Updates on Water Services Industry Rules and Regulations 2014

Suruhanjaya Perkhidmatan Air Negara (SPAN) recently announced that the Water Services Industry (Water Reticulation and Plumbing) Rules 2014 and Water Services Industry (Water Services Deposits, Fees and Charges) Regulations 2014 took effect on 1 February 2014.

The Rules and Regulations aim to standardise the water services technical requirements and deposit rates, fees and charges throughout Peninsular Malaysia including Kuala Lumpur, Putrajaya and Labuan. It will replace the existing water supply rules and deposit rates, fees and charges (disconnection or reconnection) which previously vary according to states.

The Water Services Industry (Water Reticulation and Plumbing) Rules 2014 has been updated to provide for and regulate the technical and performance standards for the design, construction, installation, operation and maintenance of water reticulation system, pipe fittings and any matters related to it. The main features of the rules are transparency and clarity to ensure that all water services licensees, developers and owners fully understand SPAN’s policy. The scope of these rules are divided into 6 sections as follows:

a)    Part I – Preliminary

Includes citation, commencement date of the Rules in operation which is 1 February 2014 and the interpretation of terms used.

b)    Part II – General

This section provides the application of general rules to ensure that there is no:

  • waste;
  • improper use;
  • abuse; or
  • contamination of the water supply system.

It also seeks to ensure that all fittings and installation work and modifications done, are in compliance to industry standards and the requirements of these rules. Failure to comply will be convicted of an offense under section 129 of the Act.

c)    Part III – Centralised Service Reservoirs, Supply Main and External Water Reticulation System

These Rules are intended to establish a framework for the regulation, planning, design, construction and installation of a centralised service reservoirs, external water reticulation system and supply main.

d)    Part IV – Plumbing

This part covers the requirements in establishing a regulatory framework for assembly and plumbing regulatory framework.

e)    Part V – Requirements for Water Fittings in a Private Water Supply System

Refers to the establishment of a framework for the regulation of water fittings in a private water supply system which is applicable to the class licensees.

f)     Part VI – Transitional Provisions

This part covers the transitional provisions for the application or operation of certain matters.

DEPOSITS, FEES AND CHARGES

The Water Services Industry (Water Services Deposits, Fees and Charges) Regulations 2014 details the structure of deposits, fees and charges for various types of water services for developers and users. It also seeks to ensure that all deposits, fees and water service charges are standardised and applied nationwide.

The schedule of deposits, fee and charges are tabled below:

FIRST SCHEDULE, PART I (Rule 3)

Deposit for Water Supply Account

Item

Category of Premises

Rates (RM)

1.

Residential
(a)  Low cost flat/house

50

(b)  Apartment/condominium unit

70

(c)  Single storey house

70

(d)  Double/multiple storey house

100

(e)  Apartment/condominium/flat/gated community with bulk meter

2,000

2.

Commercial and Industrial
(a)  Single storey shop house with estimated water demand not exceeding 2,000 litres per day

200

(b)  Double/multiple storey shop house with estimated water demand not exceeding 4,550 litres per day

300

(c)  Private fire hydrant (with separate water meter)

200

(d)  Water kiosk

750

(e)  Water supply for construction works

(Estimated monthly water demand to be provided by the consumer to the water distribution licenses) x (the rates for water supply services) x 2

(f)   Any other commercial or industrial premises or use not falling under paragraphs (a) to (e) above

(Estimated monthly water demand to be provided by the consumer to the water distribution licensee) x (the rates for water supply services) x 2

3.

Social
(a)  Places of worship/buildings for religious institutions

100

(b)  Community centres and halls

100

4.

Government institution and non-profit organisation
(a)  Government institution

100

(b)  Non-profit organisation approved by any government authorities under any written law

100

 

 

FIRST SCHEDULE, PART II (Rule 9)

Deposit for Water Testing

Item

Categories

Rates (RM)

1.

For meter size of less than 50mm

50

2.

For meter size of 50mm and above

Meter testing costs

 

FIRST SCHEDULE, PART III (Rule 10)

Deposit for Temporary Metered Supplies

Item

Categories

Rates (RM)

1.

Temporary metered supplies

(Estimated monthly water demand to be provided by the consumer to the water distribution licensee) x (the rates for water supply services) x 2

 

SECOND SCHEDULE, PART I (Rule 11)

Meter Installation Fee

Item

Categories

Rates (RM)

1.

(a)  For meter size of less than 50mm

40

2.

(b)  For meter size of 50mm to 100mm

80

3.

(c)  For meter size of 101mm to 150mm

100

4.

(d)  For meter size of more than 150mm

120

 

THIRD SCHEDULE, PART I (Rules 14, 15, 16)

Capital Contribution Rates for Residential Premises Developed by Developer

Item

Type of premises

Where supply mains or service reservoirs are constructed by developer

Rate per premise (RM)

Where supply mains or service reservoirs are constructed by licensee

Rate per premise (RM)

1.

Low/low medium/medium cost house/flat

75

75 + (0.40 x estimated water demand where supply mains are constructed by the licensee) + (0.80 x estimated water demand where service reservoirs are constructed by the licensee)

2.

Any type of premises with selling price/market value above RM70,000.00 to RM150,000.00

300

300 + (0.40 x estimated water demand where supply mains are constructed by the licensee) + (0.80 x estimated water demand where service reservoirs are constructed by the licensee)

3.

