New Water Tariff in Penang Deferred to July 2026 – What You Need to Know

Penang has formally postponed the commencement of its new water tariff until July 1, 2026 Chief Minister Chow Kon Yeow announced on Friday. The proposed increase was initially expected to take effect on August 1, 2025 as a part of the Second Implementation Period (TP2) of the Tariff Setting Mechanism (TSM). The idea was to alleviate some of the financial pressures for consumers in light of rising costs. 

The deferral will cover 715,957 registered water consumers consisting of domestic households and commercial consumers.

Who Stands to Gain from the Tariff Postponement?

In the scenario proposed:

Domestic Users:

613,660 households who used up to 35 cubic metres of water a month would have seen the bill for those households increase by RM0.30 to RM2.55. This represents 79.88% of domestic accounts in Penang.

Commercial Users:

95.38% of Penang’s 98,155 commercial accounts who used up to 200 cubic metres a month would have monthly increases of RM3.60 to RM35.70.

Why Was the Tariff Hike Proposed?

Based on the updated tariffs, the Penang Water Supply Corporation (PBAPP) estimated an additional revenue of RM20 million in six months. The RM20 million is a dedicated fund for improving the state’s water supply infrastructure, the first tariff action in over ten years.

The increase was approved by the National Water Services Commission (SPAN), as part of a wider national move towards achieving financial sustainability of water operators. However, increasing pressure on the state from consumer groups and opposition leaders made them reconsider especially to protect low income households.

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Chow confirmed support measures for vulnerable groups would be included in future announcements.