The Barisan Nasional strategic communications team has challenged the Penang state government to pledge that it will not raise water tariffs if it succeeds in retaining the state in the 14th general election.

In a statement, the team cited a purported request by the state for approval from federal authorities last December, following its alleged decision to raise water tariffs for consumers by 77 percent and 58 percent for businesses.

“We call on the Penang state government to confirm or deny that there was such a decision by the Penang exco for a broad-based increase in water rates in October 2016,” it said in a statement.

The team further claimed that the state’s request was made despite having already raised water rates four times between 2008 and 2016.

This was also on top of the chief minister’s office providing a RM30 million emergency loan to the Penang Water Supply Corporation (PBAPP) last year, it said.

“One of the main reasons given to justify this increase was that PBAPP's spending had greatly increased and that without this broad-based water rates hike, PBAPP is projected to lose money.

“This proposed increase in rates would see the Penang government increase its revenue by an additional RM150 million per year from higher water charges imposed on Penang households and businesses,” said the team.

Among others, it estimated that the monthly water bill for the average factory in Penang would increase by RM88,000 - a 45 percent hike from RM196,000 to RM284,000.

The monthly water bill for a five-star hotel, on the other hand, would supposedly increase by RM22,000 from RM48,000 to RM70,000.

The new rates were supposed to take effect in April, but the state withdrew the plan and doubled its water conservation charge instead. The BN team suggested that this was a political move which would be insufficient to fund PBAPP.

“There is a concern that after the 14th general election, the Penang state government will revive the earlier broad-based water rates increase to avoid losses at PBAPP,” it said.

It also said its concerns were justifiable given an alleged 500 percent increase in the state government's expenditures since 2008, and a reported admission by a Penang exco member that there was only limited state land still available for sale.

BN has had its sights trained on the Penang government’s expenditures, with chief minister Lim Guan Eng rubbishing claims by Penang Umno Youth chief Rafizal Abd Rahim yesterday that water surcharges from PBAPP would go directly into the account of the chief minister’s office.