MWSS Board OKs Higher Water Rates

Customers of Manila Water Co. Inc. and Maynilad Water Services Inc. should brace for an increase in water rates starting next year after the Metropolitan Waterworks and Sewerage System (MWSS) approved the upward adjustment for their mandatory rate rebasing.

The MWSS Board of Trustees (BOT) approved on Nov. 10 the recommendations of the MWSS-Regulatory Office on the rate increases from 2023 to 2027 of the two water concessionaires.

Manila Water will have a total increase of P19.25 to P20.37 per cubic meter (cu. m.) to be staggered in five years as part of the mandatory rate rebasing for the concessionaires.

With the board approval, east zone customers will see their rates rise by P8.04 per cu. m. starting next year, P5 by 2024, P3.25 by 2025, P1.91 to P3 by 2026, and P1.05 to P1.08 per cu. m. by 2027.

The 2023 rate increase translates to P0.98 per month for the lifeline customers and P41.19 per month for those consuming below 10 cu.m.; P91.53 for 10 to 20 cu.m., and up to P187.01 for 20 cu.m. and above.

Manila Water’s increase in environmental charges from 20 percent to 25 percent will also start next year, and further increase to 30 percent starting 2026.

The sewer charge will also increase from 30 percent to 32.85 percent starting next year, subject to Manila Water’s attainment of sewer coverage of 30 percent by end-2025.

On the other hand, Maynilad’s total increase for the five-year period is P13.31 to P13.69 per cu. m.

West zone customers will see a rate increase of P3.29 per cu. m. starting next year, P6.26 per by 2024, P6.26 by 2025, P0.84 to P1.01 by 2026, and P0.80 to P1.01 per cu. m. by 2027.

By January, the 2023 rate hike will translate to an increase of 5.28 per month for those consuming below 10 cu.m.; P20.29 for 10 to 20, and up to P41.71 for 20 cu.m. and above.

Beginning 2024, the implementation of the staggered rate will depend on Maynilad’s ability to attain its targets for water supply, continuity and coverage provided in its 2022 Approved Business Plan.

For 2026 and 2027, Maynilad’s rate increase will vary depending on whether the new water source — the Kaliwa Dam — is completed on or before 2028.

Meanwhile, the increase in the environmental charges from 20 percent to 25 percent of the basic water charge by January 2025 is subject to Maynilad’s attainment of sewer coverage of 25 percent by the end of 2024.

“These rate adjustments will enable Manila Water and Maynilad to provide the highest quality of water, sanitation, and sewerage services that their customers deserve,” the MWSS-RO said.

These services include the development of additional water sources that will ensure continuous improvements in the supply of safe drinking water as well as the expansion of environ-mentally safe wastewater services within the concession areas.

“The MWSS-RO is grateful for the support and active participation of all stakeholders in its 5th Rate Rebasing Exercise, especially the water consumers within the Concession Areas. The Office assures the public that it remains relentless in protecting their interest and welfare, and that it is committed to upholding transparency, accountability, and citizen participation in governance,” it said.

The MWSS-RO conducts a rate rebasing exercise every five years pursuant to the concession agreement entered into by the MWSS with Manila Water and Maynilad.

Rate rebasing is a periodic performance review and general tariff adjustment, which sets the maximum rates that the concessionaires may charge for their services at a level that will allow the concessionaires to recover over the life of the concession their investment, capital, operating and maintenance expenditures prudently and efficiently incurred and to earn a rate of return on these expenditures.

Prior to the 5th rate rebasing exercise, the MWSS- RO held a pre-rate rebasing public consultation drive from November to December 2021 to inform local government units on the completed and ongoing projects, programs and plans of the two concessionaires.

In January, the MWSS-RO engaged independent consultant experts to handle the economic, financial, accounting, legal and technical aspects of the 5th rate rebasing exercise, and to ensure that the exercise is methodical, fair and equitable to both the customers and the concessionaires.