BUTTERWORTH, July 17, 2026 – Penang will not postpone the implementation of the new water tariff that took effect on July 1, despite appeals for a delay, said Chief Minister Chow Kon Yeow. He explained the decision had already been deferred for nearly a year, even though the tariff structure set by the National Water Services Commission (SPAN) was scheduled for enforcement in July 2025.
Water Tariff
Chow said the new tariff is expected to generate RM20 million annually, crucial for financing projects by the Penang Water Supply Corporation (PBAPP), which requires nearly RM2 billion in capital expenditure for water security. Domestic consumers will continue to pay below production costs, cross-subsidised by industrial and commercial users.
PBAPP CEO Datuk K. Pathmanathan stressed the additional revenue is vital for the Water Contingency Plan 2030, including new treatment plants and pipeline upgrades. He noted 82% of households will see only minimal increases.
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