ALOR SETAR: Menteri Besar Datuk Seri Muhammad Sanusi Md Nor stated that the water tariff increase effective from August 1 will not burden Kedah residents.
He emphasised that the new rate of 81 sen for the first 20 cubic metres of domestic use is significantly lower than tariffs in other states.
According to Muhammad Sanusi, this adjustment is crucial for Syarikat Air Darul Aman Sdn Bhd (SADA) to manage the state government’s water-related debts.
“This tariff increase is not just happening in Kedah,“ he confirmed during the Kedah State Legislative Assembly session.
He noted that all ten water supply operators in the country requested and received approval for similar adjustments.
Muhammad Sanusi, who also chairs SADA, explained that profitability is essential for the company to settle its water supply debts.
SADA’s financial records show profits after tax ranging from RM31,000 to RM23.1 million between 2010 and 2018.
The company faced a loss of RM36 million in 2019 but returned to profitability with RM149,000 in 2020.
Profits grew to RM29.5 million in 2021, followed by RM29.4 million in 2022 and RM25.2 million in 2023.
SADA recorded RM41.5 million in profit for 2024 and projects an RM80 million profit for the current year.
Executive authority over clean water supply resides with the federal government through the National Water Services Commission (SPAN).
This is stipulated under Section 3 of the Water Services Industry Act 2006.
“SPAN issues licenses and controls all business plan operators,“ Muhammad Sanusi elaborated.
He added that SPAN possesses the executive power to take over operations if debt payments cannot be covered. – Bernama