JOHOR BARU: Johor’s water tariff rates will not be changed despite the floating of diesel price being expected to significantly impact Ranhill SAJ’s operations.
The state water operator’s chief finance officer Abdul Aziz Khan Alior Khan said the lifting of diesel subsidies in Peninsular Malaysia would affect the company as it depends heavily on diesel-powered machinery.
“Our operations, including repairing faulty pipes and addressing the people’s complaints, involve a lot of heavy vehicles that use diesel on a daily basis.
“However, we cannot arbitrarily impose tariff hikes as (doing so) is subjected to the law and National Water Services Commission (SPAN),” he told reporters after the company’s anti-graft pledging ceremony at a hotel here yesterday.
When asked about the impact of the diesel price float on water tariffs, Abdul Aziz Khan added that it is still early to tell by how many percent its operating costs would increase due to the diesel float.
“Looking at the jump from RM2.15 per litre to RM3.35 per litre of diesel, of course it will leave a direct impact. But we also have to factor in other costs.
“Though we expect it to have a significant impact on our operations, we cannot simply transfer the costs to the consumer.
“The decision (on water tariffs) does not depend on us; we will refer to SPAN but for now, there will be no new tariffs,” he said.
On June 10, the government floated diesel price in the peninsula. The retail price of RM3.35 per litre was based on the Automatic Pricing Mechanism formula for the month of May.
Johor’s water rate for the first 20 cubic metres is RM1.05; RM2.35 per cubic metre for usage from 20 cubic metres to 30 cubic metres; followed by RM3.15 per cubic metre for usage exceeding 35 cubic metres.
Meanwhile, Ranhill SAJ chief executive officer Anuar Abdul Ghani said the necessary preparations have been carried out, including holding a workshop last month, to prevent unwanted disruptions during the upcoming Hari Raya Aidiladha period.
He said this was to ensure no repeat of the Hari Raya Aidilfitri incident this year, where about 1,000 account holders in Kulai experienced water cuts.
“Only some 1,000 account holders out of the 1.2 million holders statewide were affected. But this is not to say we are dismissing them.
“The incident happened because of technical faults and the shrinking of the Sembrong Dam in Kluang, of which the issues have been addressed.
“I am confident that it will not happen again this festive season,” he said, adding that the state’s dams are at stable levels.
He added that Malaysians will often “balik kampung” (return to their hometowns) during festive seasons, so the company has to be ready to handle the surge in water usage.
On April 11, some 1,000 households in Kulai, mainly in Kampung Murni Jaya, Kampung Sri Muar and Felda Bukit Permai, reportedly had to spend their Aidilfitri without water.
Residents had to depend on static tanks for supply while waiting for the situation to improve.
