Khalid also said the Selangor government would ensure the water restructuring exercise would be completed by end of the year. He said steps would be taken to ensure that consumers in the state would continue to enjoy free water of up to 20 cubic metres and at the same time, keep the tariff at a reasonable rate.
“The restructuring exercise is to give better services to the people,” he said when asked to comment on the 37 per cent increase in the tariff effective Jan 1 next year as stipulated in the agreement with concessionaire Syarikat Bekalan Air Selangor Sdn Bhd (Syabas).
“The contract stipulates that the federal government will establish the tariff rate and the state government must adhere or otherwise pay compensation to the concessionaire,” he said.
Khalid said upon the completion of the exercise, the Selanggor government’s investment arm Kumpulan Darul Ehsan Bhd would manage the water provision in the state and all concession agreements would be terminated.
As such, he said, negotiations on the tariff increase would be between the state and federal government.