Group to water firms: Stop scaring consumers with threat of water rate hike

Statements on the possibility of steep rate hikes may be an overreaction on the part of water concessionaires after the government canceled the extension of their respective deals, a consumer group said on Thursday.

Interviewed on Dobol B sa News TV, Laban Konsyumer Inc. president Vic Dimagiba said Maynilad Water Services Inc. and Manila Water Company Inc. should not scare their customers because of the revoked deals.

“Hindi dapat sila mananakot… I think baka nag-overreaction sila na do-doble daw ang presyo,” Dimagiba said.

“Yung ganyang statement na ica-cancel ang extension, extension lang naman ‘yun e. Pag-uusapan nila doon sa negotiation table nila how many years of extension we need,” he added.

Concerns such as this are part of the negotiation for a possible new contract, Dimagiba said.

The MWSS board has revoked its previous resolution approving the extension of the concession agreements with Manila Water and Maynilad.

The contracts with Maynilad and Manila Water were previously extended to 2037, which is 15 years after their expiration in 2022.

Following the announcement of the extension’s cancellation, the two firms warned that it may result to a 100-percent increase in water rates.

Dimagiba said Manila Water and Maynilad should remain open to negotiations with the government.

“Dapat consistent sila. Nagpakita sila na, sige, nag-comply sa utos ng pangulo, nag-apologize sila. Dapat i-maintain nila yung attitude na open sila na buksan at review-hin ang kanilang kontrata,” Dimagiba said.

With the possible new contracts, Dimagiba said that there should be a public consultation of the details in the agreement for the sake of people’s awareness.

“At this time, ang consumers marunong umintindi ng kanilang binabayarang serbisyo, ay isali sila sa pagbalangkas ng bagong kontrata,” he said.

President Rodrigo Duterte recently objected to a provision in the contracts that would hold the government liable if it interfered in the implementation of water rates.

Also, the state should indemnify the firms for losses.

Under this clause, the Permanent Court of Arbitration in Singapore ordered the Philippine government to pay Maynilad around P3.6 billion, and Manila Water P7.4 billion over the unimplemented rate changes.

The government has indicated that it would not pay the amounts as Duterte found the provision objectionable. The two concessionaires has since said that they would not collect the arbitral award.

Deputy Speaker Surigao del Sur 1st District Representative Prospero Pichay, Jr. said the purpose of Duterte for this action was to have MWSS renegotiate the “onerous” provision in the contracts.

Pichay also hinted a possible decrease in water rates if the renegotiation results in longer years of extension of the firms’ contracts. —Joviland Rita/NB, GMA News