MANAGING STAKEHOLDERS WATER TARIFF - … Managing... · MANAGING STAKEHOLDERS IN RESPECT TO JOHOR...

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Transcript of MANAGING STAKEHOLDERS WATER TARIFF - … Managing... · MANAGING STAKEHOLDERS IN RESPECT TO JOHOR...

MANAGING STAKEHOLDERS

IN RESPECT TO JOHOR

WATER TARIFF

BY

HJ MOHD GHAZALI BIN IBRAHIM

ASSISTANT GENERAL MANAGER

CUSTOMER SERVICE DEPARTMENT

SAJ HOLDINGS SDN BHD

CONTENTS

1. Introduction.

2. Who are the Stakeholders.

3. Background history of water

tariff review in Johor.

4. Managing Stakeholders in4. Managing Stakeholders in

various stages of tariff setting.

5. Conclusions.

OBJECTIVES OF PRESENTATION

� BRIEF BACKGROUND HISTORY OF TARIFF

REVIEW IN JOHOR.

� TO SHARE EXPERIENCE IN SAJ TARIFF

REVIEW.REVIEW.

� TO SHARE SAJ APPROACH TO STAKEHOLDER

ENGAGEMENT DURING THE WATER TARIFF

REVIEW.

SCOPE OF PRESENTATION

TARIFF REVIEW 2010

AFTER MIGRATION TO AFTER MIGRATION TO

WSIA 2006.

INTRODUCTION

� In July 2010, the UN general assembly proclaimed

access to safe drinking water and sanitation as a

human right. At the same time, water and

sanitation are also economic goods.

� A water tariff is the price assigned to water

supplied by a public utility generally for both

freshwater supply and wastewater collection &

treatment.

[ Source : www: sswm.info ]

INTRODUCTION

WATER TARIFFS is an

important economic

instrument for improving

water use efficiency,

enhancing social equity andenhancing social equity and

securing financial

sustainability of water

utilities and operators.

Source: http://www.wsp.org/userfiles/image/november2002.jpg [Accessed: 23.03.2010]

HOW HIGH SHOULD THE PRICE FOR

WATER BE?

It should be as

For

ConsumersFor Utilities

For the

Environment

It should cover It should be as It should be as

cheap as

possible

It should cover

all running and

reinvestment

costs

It should be as

expensive as

possible (so it is

not wasted)

�Defining an appropriate price for water can help to make

Sanitation and Water Management socially, economically, and

environmentally sustainable.

source : www: swmm.info

OUR CONCERNS

• Water tariff design is a political

process that is rife with

controversy

• Rather than providing

affordable water to the poor,

pricing strategies may lead to:-pricing strategies may lead to:-

– Revenues do not cover operational

and maintenance costs of utilities

– Hence, access to the services cannot

be guaranteed for all

– Inequity

Source: http://www.wsp.org/index.cfm?page=page_disp&pid=10820

(Accessed 10.06.2010)

WATER SERVICES INDUSTRY ACT 2006 ( ACT 655 )

PART VI RATES, CHARGES AND DEPOSITS

SECTION DESCRIPTION

84 ( 1 ) THE MINISTER MAY, ON THE RECOMMENDATION OF THE

COMMISSION,

MAKE REGULATIONS TO PRESCRIBE THE LEVEL OF RATES TO BE

CHARGED FOR THE WATER SUPPLY SERVICES AND SEWERAGE

SERVICES.

84 ( 2 ) WITHOUT PREJUDICE TO THE GENERALITY OF SUBSECTION ( 1 ),

REGULATIONS MAY BE MADE :-

(a) To prescribe the rates for water supply services and sewerage

services including bulk water supply;

(b) To prescribe the different levels of rates for water supply services

and sewerage services based on category of users, consumption,

type of use and geographical location or in such manner as the

Commission deems appropriate.

DEFINITION OF STAKEHOLDERS

A person or company that is

involved in a particular

organization, project, system, etc,organization, project, system, etc,

especially because they have

invested money in it.