Any type of premises with selling price/market value above RM150,000.00 to RM300,000.00

500

500 + (0.40 x estimated water demand where supply mains are constructed by the licensee) + (0.80 x estimated water demand where service reservoirs are constructed by the licensee)

4.

Any type of premises with selling price/market value above RM300,000.00 to RM500,000.00

1,000

1,000 + (0.40 x estimated water demand where supply mains are constructed by the licensee) + (0.80 x estimated water demand where service reservoirs are constructed by the licensee)

5.

Any type of premises with selling price/market value above RM500,000.00

1,500

1,500 + (0.40 x estimated water demand where supply mains are constructed by the licensee) + (0.80 x estimated water demand where service reservoirs are constructed by the licensee)

 

THIRD SCHEDULE, PART II (Rules 14, 15, 16)

Capital Contribution Rates for Non-Residential Premises

Developed by Developer or Owner

Item

Type of premises

Where supply mains or service reservoirs are constructed by developer or owner

Rate per premise (RM)

Where supply mains or service reservoirs are constructed by licensee

Rate per premise (RM)

1.

(a)  Shop houses(b)  Shop offices(c)  Linked/terraced factories

500 x number of floors x number of water supply connections per floor

(500 x number of floors x number of water supply connections per floor) + (0.40 x estimated water demand where supply mains are constructed by the licensee) + (0.80 x estimated water demand where service reservoirs are constructed by the licensee)
(d)  Light industrial workshops(e)  Semi-detached workshops/bungalow workshops(f)   Heavy industry premises(g)  Medium industry premises

(h)  Light industry premises

 

1,000 or (0.18 x estimated water demand), whichever is higher

(1,000 or (0.18 x estimated water demand), whichever is higher) + (0.40 x estimated water demand where supply mains are constructed by the licensee) + (0.80 x estimated water demand where service reservoirs are constructed by the licensee)
(i)    Government premises

1,000 or (0.13 x estimated water demand), whichever is higher

(1,000 or (0.13 x estimated water demand), whichever is higher) + (0.40 x estimated water demand where supply mains are constructed by the licensee) + (0.80 x estimated water demand where service reservoirs are constructed by the licensee)
(j)    Premises for private education institution(k)  Private hospitals

1,000 or (0.18 x estimated water demand), whichever is higher

(1,000 or (0.18 x estimated water demand), whichever is higher) + (0.40 x estimated water demand where supply mains are constructed by the licensee) + (0.80 x estimated water demand where service reservoirs are constructed by the licensee)
(l)    Markets

1,000 or (0.13 x estimated water demand), whichever is higher

(1,000 or (0.13 x estimated water demand), whichever is higher) + (0.40 x estimated water demand where supply mains are constructed by the licensee) + (0.80 x estimated water demand where service reservoirs are constructed by the licensee)
(m) Office/commercial complexes(n)  Community centres or halls(o)  Hotels(p)  Bus terminals

(q)  Petrol kiosks

(r)   Stadiums

(s)   Golf courses

(t)    Airports

(u)  Other type of premises

1,000 or (0.18 x estimated water demand), whichever is higher

(1,000 or (0.18 x estimated water demand), whichever is higher) + (0.40 x estimated water demand where supply mains are constructed by the licensee) + (0.80 x estimated water demand where service reservoirs are constructed by the licensee)

 

THIRD SCHEDULE, PART III (Rules 14, 17, 18)

Capital Contribution Rates for Residential Premises Developed by Owner Other than Specified in Part I

Item

Type of premises

Where there are existing supply mains or service reservoirs constructed by licensee

Rate per premise (RM)

Where supply mains or service reservoirs are constructed by licensee

Rate per premise (RM)

1.

Any type of premises with selling price/market value above RM70,000.00 to RM150,000.00

300

300 + (0.40 x estimated water demand where supply mains are constructed by the licensee) + (0.80 x estimated water demand where service reservoirs are constructed by the licensee)

2.

Any type of premises with selling price/market value above RM150,000.00 to RM300,000.00

500

500 + (0.40 x estimated water demand where supply mains are constructed by the licensee) + (0.80 x estimated water demand where service reservoirs are constructed by the licensee)

3.

Any type of premises with selling price/market value above RM300,000.00 to RM500,000.00

1,000

1,000 + (0.40 x estimated water demand where supply mains are constructed by the licensee) + (0.80 x estimated water demand where service reservoirs are constructed by the licensee)

4.

Any type of premises with selling price/market value above RM500,000.00

1,500

1,500 + (0.40 x estimated water demand where supply mains are constructed by the licensee) + (0.80 x estimated water demand where service reservoirs are constructed by the licensee)

 

FOURTH SCHEDULE, SUB-RULE 14 (3)

Type of Premises Not to be Charged with Capital Contribution

Item

Categories

1.

Low cost housing scheme fully financed by the State or Federal Government

2.

Premises owned by individual house owner valued less than RM70,000.00

3.

Places of worship and buildings for religious institutions

4.

Premises owned by a non-profit organisation approved by any government authorities under any written laws

5.

Community centres and multi-purpose halls for public use

 

For more information, please refer to SPAN website at www.span.gov.my. If you have any further enquiries, please contact the Water Regulatory Department, National Water Services Commission (SPAN) at 03-83179321, 03-83179324, 03-83179325 or 03-83179326.

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