Looming water hikes support investments

Looming water hikes support investments | Daily Tribune

The Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO) has approved water rate increases for concessionaires Manila Water Company Inc. and Maynilad Water Services Inc., starting next year.

At a media briefing on Thursday, MWSS-RO chief regulator Patrick Lester Ty said the adjustments are necessary to support critical investments that will maintain and enhance water service quality for consumers.

“If we do not invest here, we will not be able to maintain the quality of service to consumers. If you notice, this year, we did not have significant water service interruptions because of Manila Water and Maynilad investments in new water sources, pipe replacements, reduction of non-revenue water, and wastewater treatment,” Ty said.

“As long as they spend a reasonable percentage of their capex, we will allow them to raise tariffs,” he added.

The regulatory body approved the hikes after reviewing the concessionaires’ actual capital expenditures for 2023 to 2024.

Manila Water spent P32.668 billion, or 81 percent of its target, while Maynilad utilized P47.591 billion, achieving 83 percent of its planned investments during the period.

Substantial increases

For residential customers of Manila Water, the tariff will rise by P5.95 to P61.04 per cubic meter.

Low-income lifeline customers consuming less than 10 cubic meters monthly will see an increase of P2.87 in their bills while regular residential customers consuming 10, 20, or 30 cubic meters will face increases of P24.68, P54.79, and P111.83, respectively.

Maynilad customers will experience a tariff hike of P7.32 per cubic meter, bringing the average rate to P65.62 per cubic meter.

Lifeline customers consuming less than 10 cubic meters monthly will pay an additional P10.56, while regular residential customers consuming 10, 20, or 30 cubic meters will see monthly bill increases of P20.08, P75.89 and P155.32, respectively.

The approved adjustments exceed the scheduled rate hikes under the 5th rate rebasing conducted in 2022, which initially planned increases of P3.25 per cubic meter for Manila Water and P2.12 per cubic meter for Maynilad.

To alleviate the impact on low-income consumers, the MWSS-RO expanded its lifeline program to include those consuming above the 10-cubic-meter threshold, provided they are registered under the government’s Pantawid Pamilyang Pilipino Program with their respective water service providers.