[Source: Advance Oxford Dictionary]

DEFINITION OF STAKEHOLDERSStakeholders are persons or groups who are directly

or indirectly affected by a project, as well as those

who may have interests in a project and/or the ability

to influence its outcome, either positively or

negatively. Stakeholders may include locally affectednegatively. Stakeholders may include locally affected

communities or individuals and their formal and

informal representatives, national or local

government authorities, politicians, religious leaders,

civil society organizations and groups with special

interests, the academic community, or other

businesses.

( IFC : International Finance Corporation, World Bank )

MAIN STAKEHOLDERS INVOLVED ?� ALL CATEGORIES OF WATER CUSTOMERS

� SAJ’S SHAREHOLDERS, BOD AND STAFF

� SURUHANJAYA PERKHIDMATAN AIR NEGARA ( SPAN) – 1 JANUARY

2007

� PERBADANAN ASSET AIR BERHAD ( PAAB )

� KERAJAAN NEGERI JOHOR ( UPEN AND BAKAJ )

� LENDING INSTITUTIONS

� POLITICIAN� POLITICIAN

� WATER FORUM

� FOMCA

� PERSATUAN PENGGUNA NEGERI JOHOR

� KEMENTERIAN TENAGA , TEKNOLOGI HIJAU DAN AIR

� KABINET MALAYSIA

� FEDERATION OF MANUFACTURERS MALAYSIA

� PERSATUAN PEMAJU-PEMAJU PERUMAHAN ( REDHA )

� MEDIA

BACKGROUND HISTORY OF JOHOR WATER TARIFF –

ENFORCEMENT DATE

01/01/1969

26/07/1973

01/01/197701/09/1983

01/09/1986

01/04/1991

01/01/2001

01/07/2003

01/01/2007

01/11/2010

11/06/1968

18/02/1982

28/10/1995

06/07/2009

15/03/2023

En

forc

em

en

t D

ate

Overall Water tariff review at an average of every 4 years

01/03/1965

26/07/1973

00/01/1900

08/09/1913

18/05/1927

24/01/1941

03/10/1954

En

forc

em

en

t D

ate

WATER TARIFF SETTING IN JOHOR

THE OBJECTIVES� REVENUE SUFFICIENCY

� ECONOMIC EFFICIENCY

� EQUITY AND FAIRNESS

� RESOURCE CONSERVATION

� PUBLIC ACCEPTABILITY� PUBLIC ACCEPTABILITY

� POLITICAL ACCEPTABILITY

� SIMPLICITY AND TRANSPARENCY

� NET REVENUE STABILITY

� EASE OF IMPLEMENTATION

SAJ’S KEY STAKEHOLDER PROCESSESS AND

APPROACHES TO ENGAGEMENTKEY

STAKEHOLDER

STRATEGIC

OBJECTIVES

FOR

ENGAGEMENT

KEY INTERESTS

AND CONCERN

OF THE

STAKEHOLDERS

METHOD AND

FREQUENCY OF

ENGAGEMENT

KEY

ACHIEVEMENT

FROM

ENGAGEMENT

WORKING

COMMITTE

BRAINSTORM,

EXPLORE AND

EVALUATE

BUSINESS PLAN REGULAR

MEETING

PROPOSED

TARIFF

EVALUATE

SAJ’S BOD ENDORSEMENT SUSTAINABLE

REVENUE,

PROFIT

BOD MEETING APPROVED TO

SUBMIT TO

SPAN

SPAN REGULATORY

COMPLIANCE.

SUSTAINABLE

WATER

INDUSTRY

SERVICE

IMPROVEMENT,

JUSTIFICATION,

IMPACT TO

CUSTOMER

REGULAR

MEETING

APPROVED AND

SUBMIT TO

KeTHHA

SAJ’S KEY STAKEHOLDER PROCESSESS AND

APPROACHES TO ENGAGEMENT

KEY

STAKEHOLDER

STRATEGIC

OBJECTIVES

FOR

ENGAGEMENT

KEY INTERESTS

AND CONCERN

OF THE

STAKEHOLDERS

METHOD AND

FREQUENCY

OF

ENGAGEMENT

KEY

ACHIEVEMENT

FROM

ENGAGEMENT

KeTHHA THE STATUS OF

PROPOSE

WATER TARIFF

TO GET

APPROVAL FROM

CABINET

REGULAR

CONTACT

WATER TARIFF

GAZETTED

WATER TARIFF CABINET

PAAB POLICY ON

CAPEX

NEW ASSETS

AND

MAINTENENCE

REGULAR

MEETING

IMPROVED

SERVICE LEVEL

STATE

GOVERNMENT

( EXCO

MEMBERS)

