2020 would will not be bringing you hoverboards, flying cars or a cure for all diseases, but rather, an increase in water tariffs.

The cabinet has recently approved a Tariff Setting Mechanism (TSM), which will be implemented by the government next year.

Depending on the area, the proposed tariff increase would be between 6 cents and 71 cents per 1,000 litres.

The government listed several reasons for the increase, including :

  • The current rate and the true cost of production
  • The weakening of water supply service providers’ financial capability
  • The risk affecting the quality of water services to end-users

Currently, the tariff is RM1.38 per 1,000 litres while the cost of production is RM2.31.

Despite this, the government pointed out that the proposed hike would be done in a manner that will not burden low-income households.

They’ve mentioned there would be a minimum increment for households that consume under 20 cubic metres per month.

FYI, about 47.8% of domestic consumers in Malaysia consume under 20 cubic metres per month with many of the consumers being a part of the lower income group (B40).

Thankfully, if you happen to live in Selangor and have a household income of below RM4,000, you could enjoy free water for the first 20 cubic metres.

Better update your monthly budgets for 2020 as it looks like with the new fuel subsidy and increase in water tariffs means that you’ll have to spend more on expenses.

What are your thoughts on the increase in water tariffs? Let us know what you think on our FacebookTwitter, and Instagram!

(Water tariffs to be raised next year)
(Minimal water tariff increase next year)
(Water tariff set to go up next year)

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