Good news! Water bills will be reduced this March with the removal of 12 percent value added tax. Bad news: water supply will be very tight this dry season with the low water level of Angat, major supplier to Metro Manila, and the absence of rain will further reduce the supply.
NOW that the value added tax of 12 percent has been removed, consumers can expect lower water bills starting this March, according to the Metropolitan Waterworks and Sewerage System.
The MWSS-Regulatory Office said customers’ bills will instead include a 2 percent national franchise tax and the actual rate of the local franchise tax.
“These changes will result in a reduction in Maynilad and Manila Water customers’ monthly water bills,” MWSS Chief Regulator Patrick N. Ty said at a virtual briefing.
New franchises
This after Manila Water and Maynilad were granted new legislative franchises to maintain and operate the waterworks systems in their respective concession areas.
“If you have a franchise, you are subject to the franchise tax instead of VAT,” Ty said, noting the tax rate is determined by local government units (LGUs).
These changes will be reflected as “government tax,” which will range between 2 percent and 2.85 percent depending on the LGU.
Staring March 21
Ty said Manila Water and Maynilad customers will see these changes in their bills starting March 21, the date of the effectivity of the two companies’ legislative franchises.
If the government tax rate is at 2 percent, Maynilad customers consuming 10 cubic meters (cu.m.) will pay P118.78 a month, which is P11.64 less than their current P130.42 monthly bill with the 12 percent VAT.
On a government tax rate of 2.825 percent, customers will pay P119.74 a month, a reduction of P10.68 from the previous bill.
Maynilad customers using 20 cu.m. a month will see a reduction of between P40.04 and P43.64 in their bills, while those using 30 cu.m. will pay P81.75 to P89.10 less every month.
Manila Water customers using 10 cu.m. every month will pay P138.40 if the government tax rate is 2percent, and P138.83 if the rate is 2.825percent, reflecting an average reduction of P12 from the current P151.22 bill.
Low-income households in the Manila Water concession area will see an average reduction of P7 in their monthly bills, while those consuming 20 cu.m. will pay around P27 to P28 less a month. Customers using 30 cu.m. will see bills lowered by P55 to P57 a month.
“The MWSS remains committed to ensuring the availability, accessibility, and affordability of water supply in the East and West Concession Areas,” the agency said.
Maynilad supplies water to customers in the west zone, comprised of Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, Malabon, Manila, Makati, and Quezon City, as well as parts of Cavite province.
Manila Water provides water and wastewater services in the east zone of Metro Manila, which includes Marikina, Pasig, Taguig, Makati, San Juan, Mandaluyong, portions of Quezon City and Manila, and Rizal province.
Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.
Contingency measures
The Department of Environment and Natural Resources (DENR) said it is working on contingency measures for the dry season amid low water levels at Angat Dam, and is currently considering water use efficiency measures, cloud seeding, increasing reliance on treated water, and tapping deep wells.
The DENR and the National Water Resources Board (NWRB) are working on plans to ensure adequate supply for irrigation and domestic use in areas served by Angat, Metro Manila’s main water source, the department said.
“The NWRB will be in the forefront of monitoring the water level of the Angat Dam and putting contingency measures in place. While we are experiencing low water levels in the Angat Dam, the NWRB has already (moved) to solve the looming problem,” DENR Officer-in-Charge Secretary Jim O. Sampulna said.
Angat Dam in Norzagaray, Bulacan supplies 97 percent of Metro Manila’s water requirements.
“The domestic water allocation of 48 cubic meters per second (cms) will be retained in March,” NWRB Executive Director Sevillo D. David, Jr. said. “Having a sufficient water supply helps control the spread of coronavirus.”
Shallow tube wells
The DENR is also working with the National Irrigation Administration on the use of shallow tube wells to make irrigation more efficient.
“We are using what they call shallow tube wells to enable farmers to optimize water coming from creeks and canals,” David said.
Cloud seeding will be conducted around the Angat Dam, Bustos Dam, and La Mesa Dam, between March 7 and April 10.
“This endeavor is in coordination with the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA). We decided to conduct the cloud seeding operations this March due to the right weather conditions and after the amihan or northeast monsoon season,” David said.
Water concessionaires Manila Water Company, Inc. and Maynilad Water Services, Inc. are also working on ways to maximize the water available to them.
“We continue to improve our system readiness through the operation of our line boosters, network pressure management, maximization of our distribution reservoirs and regular maintenance of our facilities to prevent any downtime,” Manila Water said in a statement.
“While we work with the MWSS and NWRB on providing the needed supply, we also encourage consumers to use water responsibly so we can maximize the available supply and avoid wastage,” Maynilad added in a separate statement.
Tags: #waterbills, @tightsupply, #nomore12%VAT, #legislativefranchise, #water