SC asked to stop water rate hike

MANILA, Philippines - Several groups has askedthe Supreme Court (SC) to stop the impending water rate increases to be implemented by the Manila Water Co. and Maynilad Water Systems Inc.

In a petition for certiorari and prohibition, the Water for All Refund Movement (WARM), Water Watch Coalition Inc. and Alyansa ng Mamamayang Naghihirap Inc. (Almana) argued the two water concessionaires is pushing through with the plan despite opposition from stakeholders and failure to justify the increases during earlier public consultation.

The petitioners urged the high court to “declare that respondents are public utilities subject to the rules and regulations of public service laws and the auditing powers of the Commission on Audit.”

The groups said Maynilad and Manila Water seemed to have too much “sovereign power” in water infrastructure projects, which they allegedly use to justify higher water rates.

The petitioners said the water concessionaires are “overbilling” or making “advance collections” to fund water infrastructure projects whose construction has yet to be completed or had been mothballed.

They cited the Laiban Dam project where the two firms had supposedly collected over P6 billion since it was implemented in 2008.

The Manila Waterworks and Sewerage System (MWSS) had initiated the P50-billion Laiban Dam project to supply water and not to generate electricity like in other dams in Luzon. The dam was supposed to stand 113 meters high and would have had a reservoir to cover 28,000-hectares of land.

The groups said some P170 million had already been collected from water consumers

for the re-opening of another dam, the Wawa Dam, a dam constructed over the Marikina River but whose operations were discontinued after the construction of the Angat Dam.

They said water consumers should not be made to shoulder costs for the construction water facilities like the dams in advance.

Under the proposed hiked water rates to be implemented next month, Manila Water would charge P5.83 more per cubic meter, while Maynilad would increase water rates by 8.52 per cubic meter.