Water rate hikes will welcome consumers in 2023 with the approval of a staggered 5-year rate adjustment by the Metropolitan Waterworks Sewerage System-Regulatory Office.
Beginning 2023, water consumers of Metro Manila should expected water rate hikes, which regulator—Metropolitan Waterworks and Sewerage System—approved recently to come in tranches.
Manila Water will implement an P8.04 per cubic meter increase in 2023, P5 per cubic meter in 2024, P3.25 per cubic meter in 2025, P3 per cubic meter in 2026, and P1.08 per cubic meter in 2027, said business blog site, Bilyonaryo.
Environmental change will rise to 25 percent from 20 percent starting 2023, and further to 30 percent starting 2026, while sewer charge will increase to 32.85 percent from 30 percent subject to Manila Water’s attainment of sewer coverage of 30 percent by the end of 2025.
As for Maynilad, a rate hike of P3.29 per cubic meter will be implemented for next year, P6.26 in 2024, P2.12 in 2025, and P1.01 for 2026 and 2027.
Environmental charge will increase to 25 percent from 20 percent starting January 2025, subject to Maynilad’s attainment of sewer coverage by end-2024.
Customers of Maynilad consuming 10 cubic meters would see a P5.28 increase in their monthly bills, P20.29 for those consuming 20 cubic meters, and P41.71 for those consuming 30 cubic meters, from the adjustments.
The adjustments will translate to a P41.19 increase in the monthly bills of customers consuming 10 cubic meters, P91.53 for those consuming 20 cubic meters, and P187.01 for those consuming 30 cubic meters.
“These rate adjustments will enable Manila Water and Maynilad to provide the highest quality of water, sanitation, and sewerage services that their customers deserve,” the MWSS said.
“These include the development of additional water sources that will ensure continuous improvements in the supply of safe drinking water as well as the expansion of environmentally safe wastewater services within the concession areas,” it added.
The rate rebasing is a periodic performance review and general tariff adjustment, which sets the maximum rates that the concessionaires may charge for their services at a level that will allow them to recover over the life of the concession their investment, capital, operating, and maintenance expenditures prudently and efficiently incurred and to earn a rate of return on these expenditures.
METER CHECKING. A man checks his water meter in Barangay Roxas District, QC after the Metropolitan Waterworks and Sewerage System-Regulatory Office approved the water rate adjustments, beginning next year, for concessionaires Manila Water and Maynilad. Danny Querubin
Passing on penalties to consumers
It must be recalled that last October, the Supreme Court penalized MWSS, Manila Water and Maynilad worth P202 million for violation of the Clean Water Act because they failed to install and maintain wastewater treatment facilities within five years from 2004. The previous year, the fine imposed was P921 million.
Could the increase be due to the penalties, which MWSS and the concessionaires are passing on to the consumers, asked several netizens.
MWSS ok's staggered water rate hikes in 5 years
The MWSS-Regulatory Office said that the environmental charge to increase from 20 percent to 25 percent starting 2023 and from 25 percent to 30 percent starting 2026, and sewer charge to increase from 30 percent to 32.85 percent starting 2023 is subject to Manila Water's attainment of sewer coverage of 30 percent by the end of 2025.
As for Maynilad, MWSS approved the concessionaire's proposed rate adjustment of P3.29 hike for 2023, P6.26 for 2024, P2.12 for 2025, P0.84 for 2026, and P0.80 for 2027.
Starting 2024, the implementation of the staggered rebasing convergence adjustment shall be subject to Maynilad's attainment of water supply, continuity, and coverage targets provided in its 2022 Approved Business Plan, as determined by the MWSS RO.
"These rate adjustments will enable Manila Water and Maynilad to provide the highest quality of water, sanitation, and sewerage services that their customers deserve. These include the development of additional water sources that will ensure continuous improvements in the supply of safe drinking water as well as the expansion of environmentally safe wastewater services within the Concession Areas," said MWSS Chief Regulator Patrick Lester Ty in a statement.
The MWSS RO held a rate rebasing public consultation drive from November to December 2021 to inform partner Local Government Units (LGUs) on the completed and ongoing projects, programs, and plans of the concessionaires; and solicit valuable inputs from LGUs that may be incorporated in the business plans of the concessionaires to address prevailing issues and concerns of stakeholders on water, sewerage, and sanitation services, and for exploring good practices in providing these services.
"The office assures the public that it remains relentless in protecting their interest and welfare, and that it is committed to upholding transparency, accountability, and citizen participation in governance," Ty said.
Manila Water earlier said the rate adjustments would fund its proposed five-year capital expenditure plan of P181 billion.
Meanwhile, Maynilad will implement a rate increase of P3.29 per cubic meter in January. This means residential customers who consume 10 cubic meters a month will see their bills increase by P5.28 to P135.70, from P130.42 in January 2022.
Households that consume 20 cubic meters and 30 cubic meters should expect monthly bills to go up by P20.29 to P509.11 (from P488.82 a year ago) and by P41.71 to P1,039.64 (from P997.93), respectively.
For the succeeding years, Maynilad will implement a P6.26 rate hike in 2024 and P2.12 hike in 2025. If there is no new water source, rates will rise by P0.84 in 2026 and P0.80 in 2027.
Maynilad said in a stock exchange disclosure the rate adjustments for 2026 and 2027 would depend on the company’s completion of the Kaliwa Dam project, which will serve as a new source of water. If the project is completed, rates will rise by P1.01 in 2026 and 2027.
Rate rebasing is done every five years, accompanied by a performance review and validation of the two companies’ projected cash flows. It also sets the water rates in a manner that allows the water suppliers to recover their expenditures, said Business World.
Tags: #waterratehikes, #MWSS-RO, #Maynilad, #ManilaWater