MANILA, Philippines - The board of trustees of the Metropolitan Waterworks and Sewerage System appointed a professor from the University of the Philippines-Diliman as the new chief regulator of the MWSS Regulatory Office.
In Resolution No. 2014-054-RO, the MWSS board approved the appointment of Joel Yu, pursuant to the authority vested on them under Article II of the MWSS bylaws and Article XI of the Concession Agreement.
Yu is an associate professor of the Cesar E. A. Virata School of Business of UP Diliman. He obtained his bachelor’s degree in economics from UP, his master’s degree in industrial economics from the University of Asia and the Pacific, and his doctorate in business administration from UP.
The MWSS-RO is responsible for setting water rates in Metro Manila, according to the Concession Agreement. It is also in charge of compelling concessionaires to follow specifications set by the MWSS in water projects, among other functions.
Yu will assume the post vacated by former acting chief regulator Emmanuel Caparas, who resigned last month.
Caparas reportedly relinquished the position to allow himself to focus on his tasks as a board member, and for the board to appoint a regular chief regulator who will be focused on the affairs of the MWSS-RO.
His decision to resign stemmed from an audit observation memorandum issued by the Commission on Audit (COA) that says that as board member, he cannot sit as chief regulator at the same time because this violates the concession agreement between MWSS and Metro Manila water concessionaires.
Caparas clarified that his departure from MWSS-RO has nothing to do with the ongoing arbitration on the decision to reduce water rates.
In September 2013, the MWSS ordered Manila Water to reduce rates by P7.24/cubic meter over a five-year period or P1.45/cubic meter per year.
Maynilad on the other hand, was ordered to slash water rates by P1.40 over five years or P0.29/cubic meter per year.
The two water concessionaires filed their respective dispute notices with the International Chamber of Commerce, where both challenged the rates determined by the MWSS-RO. Water rates remain on status quo implementation until this process is completed.