BN to Penang government: explain attempt to increase water rates

Despite this, the state government applied to the Federal Water authorities in December 2016 to increase water rates by 77% for domestic consumers and a 58% for businesses

PETALING JAYA: Barisan Nasional (BN) today challenged the Lim Guan Eng led Penang government to deny it had sought to raise water tariffs earlier this year, the fourth revision since the DAP took control of the island state.

According to its strategic communications team, the hike would have affected some 126,000 households, already burdened by increases in water rates since 2010 and the doubling of the state’s raw water charges in 2016.


Despite this, the state government applied to the Federal Water authorities in December 2016 to increase water rates by 77% for domestic consumers and a 58% for businesses.

However, the state withdrew the application at the eleventh hour and doubled the tariff instead, a move BN insists was driven by a steep rise in operational costs incurred by the Guan Eng administration.

Adamant the state is failing, BN wants to know what happened to the RM37 billon the state government gained through the wanton sale of state land since the DAP came into power in 2008.

On Sunday, the party’s strategic communications team sought clarification from Guan Eng over the Penang Transport Masterplan project, seeking to know from the Chief Minister if the cost had ballooned from RM27 billion to RM46 billion in just one year,.

The team also wanted to know if the state had been forced to make an emergency infusion of RM609 million to the Penang Development Corp and RM30 million to the Penang Water Supply Corporation (PBA).

According to the team, the allegations, if proven true, might help shed light on why the state administration had resorted to broadening its revenue stream by raising quit rent, parking fees and water rates, among others.

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