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ABUSE OF DOMINANT POSITION

Laban Konsyumer: Manila Water’s 780% rate hike warning is a ‘form of bullying’


Consumer advocacy group Laban Konsyumer Inc. on Friday slammed Manila Water Co. Inc. for releasing a statement that water rates would “exponentially” increase if a Supreme Court decision imposing fines against water concessionaires would not be reversed.

The Ayala-led concessionaire has warned that water rates could increase by as much as P26.70 per cubic meter or 780% “if the SC decision issued last August is not reversed.”

Manila Water’s statement “is a form of bullying,” Laban Konsyumer president Vic Dimagiba told GMA News Online. “It is a form of ‘bullying’ or, in other words, an ‘abuse of dominant position’.”

The Metropolitan Waterworks and Sewerage System (MWSS) earlier pointed out that financial penalties slapped against water concessionaires cannot he passed on to consumers.

In August, Manila Water and Maynilad as well as the MWSS were slapped by the SC with fines amounting to P921,464,184 million for not complying with the Clean Water Act.

The parties were also fined P322,102.00 per day from the day they received a copy of the decision until they have fully settled the fine.

In its motion for reconsideration filed last week, the water concessionaire said the various fines imposed by the SC “have no basis.” —VDS, GMA News