Tariffs and Pricing of Water in Malaysian
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TARIFFS AND
PRICINGCHALLENGE S OF WATER PRICING: MALAYSIA
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ECW 717
Water Resources Planning & Managem
NAME STUDENT ID
AHMAD KAMIL BIN MOHAMED ALAUDDIN 2015113727
KHADIJAH BINTI MOHAMAD ARIS 2015655236
MADELINA ANAK COSMAS PANGGIE 2014981023
NORASHIKIN BINTI MAT DAMIN 2015109311
ROSILA BINTI SHAKRI 2015073291
Prepared by: GROUP 2
Prepared for Dr. Jazuri Abdullah and Dr. Suzana Ramli
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Challenges of Water Pr!ng: MALAYS
S!o"eof
St#$%
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O&'ECTI(ESWATER PRICING
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• Peo"le not a)are of the real !osts of "ro*$ng
santaton ser*!es+
• Water s a so!al goo$ an$ t )as !ons$ere$ a,#n$ant reso#r!es+
• Al)a%s $ea )ater sho#l$ ,e free or )e sho#l$ "eo"le n or$er to hel"- es"e!all% the "oor ,#t )at,e free f there s a,#n$ant of s#""l%+
• Ho)e*er )th o #laton ro)th an$ .#!h lar er !o
WHY SETTING TARIFF IN WATER?
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• Pro"er )ater tar0s "ro*$e n!ent*es to ."ro*e s#
)ater an$ santaton ser*!es an$ to #se )ater reso#e1!entl%+
• Tar0s generate re*en#e to re!o*er s"e!2! !osts+
• Tar0s generate re*en#es to re!o*er s"e!2! !osts eson o"eraton- .antenan!e an$ generate f#n$s fornfrastr#!t#re $e*elo".ent an$ e3"anson+
• Rel#!tan!e of .an% go*ern.ents to "r!e )ater l4e
WHY SETTING TARIFF IN WATER?
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• Water sho#l$ ,e treate$ as a so!o e!ono.! goo$ )"ost*e "r!ng )here there s !o."etng $e.an$ a2nte s#""l%+
• Wrong "r!ng of )ater )ll lea$ to .sallo!aton of
reso#r!es+
• Ha*ng "a% for )ater !an en!o#rage "eo"le to re$#)astng )ater
WHY SETTING TARIFF IN WATER?
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TYPES OF WATER
TARIFFSWATER PRICING
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TYPES OF WATER TARIFFS
Cons#.er5s .onthl%)ater ,ll s ,ase$ on a
sngle t%"e of!al!#laton
Cons#.er5)ater ,ll the s#. of!al!#laton
So#
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FIED CHARGE
SINGLE – PARTTARIFFS
• Cons#.er5s .onthl% ,ll are 23e$ regar$less of the*ol#.e #se$+
• Poss,le for a""l!aton )th the a,sen!e of .eter;!o..on n .#lt<store% a"art.ent ,#l$ngs $#e t#n.etere$ !onne!tons=+
• E3a."le: Tar0 S!he$#le n >gan$a ;A"rl 8??@=Domestic use Tarif (shii!"# Tarif ($SD#
8 ta" 687 +B@
6 ta"s 887 87+@9
@ < ta"s 87 8B+9
O*er ta"s 6BB67 69+
So#r!e: (l!ara a
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(OL>METRIC CHARGE
SINGLE – PARTTARIFFS
$!i%orm &oumetric
'har"e
oc) Tarif
• Household’s water bill = quantity
used x price per unit of water.
• Advantages: Easier for consuer to
understand without abiguous
factors
• Exaple: !ndia
S
IT(I!creas
i!"
oc)Tarif#
DT
(Decreasi!"
