Gov’t May Raise Water Tarriffs By 30% In Selangor, KL & Putrajaya Starting July This Year
The government is planning to raise water tariffs nationwide starting July 1, with Selangor, Kuala Lumpur, and Putrajaya expected to see an average increase of 30%.
The National Water Services Commission (SPAN), water operators, and state governments are currently discussing the new tariff structure.
The Ministry of Energy Transition and Water Transformation (PETRA) has approved a special water tariff category for data centers, setting the rate at RM5.50 per cubic meter.
This means data centers will no longer be charged under the standard industrial water tariff.
Water tariff discussions still ongoing
SPAN chairman Charles Santiago confirmed to The Edge that negotiations are still in progress.
The final decision requires Cabinet approval and will be officially announced by Minister Datuk Seri Fadillah Yusof.
Insiders revealed to Nan Yang Siang Pau that state governments are still evaluating the proposed adjustments.
Under the Federal Constitution, water resources fall under state jurisdiction. Therefore, SPAN has instructed water operators to obtain written approval from their respective state governments by March 31 before implementing the new tariff-setting mechanism (TSM).
If state governments fail to approve the new tariffs by March 31, the increase may not be implemented in July,” a source told the Chinese daily.
Selangor KL and Putrajaya to face 30% increase
Air Selangor has proposed a 30% average increase for Selangor, Kuala Lumpur, and Putrajaya.
This would mark the second consecutive year of tariff hikes, following an adjustment in January last year.
If the proposed increase takes effect, household water tariffs (for individual meters) will be adjusted as follows:
- First 20 cubic meters: RM0.57 → RM0.6843 per cubic meter
- 21–35 cubic meters: RM1.24 → RM1.61 per cubic meter
- Above 35 cubic meters: RM2.55 → RM3.32 per cubic meter
For a household consuming 50 cubic meters per month, the monthly bill will increase from RM68.25 to RM87.63, a rise of RM19.38 (excluding electricity surcharge).
Non-household users will also see similar adjustments:
- Up to 35 cubic meters: RM2.62 → RM3.41 per cubic meter
- Above 35 cubic meters: RM2.86 → RM3.72 per cubic meter
For businesses consuming 100 cubic meters per month, the bill will increase from RM277.60 to RM361.15.
Places of worship, charities, and maritime users will also face a 30% hike.
However, the electricity surcharge will remain unchanged at RM0.08 per cubic meter.
Government aims to improve water infrastructure
The tariff increase aims to improve the financial stability of water operators and fund infrastructure upgrades.
Air Selangor reported a total cost of RM3.51 billion in 2023, while revenue only reached RM2.82 billion, highlighting the gap between water tariffs and operating expenses.
To ensure future water supply stability, Air Selangor is investing heavily in upgrading facilities. The first phase of the Sungai Rasau Water Treatment Plant will cost RM4 billion, with the second phase estimated at RM2.14 billion.
Special water tariff for data centers introduced
The government has also approved a new water tariff category for data centers, setting the rate at RM5.50 per cubic meter.
Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad previously highlighted concerns over AI infrastructure development, which is increasing pressure on water and electricity resources.
SPAN chairman Charles Santiago warned that excessive water consumption by data centers could impact long-term water security if left unchecked.
The federal government has instructed state authorities to ensure sufficient raw water supply before approving new data centers, to prevent strain on water-scarce areas.
