MWSS chief grilled over vague remarks on Manila Water penalty

MANILA, Philippines — Senators grilled Metropolitan Waterworks and Sewerage System (MWSS) chief regulator Patrick Ty over his previous statement that his agency does not have the authority to penalize Manila Water.

The MWSS earlier confirmed that Manila Water violated its obligation to provide uninterrupted water service to its customers in the east concession zone.

In a House committee hearing earlier this week, Ty said the MWSS cannot impose fines or penalties against the Ayala-led water concessionaire.

Senate President Vicente Sotto III and Sen. Grace Poe asked for clarification on Ty's earlier remarks during a Senate hearing into the water shortage in Metro Manila on Tuesday.

Sotto read an excerpt of the concession agreement between the MWSS and Manila Water which stated that: "A failure by the concessionaire to meet any service obligation which continues for more than 60 days or 15 days in cases where the failure could adversely affect public health or welfare after written notice thereof from the regulatory office to the concessionaire shall constitute a basis for the regulatory office to assess financial penalties against the concessionaire."

Parts of Metro Manila and Rizal province experienced low water pressure to no water for more than a week, which the private concessionaire attributed to high demand and low water level at La Mesa Dam, its alternative water source.

"You were saying yesterday that your interpretation is a little different so we're giving you a chance now to clarify your statements because it seems to me that you are not versed with your own regulations," Poe told Ty.

The MWSS chief apologized to the Senate panel for failure to articulate himself during the House committee hearing the day before.

"What happened was that I was trying to explain to the Congress at the time was that I do not have the power to impose fines," Ty said.

Ty added that under normal circumstances, the MWSS usually imposes financial penalty during rate rebasing, which is done every five years, which has been the protocol for the last 20 years. The next rate rebasing is set on 2022.

However, there is no provision that prohibits the MWSS Regulatory Office from imposing the penalty earlier.

Citing the concession agreement, Ty said, "All penalties received by the regulatory office pursuant to this section 10.4 shall be rebated to customers... This is affected by the concessionaire's failure to meet service obligation in such manner as the regulatory office deems appropriate."

In response to Ty, Poe said the public would prefer if a rebate would be issued to the customers. She then asked the MWSS chief if they have already notified Manila Water of their penalty.

Ty said the MWSS had written to Manila Water last March 8, which is considered as the first day of the 15-day period indicated in the concession agreement.

Sotto then called out Ty for issuing contradicting statements on fines or penalties that would be imposed against Manila Water.

"You're saying na hindi pwede i-penalize di ninyo pwede o-fine eh maliwanag na sinasabi meron," Sotto told the MWSS official.

The MWSS chief regulator reiterated that he failed to articulate himself and stressed that they are now computing the penalty for the east zone concessionaire.

"We are studying it right now. We are actually studying the amount of fine... it's a penalty that will be imposed which can be rebated," Ty said.

For clarity, Sotto asked if MWSS can penalize Manila Water for its violation to provide 24/7 water service to which Ty answered: "Yes."