oc) Tarif#
7 E+8 E+8 8E 8E7
7+6
7+D
7+9
7+E
8 &lo!4 Tar0 Str#!t#re for Wate
G#antt% ;.A=
Pr!e ;MYR "er .A=*!+ oc)
,-.. to .,
m/
(R0 1-/2#
/r+ oc) .,-1. to 34 m/ (
1-25#
.st oc)
to , m/
(R0 1#
7 87 87 677
7+6
7+D
7+9
7+E
8
8ua!tit9 (m/
Price (:;m/#
'it9 Water Tarif(Ru<ees <er
)L=#
an"r 6+7
S#rat 6+7
Ma$#ra 6+7
4L 4loltre
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HY&RID
Fi>e+
'har"e
Wateruse
char"e(&oumetric tarif#
To –PartsTarifs
TW@ – PARTSTARIFF
Water 'o!sum<tio! m/ <ermo!th
Tarif($SD <erm/#
8st &lo!4 8 to 67 7+7
6n$ &lo!4
67+78 to 7 7+8
r$
&lo!4
7+78 to 7 7+6
th
E>am<e Tarif Structure i! Sa! Buia!E Sa7a+or
@ther 'har"es 'h($
S%ste.$e"re!aton
8
Mantenan!e 8
Se)erage s%ste. 7
Tota Fi>e+'har"e /
IT (I!creasi!" oc) Tarif# Fi>e+'har"e
So#r!e: (l!ara
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CHALLENGESWATER PRICING
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WATERGO(ERNANC
E
F$NDING @FINFRASTR$'T
$RE
Hea*l% $e"en$son go*ern.entf#n$ng
$NDERTACING@F
'@00ER'IALL@ANS
Allo)e$ $#e tola!4 of f#n$ng
fro.go*ern.ent
PRI&ATISA
Allo)e$ to
on *aro#sof )at
ser*!es ,on !on!es
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PRE ; P@STPR@BE'T
PR@BE'T;W@RC PLANNING
Not )ell "lanne$J s!r#tnse$
PR@BE'TPR@'$RE0ENT
8+ No tght!ontrolJs#"er*son
6+ Corr#"ton
0@NIT@R
P@ST PR@
Non Re*eWate
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STRATEGIC
APPROACHWATER PRICING
Refor.aton
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A.en$.ents to Fe$eralConstt#tonK Water Ser*!es ,% Fe$eral Go*ern.eK Water Reso#r!es ,% State Go*ern.e
FEDERAL CONSTIT>TION;a.en$e$ an$ gaette on 87 Fe, 677@=
Water Ser*!esIn$#str% A!t ;WSIA=
Natonal WaterSer*!es Co..ssonA!t ;SPAN=
Fe$eral La)s OnEn*ron.ent-&#l$ng- Health et!+
Fe$eral De"art.ents
State WaterEna!t.ent ;ra))ater=
State WaterDe"art.ent
&efore WSIAK Water Ser*!es Reso#r!es!arre$ ,% State Go*ern.ent
Go*ernng )atern$#str% ser*!e
Go*ernngen*ron.ent-
,#l$ng- health
Go*ernng )ater,asn- e3tra!ton !onser*aton of ra)
)ater s#""l%
Refor.aton To)ar$s a!he*ng s#stana,lt% an$
e1!en!%
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• Settng "ol!% $re!tons
Fe$eral Go*ern.ent
• Manage )ater ,asns ;"rote!t /#alt% an$$entf% ne) ,asns=
State Go*ern.ent
• Ens#re !oor$naton )th *aro#s StateGo*ern.ent
Natonal Water Reso#r!esCo#n!l
• Reg#late the )ater ser*!es n$#str%,ase$ on "ol!% $re!tons
SPAN
After Refor.atonClear Dstn!t*e Roles
• Consol$ate$ o"for the state
• L!ense$ ,% SPA• PI set to ens#r
e1!ent an$ e0ser*!e $el*er%
O"erators
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WATER TARIFF IN MALAYSIA
STATESWATER PRICING
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WATER INSTIT>TION
• More states ha*e o"te$ to esta,lsh )ater s#""l% !o."a!or"orataton+
• So.e states ha*e f#ll% "r*ate$ the "ro*son of )ater
• A fe) states ha*e !hosen a $#al str#!t#re )ater s%ste.• )ater $str,#ton ,% state agen!es
• )ater treat.ent "r*ate$ *a !on!essons
• In so.e !ases- the state go*ern.ent !ontn#es to hol$ e
the "r*ate$ )ater enttes So#
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WATER TARIFFS IN MALAYSIA5S STATES
SELANG@R C$ALA L$0P$R
P$TRABAYAS>PPLIER:SYARIAT &EAL AN AIR SEL ANGOR ;SYA&AS=
• Mn.#. Pa%.ent RM9+77
• A*erage .onthl% )ater ,ll ;66+@.= RM8+?
PERAC
S>PPLIER:LEM&AGA AIR PERA ;L
• Mn.#. Pa%.ent RM
• A*erage .onthl% )ate RM86+9
'o!sum<tio!s
(m
/
#
Price (R0#;
m
/
7 67 RM7+@B
68 @ RM8+7
O*er @ RM6+77
'o!sum<tio!s(m/#
Pric
7 87 R
88 67 R
O*er 67 R
(the average monthly fgure
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WATER TARIFFS IN MALAYSIA5S STATES
PAHANG
S>PPLIER:PENG> R>SAN AIR PAHANG &ERHAD ;PAIP=
• Mn.#. Pa%.ent RM+77
• A*erage .onthl% )ater ,ll ;66+@.= RM87+66
NEGERI SE0
S>PPLIER:SYARIAT AI R NEGERI SEM&ILAN ;SAINS=
• Mn.#. Pa%.ent RM
• A*erage .onthl% )ate RM8+7
'o!sum<tio!s(m/#
Price (R0#;m/
7 8 RM7+B
8? @ RM7+B?
O*er @ RM7+??
