) for the proposal the state submitted on Apr 30.

PBAPP's key performance indicators in 2013 were well above average compared to national statistics reported in the Malaysia Water Industry Guide.

In terms of profitability, PBAPP tabled a profit after tax of RM27.93 million last year.