Water operators who fail to meet KPI face losing licence

PUTRAJAYA, Jan 17: The licence issued to water supply service operators under the National Water Services Commission (SPAN) can be revoked if they do not achieve the required key performance indicators (KPI), said Deputy Minister of Energy Transition and Public Utilities Akmal Nasrullah Mohd Nasir.

This, he said, is stipulated under the Water Services Industry Act 2006 (Act 655).

“The reason is that the income of the water operators is expected to increase following the adjustment of the water tariff which takes effect on Feb 1,  and the revenue should be used to improve the quality of service and solve the main problem of water supply in the respective states,” he said.

He told a media conference regarding the water tariff adjustment here yesterday that the KPIs that the water operators are required to meet include ensuring the development and improvement of key infrastructure.

“This includes replacement of dilapidated pipes or the construction of new water treatment plants,” he added.

SPAN announced the adjustment of water tariffs for domestic users in the peninsula and Labuan with effect from Feb 12, involving an average increase of 22 sen per cubic meter.

Akmal Nasrullah said several states have submitted proposals to the ministry regarding efforts to improve services and infrastructure to provide better quality water supply services in their respective places.

“This will be our focus for the next two or three years, for us to prove that when there is a tariff adjustment, there is an improvement in terms of services provided,” he added.

Following the water tariff adjustment, he said, the ministry and SPAN will monitor to ensure continuous development of water supply services.

The ministry, he said,  will also examine the main issues facing water supply operators, including in Kelantan for it to comply with the minimum water quality standards set by the Ministry of Health, while in Kedah, it is on water pressure and no margin reserve resulting in the operator not being able to meet water supply demand.

“Therefore, it is important for every state to have a plan to solve specific issues, such as pollution, response, disturbances, complaints as well as overcoming the issue of water supply disruption,” he added.