MANAGING STAKEHOLDERS WATER TARIFF - … Managing... · MANAGING STAKEHOLDERS IN RESPECT TO JOHOR...
Transcript of MANAGING STAKEHOLDERS WATER TARIFF - … Managing... · MANAGING STAKEHOLDERS IN RESPECT TO JOHOR...
MANAGING STAKEHOLDERS
IN RESPECT TO JOHOR
WATER TARIFF
BY
HJ MOHD GHAZALI BIN IBRAHIM
ASSISTANT GENERAL MANAGER
CUSTOMER SERVICE DEPARTMENT
SAJ HOLDINGS SDN BHD
CONTENTS
1. Introduction.
2. Who are the Stakeholders.
3. Background history of water
tariff review in Johor.
4. Managing Stakeholders in4. Managing Stakeholders in
various stages of tariff setting.
5. Conclusions.
OBJECTIVES OF PRESENTATION
� BRIEF BACKGROUND HISTORY OF TARIFF
REVIEW IN JOHOR.
� TO SHARE EXPERIENCE IN SAJ TARIFF
REVIEW.REVIEW.
� TO SHARE SAJ APPROACH TO STAKEHOLDER
ENGAGEMENT DURING THE WATER TARIFF
REVIEW.
INTRODUCTION
� In July 2010, the UN general assembly proclaimed
access to safe drinking water and sanitation as a
human right. At the same time, water and
sanitation are also economic goods.
� A water tariff is the price assigned to water
supplied by a public utility generally for both
freshwater supply and wastewater collection &
treatment.
[ Source : www: sswm.info ]
INTRODUCTION
WATER TARIFFS is an
important economic
instrument for improving
water use efficiency,
enhancing social equity andenhancing social equity and
securing financial
sustainability of water
utilities and operators.
Source: http://www.wsp.org/userfiles/image/november2002.jpg [Accessed: 23.03.2010]
HOW HIGH SHOULD THE PRICE FOR
WATER BE?
It should be as
For
ConsumersFor Utilities
For the
Environment
It should cover It should be as It should be as
cheap as
possible
It should cover
all running and
reinvestment
costs
It should be as
expensive as
possible (so it is
not wasted)
�Defining an appropriate price for water can help to make
Sanitation and Water Management socially, economically, and
environmentally sustainable.
source : www: swmm.info
OUR CONCERNS
• Water tariff design is a political
process that is rife with
controversy
• Rather than providing
affordable water to the poor,
pricing strategies may lead to:-pricing strategies may lead to:-
– Revenues do not cover operational
and maintenance costs of utilities
– Hence, access to the services cannot
be guaranteed for all
– Inequity
Source: http://www.wsp.org/index.cfm?page=page_disp&pid=10820
(Accessed 10.06.2010)
WATER SERVICES INDUSTRY ACT 2006 ( ACT 655 )
PART VI RATES, CHARGES AND DEPOSITS
SECTION DESCRIPTION
84 ( 1 ) THE MINISTER MAY, ON THE RECOMMENDATION OF THE
COMMISSION,
MAKE REGULATIONS TO PRESCRIBE THE LEVEL OF RATES TO BE
CHARGED FOR THE WATER SUPPLY SERVICES AND SEWERAGE
SERVICES.
84 ( 2 ) WITHOUT PREJUDICE TO THE GENERALITY OF SUBSECTION ( 1 ),
REGULATIONS MAY BE MADE :-
(a) To prescribe the rates for water supply services and sewerage
services including bulk water supply;
(b) To prescribe the different levels of rates for water supply services
and sewerage services based on category of users, consumption,
type of use and geographical location or in such manner as the
Commission deems appropriate.
DEFINITION OF STAKEHOLDERS
A person or company that is
involved in a particular
organization, project, system, etc,organization, project, system, etc,
especially because they have
invested money in it.
