New consumers group targets water rate hikes

One of the consumers who earlier filed a class suit against the water rate increase implemented by the Metro Cebu Water District this month is forming a new group of water consumers in Metro Cebu to gain support for the case.

Deolito Alvarez started the registration last week at the Redemptorist Social Action Center of interested consumers who wish to join with the MCWD consumers association. Alvarez said it will incorporate very soon and will be registered as a non-stock non-profit organization.

Alvarez invited all civic-minded consumers to join the association and support the pending case he and other concerned consumers filed against MCWD's rate increase. Alvarez was prompted to organize the consumers group after the utility firm questioned their personality to file a class suit.

MCWD, in their motion asking the court to dismiss the application for temporary restraining order by the group of Alvarez, said that the group has no personality to represent the 107,000 water consumers in Metro Cebu in a class suit.

The court has yet to rule on the petition after the scheduled hearing last week was postponed because of the failure of the Local Water Utilities Administration to appear. Regional Trial Court judge Gilbert Moises has set another hearing of the petition on July 26 in the afternoon.

Alvarez and four other consumers in their petition for injunction claimed that the 12-percent new water rates increase implemented by MCWD effective July 1 was illegal because the Local Water Utilities Administration, which granted the increase, has no authority. Alvarez said that the authority is vested on the National Water Resource Board and not with LWUA.

But, MCWD lawyers said that the application for TRO should be dismissed for failure of the petitioners to exhaust the administrative remedy. According to them, it is a settled rule that before a party may seek the intervention of the courts, she should first avail of all the means afforded by the administrative processes.

They also accused the petitioners of only raising the issue after 11 months since the recent rates increases were approved. MCWD said that the proposed rates increases were presented in a public hearing several times early last year within their franchise area.

MCWD further claimed that the group of Alvarez has no right to ask for the issuance of a TRO or injunction because they failed to establish that they have rights violated by the defendants because of the increase. They claimed that the filing of a taxpayer's suit is allowed only when one sues based on a claim that public funds are illegally disbursed or that public property is improperly spent or wasted.

MCWD said that the action does not involve improper disbursement of public funds. The utility firm likewise claimed that the petitioners failed to show that they will suffer great and irreparable injury which cannot be adequately compensated unless a TRO is issued by the court.

On the contrary, MCWD said they will stand to sustain great and irreparable damages in case a TRO is issued because it does not receive a single cent from the national government as subsidy.

MCWD lawyers said that the firm is relying on its water sales to finance all of its operations and infrastructure projects.

Issuing a TRO and stopping the rates increases in September last year and this month is detrimental to the services of the water district since it will reduce its expected revenues by more than 25 percent or P500,000 a day. - Fred P. Languido