KUALA LUMPUR, June 29 (Bernama) -- The Energy, Water and Communications Ministry is still looking into Puncak Niaga Holdings Bhd's request for 15 per cent water tariff hike, its minister Datuk Seri Dr Lim Keng Yaik said.

Puncak Niaga submitted the proposal for 15 per cent tariff hike for various categories to the government in November last year with the increases supposed to be put in place on Jan 1, 2006, under an earlier concession agreement.

The company via its 70 per cent owned subsidiary, Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), holds the water supply concession for Selangor besides supplying treated water to Kuala Lumpur and Putrajaya.

However, to date, the government has not make any final decision on the request, which if approved, will affect more than seven million water consumers in the Klang Valley.

"The ministry is still looking into it. No decision yet," Dr Lim told Bernama when contacted here today and refused to give any hint when the government would make the final decision.

He was asked on the comment by Puncak Niaga's executive chairman Tan Sri Rozali Ismail yesterday that the company deserved the hike as it has been working very hard.

The company on numerous occasions had highlighted its request for the hike under the agreement but government replied that there was no automatic increase if the concessionaire failed to meet the benchmark set by the government.