[Source: Advance Oxford Dictionary]
DEFINITION OF STAKEHOLDERSStakeholders are persons or groups who are directly
or indirectly affected by a project, as well as those
who may have interests in a project and/or the ability
to influence its outcome, either positively or
negatively. Stakeholders may include locally affectednegatively. Stakeholders may include locally affected
communities or individuals and their formal and
informal representatives, national or local
government authorities, politicians, religious leaders,
civil society organizations and groups with special
interests, the academic community, or other
businesses.
( IFC : International Finance Corporation, World Bank )
MAIN STAKEHOLDERS INVOLVED ?� ALL CATEGORIES OF WATER CUSTOMERS
� SAJ’S SHAREHOLDERS, BOD AND STAFF
� SURUHANJAYA PERKHIDMATAN AIR NEGARA ( SPAN) – 1 JANUARY
2007
� PERBADANAN ASSET AIR BERHAD ( PAAB )
� KERAJAAN NEGERI JOHOR ( UPEN AND BAKAJ )
� LENDING INSTITUTIONS
� POLITICIAN� POLITICIAN
� WATER FORUM
� FOMCA
� PERSATUAN PENGGUNA NEGERI JOHOR
� KEMENTERIAN TENAGA , TEKNOLOGI HIJAU DAN AIR
� KABINET MALAYSIA
� FEDERATION OF MANUFACTURERS MALAYSIA
� PERSATUAN PEMAJU-PEMAJU PERUMAHAN ( REDHA )
� MEDIA
BACKGROUND HISTORY OF JOHOR WATER TARIFF –
ENFORCEMENT DATE
01/01/1969
26/07/1973
01/01/197701/09/1983
01/09/1986
01/04/1991
01/01/2001
01/07/2003
01/01/2007
01/11/2010
11/06/1968
18/02/1982
28/10/1995
06/07/2009
15/03/2023
En
forc
em
en
t D
ate
Overall Water tariff review at an average of every 4 years
01/03/1965
26/07/1973
00/01/1900
08/09/1913
18/05/1927
24/01/1941
03/10/1954
En
forc
em
en
t D
ate
WATER TARIFF SETTING IN JOHOR
THE OBJECTIVES� REVENUE SUFFICIENCY
� ECONOMIC EFFICIENCY
� EQUITY AND FAIRNESS
� RESOURCE CONSERVATION
� PUBLIC ACCEPTABILITY� PUBLIC ACCEPTABILITY
� POLITICAL ACCEPTABILITY
� SIMPLICITY AND TRANSPARENCY
� NET REVENUE STABILITY
� EASE OF IMPLEMENTATION
SAJ’S KEY STAKEHOLDER PROCESSESS AND
APPROACHES TO ENGAGEMENTKEY
STAKEHOLDER
STRATEGIC
OBJECTIVES
FOR
ENGAGEMENT
KEY INTERESTS
AND CONCERN
OF THE
STAKEHOLDERS
METHOD AND
FREQUENCY OF
ENGAGEMENT
KEY
ACHIEVEMENT
FROM
ENGAGEMENT
WORKING
COMMITTE
BRAINSTORM,
EXPLORE AND
EVALUATE
BUSINESS PLAN REGULAR
MEETING
PROPOSED
TARIFF
EVALUATE
SAJ’S BOD ENDORSEMENT SUSTAINABLE
REVENUE,
PROFIT
BOD MEETING APPROVED TO
SUBMIT TO
SPAN
SPAN REGULATORY
COMPLIANCE.
