MANILA, Philippines – The Metropolitan Waterworks and Sewerage System (MWSS) board of trustees has adopted a resolution directing its regulatory office to study imposing penalties on Ayala-led Manila Water.

MWSS Chairman Franklin Demonteverde and Administrator Reynaldo Velasco made public the details of Resolution No. 2019-052 on Friday, March 29, which also seeks to look into the possibility of suspending the increase in water rates following the water shortage that affected thousands of consumers in the east zone of Metro Manila. 

The penalties will be in consideration with Manila Water’s failure to comply with its concession agreement, particularly on providing a consistent supply of water to residents.

Under the concession agreement, Manila Water is mandated to provide uninterrupted water services to its customers. 

As of Thursday, March 28, water service availability has been restored to 98.1% in Manila Water concession areas. The target is to reach 99% by the end of March. 

The MWSS earlier said that the agency cannot impose penalties as it is not stipulated in the concession agreement. It is only limited to preventing Manila Water from passing on the expenses of activities Manila Water made to address the crisis. (READ: MWSS, utility firms to secure enough water supply in 50-year plan)

While Manila Water has not been handed down a penalty yet, the company already voluntarily imposed a one-time waiver scheme on minimum charges for all its affected customers in Metro Manila and Rizal.

“I would like to emphasize that this is just a voluntary act by Manila Water done in good faith. The MWSS board tasked me to work with them so we gave inputs to see what else could be done to assuage the affected consumers,” Velasco said. – Rappler.com