‘SPAN boss did not reveal withdrawal’

GEORGE TOWN: Penang withdrew its application to increase water tariffs in Februry after submitting a request for the hike to the national regulatory body last December, said Chief Minister Lim Guan Eng.

He said the Penang Water Supply Corporation (PBAPP) applied to the National Water Services Commission (SPAN) to raise water rates in the state, but withdrew it in writing on Feb 21.

Lim claimed that SPAN, however, opposed the withdrawal and backed the tariff increase so that the Penang state water concessionaire could rake in more revenue.

“SPAN wrote to PBAPP on April 25 objecting to the application withdrawal.

“On June 23, SPAN wrote again to PBAPP, stating that the proposed hike in Penang’s water conservation surcharge would not generate sufficient revenue, and that a water tariff increase should be considered,” Lim said in response to SPAN chairman Datuk Liang Teck Meng’s request on Sunday to reveal PBAPP’s application letter to increase water tariffs.

Lim lashed out at Liang for not disclosing the state’s move to withdraw the application to increase water rates.

Penang has been enjoying the lowest water rates in the country for decades. There had been four increases in water tariffs since 2010.