KLANG: The free water deal for Selangor consumers may not materialise as concessionaire Syarikat Bekalan Air Selangor (Syabas) and the state government are unable to come to an agreement.

Syabas chief executive officer Datuk Ruslan Hassan said in a statement that the company and state investment arm Kumpulan Darul Ehsan Bhd (KDEB) could not agree on “terms and conditions” over how the free water was going to be compensated.

Ruslan said Syabas could not accept KDEB’s offer to compensate the company for the free water in September after the proposed restructuring of water services in the state.

The proposal, he said, would adversely affect the water concessionaire’s cash flow and daily operations.

Syabas, he added, was also of the opinion that the proposed free water by the state government “had nothing to do with the restructuring programme in the state”.

Ruslan said Syabas had made an offer to KDEB to bill the state at the end of every month and payment to be made within 14 days after that.

KDEB’s failure to meet this requirement would result in Syabas having to scrap the free water plan.

He said Syabas would continue to issue monthly water bills and charge for the first 20 cubic metres of water until it received favourable terms from KDEB.

Ruslan said Syabas received letters and documents on the instruction to give rebates from KDEB yesterday. The letters were signed on June 6.

Selangor Mentri Besar Tan Sri Khalid Ibrahim had assured consumers in the state recently that the water rebate, which was to take effect on June 1, was still on and that it would be reflected in this month’s water bill.