MCWD won’t raise water rates

The Metropolitan Cebu Water District clarified that it will not be joining other water districts in seeking a rate increase amid the weakening of peso and series of oil price hikes.

Terry Andaya, MCWD public affairs manager, said the water district has no plan yet to increase its water rates.

She explained that although the MCWD has already applied for a three-year increase that was approved by the Local Water Utilities Administration in 2006, the water district could not implement it automatically because it is tied to the Carmen Bulk Water Project.

MCWD is supposed to begin imposing a 12-percent increase each year for three years schedule in 2007 to pay for water supplied by the Carmen water project.

But Andaya said since the negotiations with the Ayala consortium - the proponent of the project - were stopped, they will likewise defer the implementation of the increase.

“We will let the consumers know if we have plans to increase, and it will definitely undergo a public consultation,” Andaya told The Freeman.

She said that like the other water providers, MCWD is also affected by the current economic situation but it is trying its best to adjust without passing on the burden to its consumers.

Just this weekend, Metro Manila’s two water service concessionaires, Manila Water and Maynilad, announced their plan to increase their rates effective July because of the weakening of the peso.

Manila Water will increase its rates by P0.21 per cubic meter, while Maynilad said it will hike its rates by P0.22 per cubic meter.

The increases in rates come as the two concessionaires said they would adjust their Foreign Currency Differential Adjustment or FCDA, which allows them to regain lost revenues or give rollbacks to consumers on how the peso fares against foreign currencies.

The water companies also warned of more rate increases if the peso continues to weaken against the dollar. — Wenna A. Berondo/LPM