There is a need to increase the water tariffs in order for the water operators to provide a better service to consumers, said Energy, Green Technology and Water Ministry secretary-general Loo Took Gee.

She said the water operators ideally needed to have tariffs that could cover not only their operations and services but also additional works, such as changing pipes.

“Currently the water operators do not have enough capital to undertake the necessary old pipe replacement task,” she told reporters after launching the Inaugural ABB-Malaysia Water Association (MWA) Water Colloquium in Kuala Lumpur today.

Loo said currently seven out of 12 states have restructured their water services industry and subscribed to the reform scheme.

“We will discuss with the other five states namely Kelantan, Terengganu, Pahang, Kedah and Perlis for the water tariffs adjustment and the restructuring as no revision has been carried out for the past 20 years.

“Hopefully in the middle of next year, we will come out with the conclusion,” she said.

Asked whether there would be a permanent hike in water tariffs, Loo said the ministry would not fix rate hike as it involves many water operators which are based in each state.

“Unlike energy which involves only one operator, the water services industry involves many operators whereby we must consider their operational costs in each area and the technology that have been used,” she said.

Ealier, in her opening speech, Loo said the biggest challenge of the water services industry is to strike a balance between the sustainability of the water operators and imposing reasonable water tariffs to the consumers.

“With some states having huge liabilities, the balancing act needs other financial considerations and we at the federal level, have to find ways to assist the states in achieving that balance,” she said.

Themed ‘World Class Water Management and Technologies for a Sustainable Future’, the colloquium was attended by about 100 delegates. It sought to discuss the development of water management in Malaysia.

- Bernama