STAR, March 30, 2009
By SIM LEOI LEOI
PETALING JAYA: Selangor has promised to challenge any decision by the federal government to increase its water tariff come Wednesday.
Selangor water review panel member Charles Santiago said this was because any tariff increase needed the state government’s consent.
“The state government is a party to the concessionaire agreements signed with the water companies.
“Although the federal government has the golden share, it will still need our consent if it plans to implement the increase.
“The state government is prepared to challenge the decision in court,” he said Monday.
Asked if Selangor would ask the federal government to defer any tariff increase, set to come into effect on Wednesday under the terms of the original concessionaire, Santiago said there was no need for any postponement.
“We have already given the federal government an offer. Why don’t they look at it?” he asked.
Selangor had earlier proposed to the federal government that the concession with the water companies be terminated as some of the firms had violated their agreements and let the state take over the assets.
However, the federal government had told Selangor that it was not in the position to terminate the agreements.
Santiago was commenting on a statement by Energy, Water and Communications Minister by Datuk Shaziman Abu Mansor that it would put forward a Cabinet paper on the matter of water tariff increase this Wednesday.
Selangor must undertake a water restructuring exercise by Tuesday, failing which tariffs will rise by 37% for 1.5mil consumers in Selangor, Putrajaya and the Federal Territory under the orginal concessionaire agreement.
However, if there is any increase, it should be around 31%, as suggested by the Auditor-General Department.
The federal government had earlier deferred the increase, which was supposed to have taken effect on Jan 1.
It had also written to Selangor, informing it of the increase this Wednesday as well as for the compensation to be paid for the three-month deferment from Dec 31.
“Selangor has responded to the letter where we told the federal government that our original proposal stands,” said Santiago.
When contacted, a senior official with the Selangor Mentri Besar Tan Sri Khalid Ibrahim said he would issue a statement on the matter either Tuesday or Wednesday as the latter was still in Sarawak for the Batang Ai by-election.
“Selangor will disagree with any tariff increase. This shouldn’t have happened and we have a legal basis for our views,” said the official.
Forum Air Malaysia secretary Piara Pakaran Subramaniam said that, with just a day to go before the increase, none of the consumer groups in its coalition had been briefed on the progress or whether consumers would be spared the tariff increase.
“Whatever it is, we want the tariff increase put off until the matter of the takeover of Selangor water assets has been resolved as now will not be a good time to raise the rates.
“There should also not be any disruption to the water supply to consumers. We want the federal government to step in and postpone the increase,” he said, calling for federal and the state governments to put aside their political differences to discuss the matter.
When contacted, a spokesman at the National Water Services Commission asked for queries to be directed to the Energy, Water and Communications Ministry.
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