Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik said a request to review the Selangor water tariffs by the state’s new concessionaire did not mean an automatic increase in charges.  

“I did not say that there will be an increase in tariffs,” he said after chairing Gerakan’s monthly central committee meeting yesterday.

He said Syabas could ask for a review once in three years under an agreement it signed with the Federal and Selangor governments to take over Perbadanan Urus Air Selangor Bhd (PUAS) on Wednesday. 

Syabas is owned by Puncak Niaga Holdings Bhd (70%) and the Selangor government (30%). 

“However, it did not mean that there would be an automatic increase in tariff. 

“Unlike other concessions, if the Government decided that Syabas was not efficient, it could decide not to increase the tariffs,” Dr Lim said, adding that the Government did not need to pay compensation if it did not agree with the increase. 

He was commenting on reports that six million consumers in the Klang Valley would have to pay the new rates from Jan 1, 2006. 

Dr Lim said any increase in tariff would be based on the index standard benchmark performance such as improvement in non-revenue water, quality of water and a system to monitor the performance through the call centres. 

“If there are many people calling up to complain about the water supply, it shows that the company is not performing well,” he said. 

“If they don’t perform, we don’t give a tariff increase. 

“If we don’t give a tariff increase, the Government does not need to compensate the company,” he said. 

“If the water supply becomes worse, we can even terminate the concession,” he added. 

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