AWARENESS OF

THE PROPOSED

WATER TARIFF

REVIEW

THE RAKYAT

AND

INDUSTRIAL

CUSTOMER

BRIEFING BLESSING AND

SUPPORT

SAJ’S KEY STAKEHOLDER PROCESSESS AND

APPROACHES TO ENGAGEMENTKEY

STAKEHOLDER

STRATEGIC

OBJECTIVES

FOR

ENGAGEMENT

KEY INTERESTS

AND CONCERN

OF THE

STAKEHOLDERS

METHOD AND

FREQUENCY

OF

ENGAGEMENT

KEY

ACHIEVEMENT

FROM

ENGAGEMENT

WATER FORUM AWARENESS

AND

JUSTIFICATION

CUSTOMER

PROTECTION

AND QUALITY OF

BRIEFING BUY IN

AND

SUPPORTJUSTIFICATION AND QUALITY OF

SERVICES

SUPPORT

FMM AWARENESS

AND

JUSTIFICATION

INDUSTRIAL

CUSTOMERS

BRIEFING BUY IN

AND

SUPPORT

FOMCA AWARENESS

AND

JUSTIFICATION

CONSUMER

PROCTECTION

AND SERVICE

LEVEL

BRIEFING BUY IN

AND

SUPPORT

SAJ’S KEY STAKEHOLDER PROCESSESS AND

APPROACHES TO ENGAGEMENT

KEY

STAKEHOLDER

STRATEGIC

OBJECTIVES

FOR

ENGAGEMENT

KEY INTERESTS

AND CONCERN OF

THE

STAKEHOLDERS

METHOD AND

FREQUENCY

OF

ENGAGEMENT

KEY

ACHIEVEMENT

FROM

ENGAGEMENT

REDHA AWARENESS

AND

HOUSING

INDUSTRY

BRIEFING SUPPORT

AND

JUSTIFICATION

INDUSTRY

SAJ’S STAFF AWARENESS KNOWLEDGE AND

IMPLEMENTATION

ROAD SHOWS WINNING AND

SUPPORT

OTHERS FORM OF

ENGAGEMENTENGAGEMENT

OTHERS FORM OF STAKEHOLDERS ENGAGEMENT

SAJ’S APPROACH

� MESRA PELANGGAN – TO GATHER FEEDBACKS

AND CONCERN OF THE CUSTOMER

� PARTICIPATION IN STATE GOVERNMENT EVENTS

– DISTRICTS AND STATE LEVEL– DISTRICTS AND STATE LEVEL

� STAKEHOLDERS AWARENESS

� KEY CUSTOMERS – BIGGEST CONSUMPTION

� CRITICAL CUSTOMER - HOSPITAL

� KEY INFLUENCERS- COMMUNITY LEADERS

SAJ’S MESRA PELANGGAN

� Our approach to customer engagement during the

price-setting process. To build up rapport with

customers.

� In developing this approach, we have taken into� In developing this approach, we have taken into

account the responses and feedbacks we received

to our decisions about water services in Johor.

� We commenced the first Mesra Pelanggan

programme on the 8 August 2000 in Labis, Johor.

