Water board allowed to rule on rate issues
The National Water Resources Board (NWRB) has the jurisdiction to hear and rule on proposed water rate increases, specifically by private firms like the concessionaires of the Metropolitan Waterworks and Sewerage System (MWSS), the Court of Appeals said. Ruling on a legal question filed by Maynilad Water Services, Inc., the court gave the regulator the go-signal to proceed hearing the complaint filed by several militant groups in 2005 enjoining the then Lopez-led Maynilad Water Services, Inc. from increasing average water tariff to P30.19 per cubic meter. In a three-page resolution penned by Associate Justice Marlene Gonzales-Sison, the special 15th division of the appellate court said: "After a careful review and examination of the arguments advanced in support of said motion [by Maynilad], we found no cogent or compelling reason to favorably act on the same." There is no reason that would warrant a reversal of its May 28, 2007 decision, it said. Acting then on the complaint of Maynilad regarding the power of the NWRB to monitor the rates of private firms, the appellate court said the business assumed a public dimension when it entered into a concession agreement with the government-led MWSS. As a concessionaire, Maynilad serves the "west zone" of Metro Manila and surrounding areas, consisting of Pasay, Caloocan, Las Piñas, Parañaque, Valenzuela, Muntinlupa, Manila except Sta. Ana, some areas of Makati and Quezon City, Malabon and Navotas, as well as Cavite City, Rosario, Imus, Noveleta, Bacoor and Kawit. "It must necessarily submit to the regulation of government authorities, even if in the process it has to surrender its certain business prerogatives," the appellate court has said. The court noted that NWRB wields powers previously held by the Bureau of Rate Regulation and the Public Service Commission, allowing it to monitor and regulate the rates of public utilities. In a separate interview, Government Corporate Counsel and concurrent MWSS-Regulatory Office head Alberto Agra said the case will be brought to the Supreme Court. "This is an issue of [who has] the power to regulate rates. It is our position that MWSS [has this power]," he said. The appellate court decision also dismissed the motion for intervention of the MWSS. "Indeed, MWSS and MWSS-RO could very well have sought reconsideration of the challenged resolution by pointing out and proving that the NWRB has no jurisdiction to hear and decide the complaint filed by the cause-oriented groups and Maynilad customers, but they miserably failed to do so," the appellate court said. — Ira P. Pedrasa, BusinessWorld