Xavier confused on SPAN’s role in water tariff review, says association

KUALA LUMPUR: The federal government has to be clear on its role in the review of water tariffs, Association of Water and Energy Research Malaysia president S. Piarapakaran said.

He said the Water, Land and Natural Resources Minister Dr Xavier Jeyakumar’s statement that the National Water Services Commission (SPAN) was in talks with state governments to get their agreement on a proposed review of tariffs was “baffling”.

“I don’t know who gave him the briefing but I think the minister is confused on whether SPAN is the operator or regulator.

“The state or concessionaires submit proposals to SPAN for hikes and SPAN makes a decision based on this... it is not the other way round.

“This is also highlighted in the Water Services Industry Act (Wasia),” Piarapakaran said.

Dr Xavier announced on Tuesday that some states might see an increase in water tariffs this year, adding that SPAN had forwarded the business plans to them.

He was taken to task by Barisan Nasional lawmaker Khairy Jamaluddin, who responded by tweeting: “It’s for state governments to propose to SPAN, not the other way around.

“The minister should not preempt state governments as water is a state matter.

“SPAN should not be sending states a business plan to consider,” Khairy had tweeted, while attaching a Parliament Hansard of the former minister in charge, clarifying how water tariffs are determined.

Piarapakaran said it was standard operating procedure for SPAN to facilitate the review of tariffs over three to five years.

He, however, said state governments looking to increase tariffs often claimed that the hikes came about due to the federal government’s review exercise.

“It is the state that chooses to ask for a hike from the federal government.

“The (federal) government only makes the decision by weighing the cost and benefits to the state and people alike. But the state initiates this process,” Piarapakaran said.

He added that he had attended a meeting with SPAN and the Melaka government 10 years ago, where the state begged for an increase in tariffs.

“But when the hike was imposed, they turned the tables on the federal government by saying that it was not them but the federal authorities that wanted the hike.

“Opportunistic menteris besar and chief ministers use this as a ruse to increase the tariffs time and again.”

He said it was high time SPAN put into force a transparent tariff setting mechanism to ensure consumers were not made to pay for inefficiencies in the operator’s supply chain.