SAJ’S MESRA PELANGGAN

HISTORICAL DATESNO LOCATION DATE

1 MESYUARAT PEMBANGUNAN DAERAH KOTA TINGGI 19/10/2000

2 KETUA- KETUA JABATAN PASIR GUDANG 23/10/2000

3 MAJLIS DAERAH KLUANG SELATAN 01/11/2000

4 MAJLIS DAERAH KLUANG UTARA 02/11/2000

5 MESYUARAT PEMBANGUNAN DAERAH BATU PAHAT 06/11/2000

6 MAJLIS PERBANDARAN JOHOR BAHRU TENGAH 09/11/2000

7 MAJLIS DAERAH SEGAMAT UTARA 10/11/2000

8 MAJLIS DAERAH SEGAMAT SELATAN 11/11/2000

9 KETUA-KETUA JABATAN DAERAH MUAR 16/11/2000

10 MAJLIS BANDARAYA JOHOR BAHRU 20/11/2000

Date Activities Status / Remarks

24th March 2012 World Water Day

celebration @ Taman

Merdeka Johor Bahru

A yearly event co organized with SPAN, MBJB & BAKAJ in

collaboration with DOE, JPS, Petrosains, Perpustakaan Awam

Johor and Pelajaran Johor

14th July 2012 SAJ Media Race A ‘journey’ to make the media personnel and invitees from

ACTIVITIES AND PUBLISHED INFORMATION ON

WATER CONSERVATION IN 2012

14 July 2012

(Treasure Hunt)

A ‘journey’ to make the media personnel and invitees from

State Government well-informed as well as well-aware of SAJ

and operations. The journey is from SAJ Training Center to

Gunung Pulai Dam. The ‘tulip’ includes: an information on

water conservation.

Bil 02/12

Sept 2012

Buletin SAJ (Published

Information) Focus: “Bekalan Air vs Permintaan Air”

7th November

2012

Grand Final of Water

Education Public Speaking

Competition

It’s seven of participants from secondary school were

shortlisted and went to grand final. The competition with the

water conservations’ topic.

1. SAJ Water Education Program

List of 35 secondary schools participated in SAJ’s Education Program update to

Dec 2012.

WATER CONSERVATION & PUBLIC AWARENESS

PROGRAM

No District School Date of Event

1 SMK Sultan Ismail

2 SMK Aminuddin Baki

JOHOR BAHRU 24 March 2012

2 SMK Aminuddin Baki

3 Maktab Sultan Abu Bakar

4 SMT ERT Azizah

5 Sekolah Tun Fatimah

6 MERSING SMK Anjung Batu 24 April 2012

7 SMK Mersing

8 MUAR SMKA Maahad Muar 19 June 2012

9 SMK Dato’ Sri Amar DiRaja

10 PONTIAN SMK Dato’ Penggawa Barat 28 June 2012

11 SMK Dato’ Ali Haji Ahmad

Cont.

No District School Date of Event

12

KOTA TINGGI

SMK Tanjung Datuk

17 July 2012

13 SMKA Bandar Penawar

14 SMK Tanjung Pengelih

15 SMK Bandar Penawar

16 SMK Adela

17 SMK Tun Hussein Onn

1. SAJ Water Education Program ~ continued

KLUANG

27 July 2012

18 SMK Seri Intan

19 SMK Seri Lalang,

20 SMK Datuk Menteri

21

BATU PAHAT

SMK Tun Ismail

27 September

2012

22 SMK Yong Peng

23 SMK (P) Temenggong Ibrahim

24 SMK Tunku Mahmood

Iskandar

25 SMK Senggarang

No District School Date of Event

26

SEGAMAT

SMK Seri Bali, Cha’ah

24 October 2012

27 SMKA Cha’ah, Jln Kg Jawa Baru,

Cha’ah

28 SMK LKTP Pemanis

29 SMK Bekok

30 SMK Bandar Putra

1. SAJ Water Education Program ~ continued

30 SMK Bandar Putra

31

KLUANG

Sekolah Tinggi Kluang

29 October

2012

32 SMK Seri Semberong

33 SMK Sultan Abdul Jalil

34 SMK Taman Seri Kluang

35 SMK Tengku Aris Bendahara

OUTCOMES OF THE STAKEHOLDERS

ENGAGEMENT IN JOHOR

� PUBLICS AND CUSTOMER REALISE AND DO NOT

FEEL THE INCREASE IN WATER TARIFF.

