MCWD discount 'not anti-poor'

CEBU, Philippines - An official of the Metropolitan Cebu Water District (MCWD) insisted that the new tiered discount scheme that took effect in this month's bill is not anti-poor.

"Some sector viewed this as anti-poor, but actually this is protecting the poor," said Ernesto Delco, MCWD assistant manager for operations.

Delco said that those consuming below 30 cubic meters a month were paying P15 per cubic meter while those consuming above 30 cubic meters a month were paying P48 per cubic meter.

He explained that the cost of producing and distributing water per cubic meter is P21.30, which means, the poor or those who consumed 30 cubic meter below are being subsidized by at least P6 per cubic meter by their large or commercial customers.

"The reason why we no longer gave a discount for those consuming below 50 cubic meters is to attract more large customers, so that it will continue to subsidize the poor. We do not want to increase our water rates yet," Delco said.

The new tiered discount scheme would also mean more water connections among larger consumers.

"If we will be losing our large customers to our competitors, who are private entities and selling their water at a lower price than ours, then chances are, our cross-subsidizers will lessen and this will result to an increase of our rates among our household customers and the poor," Delco added.

He lamented that private water companies are selling their water between P35 to P40 per cubic meter.

"We need to attract large customers to maintain cheap or subsidized pricing sa mga customers nga low ang ilang water consumption," he reiterated.

MCWD consumers consuming less than 50 cubic meters will no longer enjoy a five percent discount starting this month.

In their advisory, the new tiered discount scheme will take effect this month.

MCWD earlier announced that effective January 1, 2014, the new discount scheme is implemented in lieu of the existing five percent discount for on-time payment.

Previously, MCWD gave a five percent discount regardless of the consumer's monthly water consumption, as well as a discount for those who pay on or before the due date.

MCWD have been giving this five percent discount since 2006.

"Not all customers were paying on time, so not everybody availed of the discount. Besides, the discount given is not a right, it is a privilege," Delco emphasized.

The advisory added that the discount will also apply only to the consumer's water fee and will exclude the Power Cost Adjustment, Purchased Water Adjustment and franchise tax.

MCWD added that for bulk-metered subdivision service connections, the discount rate will not be based on the total consumption but on the average consumption per occupied unit for the billing period.

MCWD has 160,000 service connections within its franchise area with a total average daily consumption of 180,000 cubic meters.  (FREEMAN)