Solon: Water rate hike 'anti-people'

MANILA, Philippines - A party-list representative has denounced the proposed increase in the rates of water concessionaires, Maynilad and Manila Water, calling the hike as "anti-people and unconscionable."

 

Gabriela Party-list Rep. Luzviminda Ilagan said basic utilities such as water services should be within the reach of the ordinary consumer, especially the poor.

 

"For many poor families who are living below poverty line, that is highway robbery. Services should in fact be made affordable by government, serbisyo, hindi negosyo," Ilagan said in a statement.

 

Maynilad, owned by DMCI Holdings, Inc. and the Metro Pacific Investments Corporation, is increasing its rates by P8.25 per cubic meter, while Manila Water of Ayala Corporation is proposing a much lower rate increase. The rate hike can be translated to P250 a month increase per household. 

 

"This is anti-people and an agreement should not have been allowed. And now, government should intervene to make the rates within the reach of the ordinary consumer," the lady solon said.

 

The two water utilities allegedly asked for another increase because the concession agreement allows an increase every five years. They claim they need capital for projects to supply more water to Metro Manila. 

 

"It is not a justifiable reason to allow runaway rates, simply because there is a concession agreement," Ilagan said.

 

In 1997, the Maynilad was granted a 25-year exclusive concession by the national government, through the Metropolitan Waterworks and Sewerage System, to operate, maintain and invest in the water and sewerage system in Caloocan, Las Piñas, Malabon, Manila, Muntinlupa, Navotas, Pasay, Parañaque, Valenzuela, parts of Quezon City, part of Makati; the cities of Bacoor, Cavite and Imus, and the municipalities of Kawit, Noveleta and Rosario in the province of Cavite.

 

On the other hand, Manila Water serves over six million customers in its concession area, which includes parts of Quezon City, Makati, Taguig, Pateros, Marikina, Pasig, San Juan, Mandaluyong, the Southeast part of Manila and Rizal province.

 

Advance charges?

 

Ilagan also said the two water firms are collecting in advance charges for water that they have yet to supply to their customers. 

 

"Then they will charge the customers again for water consumed when the water comes flowing which results to double charging," she said.

 

Earlier, several groups also asked the Supreme Court to stop the impending water rate increases to be implemented by the two firms. Related story: SC asked to stop water rate hike

 

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 claimed that around P170 million had already been collected from water consumers for the re-opening of a dam, the Wawa Dam, and another dam constructed over the Marikina River but whose operations were discontinued after the construction of the Angat Dam.

 

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