Sada announces tariff adjustment to sustain water supply in Kedah

New Straits Times

a day ago

ALOR STAR: Syarikat Air Darul Aman (Sada) is implementing a tariff adjustment through a review of the Tariff Setting Mechanism for all categories of users in Kedah, taking into account the company's operational expenditure (Opex) and capital expenditure (Capex).
In a statement, Sada said the tariff adjustment came into effect yesterday and will be reflected in the September billing cycle.
"The tariff adjustment is a crucial requirement for the water operator to ensure long-term sustainability of the water supply in the state.
"It is also in line with Sada's ongoing efforts to improve service quality through the development of water infrastructure projects currently being actively implemented by the state government and Sada itself.
"Key focus areas include the replacement of old and deteriorated pipes, which are the main contributors to the non-revenue water (NRW) issue.
"To address water supply shortages, several new water treatment plant (WTP) projects are being developed, including the Pelubang WTP, Kodiang WTP Phase 1, Padang Saga WTP Phases 4 and 5, Sidam Kiri WTP Phase 1, Sungai Karangan WTP Phase 1, and the construction of a compact plant at Kulim Hi-Tech," it said.
Sada added that repair works for distribution systems and pump houses were also being actively carried out to address low water pressure issues in several areas.
It said additional revenue from the tariff adjustment would be used to cover operating costs, repair and maintenance of existing systems, development of new, more sustainable and efficient water supply systems, improvements in service quality, including the company's capacity to respond to consumer complaints more swiftly, and to reduce the NRW rate in Kedah.
"The adjustment also considers the need to meet the company's operating costs for 2025, which are expected to increase by six per cent, covering key components such as electricity, wages, raw water charges, and chemicals used in the water treatment process," it said.
Sada said that these rising costs exerted direct pressure on the company's operational capacity to deliver efficient, stable and quality water supply services to the people of Kedah.
"This tariff adjustment is seen as a strategic step to ensure the company's financial stability and to strengthen Sada's ability to continuously plan and implement service improvements," it added.
Overall, the impact of the tariff adjustment was described as reasonable and not burdensome.
Sada said the adjustment had gone through a thorough review with the National Water Services Commission (SPAN) and was being implemented in phases to avoid burdening users.
According to the statement, the approach taken strikes a balance between user affordability and the need for the water operator to meet its operating expenses.