Maynilad to discuss water tariff adjustments with MWSS

West zone concessionaire Maynilad Water Services Inc. intends to discuss possible tariff adjustments with industry regulators in light of a recent Supreme Court decision, given the higher spending required to fast track its sewerage projects.

“... Maynilad will have to engage with its Regulators on the tariff adjustment to be implemented as a result of the accelerated capital expenditures that will arise from the accelerated implementation of sewerage projects,” it said in a regulatory filing.

“It is difficult to project at this time the overall impact of the decision on Maynilad’s financial position,” the company also said in the filing submitted by Melody del Rosario, vice president of Metro Pacific Investments Corp.—Maynilad’s parent company.

Maynilad said in May that plans were afoot to nearly double the spending program to P16.8 billion this year from the P9 billion in 2018, mainly to enhance and expand water and wastewater services.

The concessionaire said it also intends to appeal the Supreme Court decision.

“For violating Section 8 of the Clean Water Act, the Supreme Court held each of the concessionaires jointly and severally liable with the MWSS for P921,464,184.00 for the period 7 May 2009 (the day following the lapse of the five-year period provided in Sec. 8) to 6 August 2019, the date of the decision’s promulgation,” according to Metro Pacific’s disclosure.

“Maynilad shall file a motion for reconsideration of the decision with the Supreme Court on or before 2 October 2019.”

Apart from Maynilad, the SC decision also covers Manila Water and the Metropolitan Waterworks and Sewerage System (MWSS).

Section 8 requires the connection of existing sewage lines in all subdivisions, condominiums, commercial centers and other establishments including households, to an available sewerage system.

Maynilad said it received a copy of the SC decision on Tuesday, September 17, 2019.

Aside from the SC fines, the MWSS in June imposed financial penalties against Maynilad for failing to provide 24/7 uninterrupted water services to its customers.

The regulator ordered Maynilad to give each severely affected customer in Las Piñas a P2,500 rebate, which the concessionaire accepted in July.  —Jon Viktor Cabuenas/VDS, GMA News