� NOT MANY COMPLAINTS

� STAKEHOLDERS ACCEPTANCE

WATER AND POVERTY

� SPECIAL TARIFF

� MISKIN TEGAR – 20 cubic meter free

� MISKIN – 10 cubic meter free

Pegawai Daerah melalui e-kasih� Pegawai Daerah melalui e-kasih

� Pejabat Kebajikan Masyarakat

� Majlis Agama Islam

� Jabatan Kemajuan Orang Asli

IMPACTS OF THE TARIFF REVIEW

� CONSUMPTION PER CAPITA PER DAY

� NRW REDUCED

� GRADUAL DEMAND PROJECTION- DELAYED IN CAPEX

IMPLEMENTATION

� ALTHOUGH WATER TARIFF IN JOHOR AMONG THE� ALTHOUGH WATER TARIFF IN JOHOR AMONG THE

HIGHEST, COLLECTION EFFICIENCY IS HIGH – Willingness

to Pay

� LONG TERM SUSTAINABILITY

� FASTER TOWARD FULL COST RECOVERY WATER TARIFF

CONSUMPTION PER CAPITA PER DAY

210 211 212 216 217 213 215

120.00

140.00

160.00

180.00

200.00

220.00

240.00

l /

ca

p /

d

0.00

20.00

40.00

60.00

80.00

100.00

120.00

2006 2007 2008 2009 2010 2011 2012

l /

ca

p /

d

Source Data: SAJ

NON REVENUE WATER31.54 30.79 30.07 29.74 29.88 29.18 28.63

27.76

16.00

18.00

20.00

22.00

24.00

26.00

28.00

30.00

32.00

34.00%

NR

W

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Jan

-10

Fe

b-1

0

Ma

r-10

Ap

r-10

Ma

y-1

0

Jun

-10

Jul-1

0

Au

g-1

0

Se

p-1

0

Oct-1

0

No

v-1

0

De

c-10

Jan

-11

Fe

b-1

1

Ma

r-11

Ap

r-11

Ma

y-1

1

Jun

-11

Jul-1

1

Au

g-1

1

Se

p-1

1

Oct-1

1

No

v-1

1

De

c-11

Jan

-12

Fe

b-1

2

Ma

r-12

Ap

r-12

Ma

y-1

2

Jun

-12

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

No

v-1

2

De

c-12

% N

RW

Source Data: SAJ

COLLECTION EFFICIENCY

� This is defined as the current year revenues

collected, expressed as a percentage of the

total operating revenues for the

corresponding time period.corresponding time period.

� It is an indicator for commercial efficiency

as it measures how effectively a utility is

able to collect revenues from the services it

bills the customers.

COLLECTION EFFICIENCY

81.10%

116.27%110.99%

86.75%

107.52%

91.97%

120.58%

95.78%90.44%

111.61%

70.00%

80.00%

90.00%

100.00%

110.00%

120.00%

130.00%C

oll

ec

tio

n E

ffic

ien

cy

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Jan

-10

Fe

b-1

0

Ma

r-10

Ap

r-10

Ma

y-1

0

Jun

-10

Jul-1

0

Au

g-1

0

Se

p-1

0

Oct-1

0

No

v-1

0

De

c-10

Jan

-11

Fe

b-1

1

Ma

r-11

Ap

r-11

Ma

y-1

1

Jun

-11

Jul-1

1

Au

g-1

1

Se

p-1

1

Oct-1

1

No

v-1

1

De

c-11

Jan

-12

Fe

b-1

2

Ma

r-12

Ap

r-12

Ma

y-1

2

Jun

-12

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

No

v-1

2

De

c-12

Co

lle

cti

on

Eff

icie

nc

y

Source Data: SAJ

CONCLUSIONS� EFFECTIVELY AND EFFICIENTLY

IN MANAGING THE STAKEHOLDERS

RELATIONS IS THE KEY SUCCESS

FACTORS TOWARD ACCEPTANCE OF

WATER TARIFF.WATER TARIFF.

� STAKEHOLDERS ENGAGEMEMT IS

THE CONTINUOS PROCESS.

THANK YOUTHANK YOU