SUSTAINABLE
WATER
INDUSTRY
SERVICE
IMPROVEMENT,
JUSTIFICATION,
IMPACT TO
CUSTOMER
REGULAR
MEETING
APPROVED AND
SUBMIT TO
KeTHHA
SAJ’S KEY STAKEHOLDER PROCESSESS AND
APPROACHES TO ENGAGEMENT
KEY
STAKEHOLDER
STRATEGIC
OBJECTIVES
FOR
ENGAGEMENT
KEY INTERESTS
AND CONCERN
OF THE
STAKEHOLDERS
METHOD AND
FREQUENCY
OF
ENGAGEMENT
KEY
ACHIEVEMENT
FROM
ENGAGEMENT
KeTHHA THE STATUS OF
PROPOSE
WATER TARIFF
TO GET
APPROVAL FROM
CABINET
REGULAR
CONTACT
WATER TARIFF
GAZETTED
WATER TARIFF CABINET
PAAB POLICY ON
CAPEX
NEW ASSETS
AND
MAINTENENCE
REGULAR
MEETING
IMPROVED
SERVICE LEVEL
STATE
GOVERNMENT
( EXCO
MEMBERS)
AWARENESS OF
THE PROPOSED
WATER TARIFF
REVIEW
THE RAKYAT
AND
INDUSTRIAL
CUSTOMER
BRIEFING BLESSING AND
SUPPORT
SAJ’S KEY STAKEHOLDER PROCESSESS AND
APPROACHES TO ENGAGEMENTKEY
STAKEHOLDER
STRATEGIC
OBJECTIVES
FOR
ENGAGEMENT
KEY INTERESTS
AND CONCERN
OF THE
STAKEHOLDERS
METHOD AND
FREQUENCY
OF
ENGAGEMENT
KEY
ACHIEVEMENT
FROM
ENGAGEMENT
WATER FORUM AWARENESS
AND
JUSTIFICATION
CUSTOMER
PROTECTION
AND QUALITY OF
BRIEFING BUY IN
AND
SUPPORTJUSTIFICATION AND QUALITY OF
SERVICES
SUPPORT
FMM AWARENESS
AND
JUSTIFICATION
INDUSTRIAL
CUSTOMERS
BRIEFING BUY IN
AND
SUPPORT
FOMCA AWARENESS
AND
JUSTIFICATION
CONSUMER
PROCTECTION
AND SERVICE
LEVEL
BRIEFING BUY IN
AND
SUPPORT
SAJ’S KEY STAKEHOLDER PROCESSESS AND
APPROACHES TO ENGAGEMENT
KEY
STAKEHOLDER
STRATEGIC
OBJECTIVES
FOR
ENGAGEMENT
KEY INTERESTS
AND CONCERN OF
THE
STAKEHOLDERS
METHOD AND
FREQUENCY
OF
ENGAGEMENT
KEY
ACHIEVEMENT
FROM
ENGAGEMENT
REDHA AWARENESS
AND
HOUSING
INDUSTRY
BRIEFING SUPPORT
AND
JUSTIFICATION
INDUSTRY
SAJ’S STAFF AWARENESS KNOWLEDGE AND
IMPLEMENTATION
ROAD SHOWS WINNING AND
SUPPORT
OTHERS FORM OF STAKEHOLDERS ENGAGEMENT
SAJ’S APPROACH
� MESRA PELANGGAN – TO GATHER FEEDBACKS
AND CONCERN OF THE CUSTOMER
� PARTICIPATION IN STATE GOVERNMENT EVENTS
– DISTRICTS AND STATE LEVEL– DISTRICTS AND STATE LEVEL
� STAKEHOLDERS AWARENESS
� KEY CUSTOMERS – BIGGEST CONSUMPTION
� CRITICAL CUSTOMER - HOSPITAL
� KEY INFLUENCERS- COMMUNITY LEADERS
SAJ’S MESRA PELANGGAN
� Our approach to customer engagement during the
price-setting process. To build up rapport with
customers.
� In developing this approach, we have taken into� In developing this approach, we have taken into
account the responses and feedbacks we received
to our decisions about water services in Johor.
� We commenced the first Mesra Pelanggan
programme on the 8 August 2000 in Labis, Johor.
