PUTRAJAYA, 7 Mar: The Ministry of Energy, Green Technology and Water, in a statement to Bernama today, confirmed that the Selangor Government, through its subsidiary company, Kumpulan Darul Ehsan Berhad (DEB) will determine the needs for any review of the water tariff.

This was referring to claims that water tariffs for Selangor, Federal Territories and Putrajaya needed to be increased, following the construction of the Langat 2 water treatment plant (LRAL2).

“As such, the Selangor Government, through its own subsidiary, will set the requirements for a water tariff revision and an increased tariff quantum to be charged to consumers by taking into account business plans to operate water supply for Selangor, Kuala Lumpur and Putrajaya,” it said.

The ministry, in a statement here Thursday, clarified two main points outlined in the MoU – the acquisition of Selangor water concession companies by the state government through Kumpulan Darul Ehsan Bhd, and giving approval to allow LRAL2 to be implemented immediately.

Through the MoU, the federal government expressed readiness to assist the state government to obtain funds to acquire the Selangor water concession companies. The subsidiary will become the water operator for Selangor, Kuala Lumpur and Putrajaya.

“As the water operator, the ministry said, it would be the subsidiary’s responsibility to provide business plans for submission to enable approval of the National Water Services Commission, including proposing any tariff revision to ensure its sustainability,” the statement said.