Water firms seeking rate hike

MANILA, Philippines - Water concessionaires Maynilad and Manila Water are seeking an increase on their basic charges starting next month.

Maynilad, which services 17 cities and towns of Metro Manila and nearby Cavite province, is seeking a P8.58 per cubic meter rate hike.

On the other hand, Manila Water, which is servicing eastern Metro Manila, is asking for an additional P5.83/m3 on their basic charge.

Metropolitan Waterworks and Sewerage System (MWSS) deputy administrator for Customer Service Vincent Yambao said the proposed rate hikes will, however, still have to be discussed within the week.

Yambao said the MWSS board will decide on the proposed rate hikes.

He said there is a need for Maynilad, for instance, to justify the rate increase.

“There is a need for them to make a clear report of the audit of their expenses for the last five years, including producing supporting documents. Apart from this, they will also have to show their investment plan for the next five years and even come up with income estimates,” Yambao explained.

Yambao said a public hearing on the proposed water rate hike made by Maynilad was conducted yesterday at the Philippine Trade and Training Center (PTTC). He said a series of consultations will follow.

On the proposed rate hike of Manila Water, Yambao said it would still have to be discussed in a different venue within the week.

Militant groups led by the Bagong Alyansang Makabayan staged a rally at the PTTC building to protest the proposed water rate hike.

Bayan said the looming water rate hike means profit for the two water concessionaires.

“This only proves that any schemes under the guise of privatization will only benefit big local and foreign businesses,” they said.

Gabriela party-list Reps. Luzviminda Ilagan and Emmerenciana de Jesus said any pending petition for water rate increase should be suspended or junked until the 15-year privatization contract between the MWSS and private concessionaires Maynilad and Manila Water is subjected to a thorough review.

De Jesus and Ilagan said consumers have been at the losing end of the privatization deal.

They said initial studies made by the Water for the People Network reveal that if these rate hike proposals are adopted in full, water rates for households consuming 30 cubic meters will go up between P200 to P400 per month. – Paolo Romero