Good news for Penang folks. The state government today announced that it will not increase the water tariff in the state, which will remain the same until 2010.

However, the state government will also not emulate the Selangor government by supplying free water for consumers.

Chief Minister Lim Guan Eng however cautioned that although state water supplier Penang Water Supply Corporation (PBAPP) had no immediate plans to increase the tariff, it would do so if its operation cost started to ache.

lim guan eng interview 290408 07 "We would shelve it (any increase) for the next two years. But if its operations, especially the wastage of water, is found to be too costly, then we would consider a tariff hike in three years time," said Lim, who is also the PBAPP board chairperson.

Lim also said that since Penang offered the cheapest water tariff in the country, it would not be necessary for it to follow suit the free water policy of its Pakatan Rakyat counterpart in Selangor.

The Selangor state government will give away for free the first 20 cubic metres of water, worth RM11.40, to consumers beginning this Monday.

"Water is not so much an issue for Penangites now. So we would not touch on it now," Lim said.

PBAPP was corporatised in 1999 to serve as Penang's water supply company, operating with a licence issued by the Penang state government.

In 2001, PBAPP became a wholly owned subsidiary of PBA Holdings Bhd (PBAHB).

Although it has water dams in Mengkuang, Teluk Bahang and Air Itam, its main source of water, 80 per cent of it, comes from Kuala Muda river.

PBAPP supplied 865 million litres of treated water daily across Penang in 2007.

In the same period, Penangites consumed 719 million litres of water and wasted 147.05 million litres daily.