PCC, NWRB hold dialogue on strengthening water distribution regulation

The Philippine Competition Commission (PCC) and the National Water Resources Board (NWRB) held a strategic policy dialogue on 11 June in Quezon City to explore regulatory reforms and competitive strategies in the country’s water distribution sector.

The discussion centered on the findings of a recent PCC market study that identified key issues affecting the sector, including limited consumer choice, high switching costs, and the complexities of promoting competition in what is largely a natural monopoly.

PCC economists Elizabeth B. Udaundo and Jose Vivaldi S. Ericta presented the study’s salient points during the meeting. While they acknowledged that expanding consumer options remains challenging due to infrastructure and resource limitations, they emphasized the need to improve regulatory efficiency and promote consumer welfare.

NWRB, for its part, shared that efforts are already underway to boost transparency and accountability through stricter tariff regulation, performance monitoring, and audit mechanisms.

Both agencies also explored global best practices, particularly retail competition models in more developed countries, and discussed how these could potentially inform policy innovation in the Philippine context. They stressed the importance of balancing sustainability with fair access to essential water services.

The dialogue highlighted the realities of water distribution under the current regulatory framework, which typically mandates a single distributor in designated service areas. However, both agencies expressed openness to exploring alternative models that promote efficiency and consumer protection.

“The PCC remains committed to working with key regulatory agencies in fostering a competitive and efficient regulatory environment,” the Commission said in a statement. “Through its engagement with the NWRB, the PCC seeks to ensure that reforms in the water sector uphold consumer welfare while promoting a level playing field for service providers.”

Among those who participated in the dialogue were PCC Commissioner Marah Victoria S. Querol, Acting Directors Carlos L. Vega and Kirsten J. Dela Cruz from the PCC Economics Office, NWRB Deputy Executive Director Geraldine DC. Ramos, and Engineer Fritz Caroleene G. Ramos of NWRB’s Policy Formulation Section.

The agencies said the policy exchange was just the beginning of a broader push for long-term reforms in water distribution and regulation, in line with the government’s goals for equitable access and service quality.