'o!sum<tio!s(m/#
Pric
7 67 R
68 @ R
O*er @ R
(the average monthly fgure
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WATER TARIFFS IN MALAYSIA5S STATES
B@H@R
S>PPLIER:SYARIAT AIR 'OHOR ;SA'=
• Mn.#. Pa%.ent RMB+77
• A*erage .onthl% )ater ,ll ;66+@.="l#s .n.#. "a%.ent RM68+77
CELANTA
S>PPLIER:AIR ELANTAN SDN &HD
• Mn.#. Pa%.ent RM
• A*erage .onthl% )aterRM88+7
'o!sum<tio!s(m/#
Price (R0#;m/
7 67 RM7+7
68 @ RM6+77
O*er @ RM+77
'o!sum<tio!s(m/#
Pric
7 67 R
68 @ R
O*er @ R
(the average monthly fgure
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WATER TARIFFS IN MALAYSIA5S STATES
TERENGGAN$
S>PPLIER:SYARIAT AIR TERENGGAN> SDN &HD ;SAT>WATER=
• Mn.#. Pa%.ent RM+77
• A*erage .onthl% )ater ,ll ;66+@.= RM87+77
CEDAH
S>PPLIER:SYARIAT AIR DAR>L AM
• Mn.#. Pa%.ent RM
• A*erage .onthl% )ateRM86+6@
'o!sum<tio!s(m/#
Price (R0#;m/
7 67 RM7+6
67+8 7 RM7+9@
7+8 < 97 RM7+?7
O*er 97 RM8+77
'o!sum<tio!s(m/#
Pric
7 67 R
68 @ R
O*er @ R
(the average monthly fgure
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WATER TARIFFS IN MALAYSIA5S STATES
PERLIS
S>PPLIER:SYARIAT AIR P ERLIS ; SAP=
• Mn.#. Pa%.ent RM+77
• A*erage .onthl% )ater ,ll ;66+@.= RM88+7
P$LA$ PINA
S>PPLIER:PER&ADANAN &EALAN PINANG SDN &HD ;P&AP
• Mn.#. Pa%.ent RM
•A*erage .onthl% )aterRM@+@@
'o!sum<tio!s(m/#
Price (R0#;m/
7 8@ RM7+7
89 6@ RM7+B7
O*er 6@ RM8+87
'o!sum<tio!s(m/#
P
7 67
68 7
8 97
98 < 677
O*er 677
(the average monthly fgur
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WATER TARIFFS IN MALAYSIA5S STATES
0ELACA
S>PPLIER:SYARIAT AIR M ELAA &ERHAD ;SAM& =
• Mn.#. Pa%.ent RM9+77
• A*erage .onthl% )ater ,ll ;66+@.=
RM8+7
SAAH
S>PPLIER:SA&AH STATE WATER DE
• Mn.#. Pa%.ent RM
• A*erage .onthl% )ater
RM88+7
'o!sum<tio!s(m/#
Price (R0#;m/
7 67 RM7+97
68 @ RM7+?@
O*er @ RM8+@
(the average monthly fgure
'o!sum<tio!s(m/#
P
7 8788 67
68 @
9 97
O*er 97
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SARAWAC
S>PPLIERS:• >CHING: >CHING CITY WATER &OARD ;W&=• SI&>: SI&> WATER &OARD ;SW&=• MIRI- &INT>L>- AND LIM&ANG-: LA> MANAGEMENT
These rates onl% a""l% to #!hng- S,#- Sr A.an- Mr-L.,ang- Sar4e an$ a"t+
• Mn.#. Pa%.ent RM+7
A*erage .onthl% )ater ,ll ;66+@.= RM86+9
StateA
Cuaa Lum<urSea!"or
Pera)
Paha!"
Ne"eri Sem6ia!
Bohor
Cea!ta!
Tere!""a!u
Ce+ah
Peris
Pe!a!"
0aacca
Saraa)
Sa6ah
'o!sum<tio!s(m/#
Price (R0#;m/
7 8@ RM7+
89 @7 RM7+B6
O*er @7 RM7+B9
WATER TARIFFS IN MALAYSIA5S STATES
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CONCL>SIONWATER PRICING AND TARIFF
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CONCL>SION
• Man% of the larger an$ .ore<$e*elo"e$ states has oto "r*ate the "ro*son of )ater ser*!es n an attto ."ro*e s#!h ser*!es+
• S#,s$es sho#l$ ,e targete$ to the lo)<n!o.e an$
n!o.e ho#sehol$+
• Pr!ng refor.s are .ost l4el% to ,e s#!!essf#l f thgreater "#,l! a)areness of )ater !hallenge an$ )a.anage.ent+ So#r!e
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REFERENCES
• htt"s:JJrnggt"l#s+!o.JenJ,logJHo#sehol$<&#$getngJHo)<M#!h<Does<Wat<n<Mala%sa+ht.l
• htt":JJ)))+ss).+nfoJ!ontentJ)ater<"r!ng<general
• (l!ara+ ( an$ arna+ ' ;677?=+ Water Tar0s n De*elo"ng Co#ntreCase St#$% n L.a- Per#+
• O1!al Portal Mnstr% of Nat#ral Reso#r!es an$ En*ron.ent ;NRE
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• S#r#hana%a Per4h$.atan Ar Negara+ ;n+$+=+ Retre*e$ A"rl 8B- 6fro. htt":JJ)))+s"an+go*+.%J
• N+W Chan ;677?=- Iss#es an$ Challenges n Water Go*ernan!e nMala%sa
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THAN YO>