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Economics Politics & government

[2745] We need to ration our water

There seems yet another water crisis on the horizon, or here even. But walking around, it is hard to know that for sure. Out there in the streets well out of the dams and water plants, building management are instructing their workers to water the grass even after the rain, keeping it green and all. I spotted one worker watering a tree with a huge trunk for several minutes, while reading his phone. Car owners are washing their cars with generous amount of water. AirAsia plans the largest water balloon fight in Malaysia in November this year, right in the middle of Petaling Jaya, somehow trivializing the water assets negotiation in Selangor. AirAsia calls it Burst Asia and tickets are selling for RM48.

Yet, from the news we are learning water at various dams are below the critical levels previously seen earlier this year when rationing took place. The authority is pumping water from old mining ponds into our water supply as a solution. There are accusations that the ponds are contaminated with heavy metals. Whether it is true or not, it is clear this is a sign of desperation with the authority trying to augment the dam water in Selangor. If that does not signal desperation, then the sudden turn of events in the past months with respect to the Selangor water assets negotiation has to be one. After all, the basis for the Pahang-Selangor water tunnel and the controversial Langat 2 water plant revolves around future water shortage. There are those who claim the current shortage is a made-up crisis, especially among those in the current Selangor state government. They claim sabotage, saying somebody is trying to make the state government look bad. I do not know about those saboteurs but there is a water crisis, regardless of its sources.

Water prices meanwhile remain cheap. It has not changed for some time now. The Selangor state government refuses to raise it, supposedly for the benefit of the people, claiming the water companies are not doing enough to warrant a tariff hike. While these water companies are indeed slacking off, breaching their contracts and there is even a smell of corruption in the air, prices remain low and controlled too tightly to encourage judicious use of water. The free water policy by Selangor also does not seem to help. Sure, the free water policy says water is free of charge up to a certain level but the idea of free and saving do not go along well with each other. The policy encourages consumption, not saving.

So, there is a water crisis on the supply side but it does not seem to be so, looking at the consumption side.

Why?

It is because information does not flow from supply to the demand side. Prices do not correspond with water supply and so consumers, whether residential, commercial or industrial, act normal. Prices are prevented from functioning properly.

To correct the situation, we need to float the prices, or at least hike it up. Unfortunately, there is no political will for that. In fact, the current political establishment is hostile to any hike. Selangor Menteri Besar Khalid Ibrahim has guaranteed there will be no rationing. And lest people make him a scapegoat, that is a Pakatan Rakyat’s policy. Their credibility is dependent on a no hike outcome.

Given that political constraint, the next best thing is to resort to non-market solutions. That involves water rationing unfortunately.

There has to be a signal sent to the demand side, telling these consumers, “hey guys, there is a water crisis here. You might want to slow it down a notch.” Without that signal, consumers will act as if everything is alright. If it goes as things are going, there might be none to ration at all later. So, we need to send a stronger signal to the consumers. News reports alone are not working.

I know several people have written in support of rationing. Add me into that list.

I do believe water users in Selangor and Kuala Lumpur will tolerate rationing better than having no water at all.