MWSS toughens stand against water rate hike

The water rate increase sought by utilities in Metro Manila can not be imposed while their appeal before the International Chamber of Commerce remains unresolved, regulator Metropolitan Waterworks and Sewerage System (MWSS) said Thursday.

 

The MWSS board of trustees maintained in separate resolutions the status quo concerning the standard rates of Manila Water Co. Inc. and Maynilad Water Services Inc. "until such time that the Appeals Panel has issued the final award for the 2013 rate rebasing determination." 

 

In September, the MWSS approved a 29.47 percent downward adjustment on Manila Water’s 2012 average basic water charge of P24.57 per cubic meter, which will be implemented in five equal tranches of -5.894 percent per year. Manila Water proposed a basic rate increase of P5.83 per cubic meter.

 

The regulator also approved a negative adjustment of 4.82 percent on Maynilad’s 2012 average basic water charge of P30.28 per cubic meter, which will be implemented in five equal tranches of -0.964 per year. The utility was asking for an P8.58 per cubic meter rate hike in the five years to 2018.

 

The adjustments the MWSS imposed would be implemented starting next year.

 

The board approved the downward adjustments in water rates as as the utilities were unable to justify the need for higher rates based on their business and investment plans for the next five years, MWSS acting chief regulator Emmanuel Caparas earlier said. 

 

In turn, the water concessionaires contested the MWSS before the Paris-based International Chamber of Commerce. 

 

The concession agreement between MWSS and Manila Water provides for arbitration in disputes that are unresolved through consultation or negotiation before an arbitration panel in which Manila Water and MWSS are represented while the International Chamber of Commerce serves as the appeals chair. – VS/KBK, GMA News