Friday, October 1, 2010

#Update* PBA hits RM1 in early trade, higher tariffs by Nov 1

KUALA LUMPUR: Shares of Penang water operator PBA hit RM1 in early trade on Friday, Oct 1, underpinned by a decision to raise the rates for trade consumers by 27% with effect from Nov 1.

At 9.06am, it was up seven sen to RM1 with 519,900 shares done.

The FBM KLCI was up 3.68 points to 1,467.18. Turnover was 24.05 million shares valued at RM20 million. There were 84 gainers, 44 losers and 101 stocks unchanged.

On Thursday, the Penang Water Supply Corporation Sdn Bhd announced that trade consumers will have to pay 27% more for water. Trade consumers who account for 60% of its revenue.

The increase comes on the heels of the announcement made by PBAPP chairman, Chief Minister Lim Guan Eng last week of a water conservation surcharge to be imposed on domestic users using above 35,000 litres per month. The last water tariff review for trade and domestic users was on Jan 1 2001.

The new tariff for trade consumers will increase from 52 sen to 66 sen for the first 1,000 liters for the first 20,000 liters, 70 sen to 89 sen for the next 20,000 liters, from 90 sen to 1.15 for more than 40,000 to 200,000 liters and more than 200,000 liters from RM1 to RM1.27.

Trade consumers using excessive water supply will see an increase from RM1.20 to RM1.52 while shipping trades will see an increase from RM2 to RM2.54.

This increase could see a rerating for the laggard PBA which has been in the doldrums since its listing.


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