The Metropolitan Cebu Water District (MCWD) confirmed Thursday that residential water bills will increase by P23 effective April, following an authorized adjustment from the Local Water Utilities Administration.

The new tariff structure raises the minimum charge for a standard residential connection to P259.16, up from the previous rate of P235.60.

In response to the hike, newly appointed MCWD general manager John DX Lapid said the district is moving to cut operational costs by shifting to more affordable water sources.

Lapid disclosed a plan to pivot toward groundwater development to reduce the agency’s reliance on expensive bulk water suppliers.

“We will revive the Water Sourcing Committee and prioritize the expansion of deep wells,” Lapid said.

He cited that deep wells can produce water at approximately P15 per cubic meter, significantly lower than the P73 per cubic meter charged by some bulk water providers.

Rather than purchasing new land, the district plans to partner with local government units and private entities to develop these groundwater sources.

Lapid explained that lowering production costs is essential to cushioning consumers from the impact of future rate increases.

The district is also grappling with significant financial leaks. MCWD currently loses approximately 90,000 cubic meters of water daily — valued at about P6 million — due to illegal connections, inaccurate metering, and physical leaks. Lapid committed to prioritizing the reduction of this non-revenue water.

While MCWD reported deficits earlier this year, Lapid said those losses have begun to narrow. The agency aims to return to a positive financial position before the end of 2026.