MWSS warned vs rate increase

Malacañang warned the Metropolitan Waterworks and Sewerage System against implementing the rate increase of the two concessionaires of Metro Manila which it approved without notifying the Palace.

Press Secretary Cerge Remonde said yesterday that the statements made by MWSS administrator Diosdado Allado about the need to raise the rates of Manila Water Co. Inc. and Maynilad Water Services Inc., in spite of the order of Malacañang for an explanation first, would have its consequences.

“If it’s true that the MWSS said that, that would be tantamount to defying the Palace order enunciated by both the spokesman of the President and the Executive Secretary himself,” Remonde said.

On Wednesday, Ermita ordered the MWSS to explain the reasons behind its recent approval of the rate increases of the two concessionaires even when there was a specific instruction for them to consult the Palace on these decisions. Ermita pointed out that the regulatory body cannot make these decisions unilaterally as ordered by the President. He argued that the price of water, being a basic service, should not become a burden to the Filipino people at this time when the economy is faced with tough challenges.

At the start of the year, Allado announced the decision of the MWSS board to defer any increase in water rates in Metro Manila and the other areas under its jurisdiction because of the global financial crisis.

However, the MWSS recently approved a P2.27 per cubic meter increase in the rate of the Ayala-owned Manila Water and an average of P2.81 per cubic meter for the Lopez-owned Maynilad.

“Therefore that should be another matter that he (Allado) should explain to Executive Secretary Ermita,” Remonde said.