SAJ’S MESRA PELANGGAN
HISTORICAL DATESNO LOCATION DATE
1 MESYUARAT PEMBANGUNAN DAERAH KOTA TINGGI 19/10/2000
2 KETUA- KETUA JABATAN PASIR GUDANG 23/10/2000
3 MAJLIS DAERAH KLUANG SELATAN 01/11/2000
4 MAJLIS DAERAH KLUANG UTARA 02/11/2000
5 MESYUARAT PEMBANGUNAN DAERAH BATU PAHAT 06/11/2000
6 MAJLIS PERBANDARAN JOHOR BAHRU TENGAH 09/11/2000
7 MAJLIS DAERAH SEGAMAT UTARA 10/11/2000
8 MAJLIS DAERAH SEGAMAT SELATAN 11/11/2000
9 KETUA-KETUA JABATAN DAERAH MUAR 16/11/2000
10 MAJLIS BANDARAYA JOHOR BAHRU 20/11/2000
Date Activities Status / Remarks
24th March 2012 World Water Day
celebration @ Taman
Merdeka Johor Bahru
A yearly event co organized with SPAN, MBJB & BAKAJ in
collaboration with DOE, JPS, Petrosains, Perpustakaan Awam
Johor and Pelajaran Johor
14th July 2012 SAJ Media Race A ‘journey’ to make the media personnel and invitees from
ACTIVITIES AND PUBLISHED INFORMATION ON
WATER CONSERVATION IN 2012
14 July 2012
(Treasure Hunt)
A ‘journey’ to make the media personnel and invitees from
State Government well-informed as well as well-aware of SAJ
and operations. The journey is from SAJ Training Center to
Gunung Pulai Dam. The ‘tulip’ includes: an information on
water conservation.
Bil 02/12
Sept 2012
Buletin SAJ (Published
Information) Focus: “Bekalan Air vs Permintaan Air”
7th November
2012
Grand Final of Water
Education Public Speaking
Competition
It’s seven of participants from secondary school were
shortlisted and went to grand final. The competition with the
water conservations’ topic.
1. SAJ Water Education Program
List of 35 secondary schools participated in SAJ’s Education Program update to
Dec 2012.
WATER CONSERVATION & PUBLIC AWARENESS
PROGRAM
No District School Date of Event
1 SMK Sultan Ismail
2 SMK Aminuddin Baki
JOHOR BAHRU 24 March 2012
2 SMK Aminuddin Baki
3 Maktab Sultan Abu Bakar
4 SMT ERT Azizah
5 Sekolah Tun Fatimah
6 MERSING SMK Anjung Batu 24 April 2012
7 SMK Mersing
8 MUAR SMKA Maahad Muar 19 June 2012
9 SMK Dato’ Sri Amar DiRaja
10 PONTIAN SMK Dato’ Penggawa Barat 28 June 2012
11 SMK Dato’ Ali Haji Ahmad
Cont.
No District School Date of Event
12
KOTA TINGGI
SMK Tanjung Datuk
17 July 2012
13 SMKA Bandar Penawar
14 SMK Tanjung Pengelih
15 SMK Bandar Penawar
16 SMK Adela
17 SMK Tun Hussein Onn
1. SAJ Water Education Program ~ continued
KLUANG
27 July 2012
18 SMK Seri Intan
19 SMK Seri Lalang,
20 SMK Datuk Menteri
21
BATU PAHAT
SMK Tun Ismail
27 September
2012
22 SMK Yong Peng
23 SMK (P) Temenggong Ibrahim
24 SMK Tunku Mahmood
Iskandar
25 SMK Senggarang
No District School Date of Event
26
SEGAMAT
SMK Seri Bali, Cha’ah
24 October 2012
27 SMKA Cha’ah, Jln Kg Jawa Baru,
Cha’ah
28 SMK LKTP Pemanis
29 SMK Bekok
30 SMK Bandar Putra
1. SAJ Water Education Program ~ continued
30 SMK Bandar Putra
31
KLUANG
Sekolah Tinggi Kluang
29 October
2012
32 SMK Seri Semberong
33 SMK Sultan Abdul Jalil
34 SMK Taman Seri Kluang
35 SMK Tengku Aris Bendahara
OUTCOMES OF THE STAKEHOLDERS
ENGAGEMENT IN JOHOR
� PUBLICS AND CUSTOMER REALISE AND DO NOT
FEEL THE INCREASE IN WATER TARIFF.
