SHAH ALAM - Selangor residents may have to contend with higher water tariffs in the future after the restructuring of the water industry is completed, said Menteri Besar Tan Sri Abdul Khalid Ibrahim.
He said the need to increase the state's water tariff would depend on the profits accrued from the restructuring.
He said if the state government could reduce the bulk raw water treatment services payment, there would be no need to increase the water tariff.
"Some water concession companies get more than 35 per cent returns on its bulk service fee for water treatment.
"If we reduce the rate of returns from 35 per cent to six or seven per cent, then the price (water tariff) will be reasonable and there won't be any need to increase the tariff.
"However, we expect there will still be a need (to increase the water tariffs) in the future but we will take the interest of consumers into consideration," he told the state assembly here yesterday.
He was responding to a question by Lau Weng San (DAP-Kg Tunku) on whether the water tariff structure would change after the water industry restructuring is completed.
Khalid also said that the poor and those who do not utilise a lot of water would not be subjected to higher water tariffs.