KUALA LUMPUR, July 16 —
Selangor’s private water utility cannot initiate water rationing unless
directed by regulators, an industry group said today just as the state
government decided to take over the water works.
Water and Energy Consumer Association of Malaysia (WECAM)
secretary-general Foon Weng Lian said Syarikat Bekalan Air Selangor
(Syabas) has no such authority as they are not the water industry’s
regulators.
“By doing this, Syabas is suddenly behaving as if they are the regulators of the water industry,” he told The Malaysian Insider.
WECAM’s reaction follows an announcement from Syabas on July 14 that
it was asking the National Water Services Commission (SPAN) to allow an
immediate water rationing exercise for areas within the Klang Valley due
to the utility’s inability to maintain uninterrupted water supply to
the region.
Today, Foon also expressed support for the Selangor government’s move
to take over Syabas operations as announced earlier by Mentri Besar Tan
Sri Khalid Ibrahim.
“WECAM agrees with the actions of Selangor Mentri Besar Tan Sri
Khalid Ibrahim as this is an assessment of the state government’s rights
under the concession agreement,” he said.
Foon said that with the water industry restructuring process, water
services should once again come under the state government’s
jurisdiction. Previous privatisation moves in Selangor had move the
utility outside of the administration’s purview.
“Hopefully, after the restructuring process, the government can
conduct an asset light model with the state itself managing operations.
Hopefully, they can revoke concession agreements and promote reform in
the industry,” said Foon.
Earlier today Khalid announced that the Selangor state government
will invoke Clause 32 of the concessions agreement to step in and take
over operations currently handled by Syabas, with consent from the
federal government.
Khalid also added that Selangor was prepared to take the matter to court if the federal government blocks the move.
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