� NOT MANY COMPLAINTS
� STAKEHOLDERS ACCEPTANCE
WATER AND POVERTY
� SPECIAL TARIFF
� MISKIN TEGAR – 20 cubic meter free
� MISKIN – 10 cubic meter free
Pegawai Daerah melalui e-kasih� Pegawai Daerah melalui e-kasih
� Pejabat Kebajikan Masyarakat
� Majlis Agama Islam
� Jabatan Kemajuan Orang Asli
IMPACTS OF THE TARIFF REVIEW
� CONSUMPTION PER CAPITA PER DAY
� NRW REDUCED
� GRADUAL DEMAND PROJECTION- DELAYED IN CAPEX
IMPLEMENTATION
� ALTHOUGH WATER TARIFF IN JOHOR AMONG THE� ALTHOUGH WATER TARIFF IN JOHOR AMONG THE
HIGHEST, COLLECTION EFFICIENCY IS HIGH – Willingness
to Pay
� LONG TERM SUSTAINABILITY
� FASTER TOWARD FULL COST RECOVERY WATER TARIFF
CONSUMPTION PER CAPITA PER DAY
210 211 212 216 217 213 215
120.00
140.00
160.00
180.00
200.00
220.00
240.00
l /
ca
p /
d
0.00
20.00
40.00
60.00
80.00
100.00
120.00
2006 2007 2008 2009 2010 2011 2012
l /
ca
p /
d
Source Data: SAJ
NON REVENUE WATER31.54 30.79 30.07 29.74 29.88 29.18 28.63
27.76
16.00
18.00
20.00
22.00
24.00
26.00
28.00
30.00
32.00
34.00%
NR
W
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
Jan
-10
Fe
b-1
0
Ma
r-10
Ap
r-10
Ma
y-1
0
Jun
-10
Jul-1
0
Au
g-1
0
Se
p-1
0
Oct-1
0
No
v-1
0
De
c-10
Jan
-11
Fe
b-1
1
Ma
r-11
Ap
r-11
Ma
y-1
1
Jun
-11
Jul-1
1
Au
g-1
1
Se
p-1
1
Oct-1
1
No
v-1
1
De
c-11
Jan
-12
Fe
b-1
2
Ma
r-12
Ap
r-12
Ma
y-1
2
Jun
-12
Jul-1
2
Au
g-1
2
Se
p-1
2
Oct-1
2
No
v-1
2
De
c-12
% N
RW
Source Data: SAJ
COLLECTION EFFICIENCY
� This is defined as the current year revenues
collected, expressed as a percentage of the
total operating revenues for the
corresponding time period.corresponding time period.
� It is an indicator for commercial efficiency
as it measures how effectively a utility is
able to collect revenues from the services it
bills the customers.
COLLECTION EFFICIENCY
81.10%
116.27%110.99%
86.75%
107.52%
91.97%
120.58%
95.78%90.44%
111.61%
70.00%
80.00%
90.00%
100.00%
110.00%
120.00%
130.00%C
oll
ec
tio
n E
ffic
ien
cy
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Jan
-10
Fe
b-1
0
Ma
r-10
Ap
r-10
Ma
y-1
0
Jun
-10
Jul-1
0
Au
g-1
0
Se
p-1
0
Oct-1
0
No
v-1
0
De
c-10
Jan
-11
Fe
b-1
1
Ma
r-11
Ap
r-11
Ma
y-1
1
Jun
-11
Jul-1
1
Au
g-1
1
Se
p-1
1
Oct-1
1
No
v-1
1
De
c-11
Jan
-12
Fe
b-1
2
Ma
r-12
Ap
r-12
Ma
y-1
2
Jun
-12
Jul-1
2
Au
g-1
2
Se
p-1
2
Oct-1
2
No
v-1
2
De
c-12
Co
lle
cti
on
Eff
icie
nc
y
Source Data: SAJ
CONCLUSIONS� EFFECTIVELY AND EFFICIENTLY
IN MANAGING THE STAKEHOLDERS
RELATIONS IS THE KEY SUCCESS
FACTORS TOWARD ACCEPTANCE OF
WATER TARIFF.WATER TARIFF.
� STAKEHOLDERS ENGAGEMEMT IS
THE CONTINUOS PROCESS.