MANILA, Philippines - Ayala-led Manila Water Co. Inc. has filed a dispute notice with the International Chamber of Commerce to challenge the rate reduction recently implemented by the Metropolitan Waterworks and Sewerage System (MWSS).
“Manila Water has decided to go into arbitration after MWSS, in its decision, cut away significant programs for building and maintaining water and wastewater systems in the East Zone which will severely compromise and impair the former’s ability to fulfill its service obligations to customers,†said the company in a statement.
Average basic water rates will go down starting next month after the Metropolitan Waterworks and Sewerage System (MWSS) Regulatory Office denied the petitions filed by water concessionaires Manila Water and Maynilad Water Services to hike rates.
The MWSS board has approved a 29.47 percent downward adjustment on Manila Water’s 2012 average basic water charge of P24.57 per cubic meter which will be implemented in five equal tranches of -5.894 percent per year. Manila Water proposed a basic rate increase of P5.83 per cubic meter.
The MWSS board has likewise approved a negative adjustment of 4.82 percent on Maynilad’s 2012 average basic water charge of P30.28 per cubic meter, which will be implemented in five equal tranches of -0.964 per charging year. Maynilad requested for an P8.58 per cubic meter rate hike for 2013 to 2018.
MWSS acting chief regulator Emmanuel Caparas said the MWSS board decided to approve the downward adjustment in water rates as the two firms were unable to justify the need for higher rates based on their business and investment plans for the next five years.