Of late, water seems a contentious issue, as seen in the ongoing dispute between our government and neighbour south of the border. All in, the point of contention boils down to a matter of pricing. Inevitably, consumers in Singapore can expect to pay a higher price for the use of water whatever the outcome.

Closer to home, The Star in its business section (Aug 24), reported in an article 'Puas expects to complete water distribution revamp in six months", which is a clear indication that consumers in the Klang Valley can also expect the same treatment in the months ahead.

Puas (Perbadanan Urus Air Selangor Bhd ) formerly Selangor Waterworks Dept (a statutory body) is in the midst of restructuring water distribution for Selangor and KL. It is reported that the government used to subsidise the operation to the tune of RM350 million to RM400 million. Puas CEO Mohd Sinon points out that the cost of distributing water was high, of which 40 percent are non-revenue water (NRW). Coupled with low water tariffs, Puas is saddled with over RM400 million in debt.

Water is to be distributed to three zones — north, middle and south. Each zone is to be managed by a joint-venture company set up by Puas and its existing water concessionaires namely Splash Sdn Bhd, Puncak Niaga Sdn Bhd and Konsortium Abass Sdn Bhd.

Puas CEO goes on to say: " We are confident that the three water distribution companies will be able to handle the respective zones efficiently and profitably, providing quality water and excellent service to consumers. We believe one of the ways to recoup our losses will be to invite our water producers to share Puas' responsibilities with a view of reducing the cost of water supply and distribution".

Contrary to these sugar-coated statements, consumers would likely see the reverse happening. Instead of reduced costs, the increase in costs would in all likelihood be passed on to the end user. Is this another instance where Malaysians are hoodwinked into accepting the consequence of poor management?

In a nutshell, the business of water supply entails water treatment and distribution of the utility. Selling treated water is lucrative. We can draw from the disparity in pricing between the cost of Johor's raw water and the price of Singapore's treated water. The loss as highlighted by Puas stems from its distribution channel, loss that can be attributed to asbestos pipes that have seen better days, pipes that are long overdue for replacement. Shouldn't that be the priority of Puas instead of its current restructuring?

A restructuring as planned would only benefit the respective water concessionaires who are profit driven. Just like toll concessionaires that are compensated for any shortfall, it is almost certain that the government would come to aid these vested interests in any eventuality. Is this restructuring going down the murky roads of Renong revisited (in the case of Plus), with consumers paying the debt incurred by the incestuous relation between business and politics?

Unlike electricity, water is an essential commodity that no one can do without. Electricity provides for modern-day comforts but water is the very essence of our existence. The profit motive as envisioned by Puas should be secondary to all other considerations hence the distribution of water should be left in the hands of those at the federal level.

What could be more magnanimous on the part of the government to ensure that all Malaysians continue to receive water at reasonable cost instead of scheming to profit the coffers of a few?

Within our borders, the activities of water supply should not be modelled as a business at all.