MWSS approves new Metro Manila water rates

MANILA, Philippines – Customers of the two Metro Manila water concessionaires will see changes in their bills soon, after the regulator approved adjustments in the current water rates effective June 1.

The Metropolitan Waterworks and Sewerage System (MWSS) approved in a board meeting the reduction in Manila Water Company Incorporated’s tariffs and a raise in Maynilad Water Services Incorporated’s rates.

Manila Water rates down

For Manila Water, MWSS said in a statement it approved an average of P0.63 ($.014) per cubic meter (/cu.m.) reduction in the concessionaire’s P25.88 ($.583)/cu.m. basic water charge.

“The rate adjustment for Manila Water is the net effect of the implementation of the annual inflation adjustments that were suspended for 2014 and 2015, the provisional rate increase of 3.2% in 2013, and the implementation of the Final Award in the arbitration between MWSS and Manila Water,” the regulator explained.

The Ayala-led water concessionaire lost its arbitration proceedings against the MWSS after it was ordered to cut its basic water charge.

In September 2013, MWSS ordered Manila Water to cut its rates by P1.45 ($.033)/cu.m. But the water company, including Maynilad, said it will pursue legal options to assert the provisions in their contracts on rate-rebasing.

Thus Manila Water disputed the rate reduction before the International Chamber of Commerce (ICC).

The ICC appeals panel though slashed Manila Water’s basic water charge by 11.05%, equivalent to a decrease of P2.77 ($0.0623)/cu.m. 

The basic water charge reduction would be staggered for 3 years.

A reduction of P1.66 ($0.037 /cu.m. would be implemented this year; P0.55 ($0.012)/cu.m. in 2016; and P0.55 ($0.0124)/cu.m. in 2017.

Manila Water is the concessionaire for the east zone of Metro Manila, covering the requirements of 23 cities and one municipality.

Maynilad rates up

Meanwhile, an increase of P1.35 ($.030)/cu.m or an upward adjustment of 4.19% in Maynilad’s P31.25 ($.704)/cu.m. basic water charge was also approved by the MWSS. 

The rate adjustment in Maynilad’s water charges, according to MWSS is attributed to two factors. 

“One, a 7.52% increase in the average basic charge or P2.35 ($.053)/cu.m. due to the implementation of the annual inflation adjustments that were suspended for 2014 and 2015,” MWSS said in its statement.

“Two, a decrease in water charges due to the discontinuance of the P1 ($.022)/cu.m. Currency Exchange Rate Adjustment.”

 Maynilad caters to the needs of 17 cities in the west zone.

Changes in water bills

The MWSS Regulatory Office said that Maynilad and Manila Water will publish the adjusted rates in compliance with the requirement of the MWSS Charter. 

“Rates and fees shall be effective and enforceable 15 days after publication in a newspaper of general circulation. The adjusted rates are seen to take effect in June 2015,” MWSS said.

The MWSS Regulatory Office estimated that the monthly bill of Manila Water customers will go down by about P2 ($.045). 

“Those consuming 10 cubic meters per month can expect their monthly water bills to decrease by P3.30 ($.074). The bills of customers with monthly usage of 20 cubic meters per month and 30 cubic meters per month will decline by P7.30 ($.164) and P14.90 ($.335), respectively.”

For Maynilad customers, MWSS said their monthly bill will go down by P5.45 ($.123) per month. 

“In contrast, the monthly bills of those consuming 20 cubic meters per month and 30 cubic meters per month are seen to rise by P3.37 ($.076) and P21.56 ($0.485), respectively,” MWSS added. –Rappler.com

$1 = P44.40