Water companies passed on additional charges to consumers – report

Apart from their corporate income tax, the two water concessionaires primarily operating in Metro Manila may have passed other charges to consumers, an official of the Metropolitan Waterworks and Sewerage System (MWSS) revealed on Tuesday.   Manila Water Company Inc.’s and Maynilad Water Services Inc.’s travel expenses, advertisements, donations, training expenses and office equipment were allegedly passed on to consumers as part of the “basic charge,” Maki Pulido reported during GMA’s nightly newscast “24 Oras.”   “Ang donation is a gratuity that is given from the heart ‘yan. Ang mahirap sa framework natin kung donation ‘yan, dapat buong pusong binibigay ‘yan sa kumpanya na hindi niya ipapasa sa consumer. Ang nangyayari po kasi dito… ang pera na ginamit para doon, ipapasa rin para sa consumer ‘yun. So, ang consumer bale ang nagbabayad ng donation na ‘yun,” explained Atty. Emmanuel Caparas, acting chief regulator at MWSS Regulatory Office, in the television report.   Earlier, a consumer group claimed that the water concessionaires, with the MWSS’ approval, passed on P15 billion in corporate taxes to consumers between 2008 and 2012.   If the government is able to prove that the water concessionaires passed the additional charges on to consumers, the water utility companies will not be able to impose a water rate hike.   “All of the amounts that we disallow will have an impact already on the final rate that we determine. So, ibig sabihin, nakakabawas po siya doon sa tariff. So kung ngayon, ang hinihingi ng konsesyonaryo adjustment paakyat, nakakahinto po ‘yan para hindi aakyat ‘yan kasi ibabawas mo ‘yan,” said Caparas   However, the regulatory body has yet to determine the rebate amount consumers are due as their audit report on the two water concessionaires was still ongoing. “Well, marami pang items po iyan at malaking halaga rin po pag sinuma total mo po lahat ‘yan. Malaki rin po ang halaga noon. So, hihimayin pa namin yan,” Caparas said.   Manila Water Company and Maynilad have yet to issue a statement regarding the issue. — Rouchelle R. Dinglasan/DVM, GMA News