The Consumers Association of Penang (CAP) regrets that the Penang state government has consented to a 35 percent rebate on the proposed water rate hike for the construction and renovation sector. This means that instead of the proposed RM3 per 1,000 litres, they will only have to pay RM1.95 per 1,000 litres.

In the end the construction and renovation sector water rate will be increased by only 0.43 sen per 1,000 litres (from the current  RM1.52 to RM1.95), whilst domestic users will pay an extra RM0.50 (from the current RM2.50 to RM3.00) and trade consumers will see an increase of RM2.00 (from the current RM10.00 to RM12.00).

If the primary purpose of the proposed rate increase is to promote water conservation, then the construction and renovation sector should not be given special treatment. This is because water conservation is most effective when practiced by those who use the most water.  

Furthermore the Perbadanan Bekalan Air Pulau Pinang depends on tariffs from businesses to pay for capital expenditure, operating expenses and to subsidise domestic users.

Thus the 35 percent rebate should be retracted to encourage the construction and renovation to practice water conservation and to ensure that the funding of needed water supply projects is not affected.

SM MOHAMED IDRIS is president, Consumers Association of Penang.