DENR mulls water subsidy reforms

The Department of Environment and Natural Resources (DENR) is considering reforms to the current water rate subsidy program for

low-income households.

On Thursday, DENR Undersecretary Carlos Primo David, who also heads the Water Resource Management Office (WRMO), suggested that the existing blanket subsidy could be replaced with a more targeted approach.

Currently, the subsidy applies to consumers using up to 10 cubic meters (cu.m.) of water monthly.

David explained that the evaluation was prompted by data indicating that some low-income families consume more water than their higher-income counterparts, often exceeding the current subsidy limit of 10 cu.m.

This data was collected from approximately 3,000 customers of Maynilad and Manila Water from their water bills for February and March.

“We used to think that if a household is low income, water use is only minimal as they do not have washing machines, cars to clean, or gardens to tend to. But in truth, when we did our study, it seems that many low-income households also utilize more water than 10 cubic meters per month,” David said.

“The reason behind this is many of our low income households only have one home but they are an extended family.”

One of the potential changes being considered is automatically granting water rate subsidies to households participating in the Pantawid Pamilyang Pilipino Program (4Ps), the government’s flagship poverty alleviation initiative.

David highlighted that this shift aims to more accurately target those in need, recognizing that water usage patterns vary among low-income families due to factors such as larger household sizes.

Currently, Maynilad reported that 25 percent of its total billed consumers are lifeline customers.