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Friday, 4 April 2014

Water consumption in Penang was the highest in the country?

Last Wednesday, the Chief Minister said the state government had approved the request of the Penang Water Supply Corporation Sdn Bhd (PBAPP) to conduct a study on increasing water tariffs as the last resort to reduce consumption in the state, which was the highest in the country.

Lim added that water consumption in Penang was currently the highest in the country – at 295 litres per person per day last year, followed by Perlis (241 litres), Labuan (240 litres) and Perak (238 litres).

PBA share price up on news Penang plans water tariff hike last week.


Water consumption in Penang was the highest in the country last year and the water level  currently at the Air Itam Dam has not been encouraging.
 Air Itam Dam
 
But the question is how they arrived the figure of consumption at 295 litres per person per day ? Even Chief Minister Lim unable to confirm it correctness. Does Penang state government has been mislead by technocrat or NGO to provide rational of higher tariff charge of other states  in the country is anybody guess?
 
Penang have the best water supply management of non-revenue water (NRW) at 17.6 per cent compared with the national average of 36.4 per cent,
 
NRW cannot be just classified as pipes leakages. we cannot discount possibility of water theft. Some state have more than 50% of NRW and average NRW of the country is around 37%.

It is ridiculous for a tiny state like Perlis have more than 66%of NRW. Shouldn't a small state like Perlis able to replace all it pipes if leakages is main reason for NRW? Rumors in the market claim that the state government close one eye on water theft to beneficial the people. If that is the case, why government not just announce a free water tariff for...say... first RM20.00 like in Selangor?
 
 
It is not sure whether NRW included in water consumption calculation. If  water consumption calculation included NRW. I doubt that Penang still the highest per person per day?

If the NRW of Perlis be included  as a calculation of water consumption. Then, Perlis, with 66% of NRW, will be the highest consumption water state in the country. Why NGO just targeted Penang? Because it has the lowest water tariff and other state unable to increase their water tariff if water tariff in Penang remain the same?
 
Further, Penang are a tourist and water sports destination. Does the calculation excluded consumption by tourist? tourist have to take bath after water sports etc. Further, it doesn't help if hawker and other F&B outlet need water not just to serve local but tourist as well.

It seem that Penang state government has been trapped by technocrat and NGO?
 
However, I always though that PBA have the lowest water tariff in the country because of their efficiency. It is surprise to discover that Penang state government provide seven (7) figures subsidy per year to achieve lowest water tariff in the country.

Then why share price of PBA increase after announcement of possible tariff hike! Shouldn't it just a  reduction of state government subsidy and have no impact on bottom line?

 
It seem PBA still have a lot of work to do to further lower it NRW