Manila Water, one of two private concessionaires serving Metro Manila, this week served up a doomsday scenario of dramatically higher water rates if the Supreme Court insists on imposing a P921 million fine for failing to comply with the Clean Water Act.
The statement, contained in the company's motion for reconsideration, had a ring of blackmail to it—a fact that was not lost on lawmakers who were quick to criticize Manila Water for its insensitivity at best and arrogance at worst.
Faced with scathing criticism, the Ayala-owned company sought to perform some damage control by saying they “never stated that it will be an impending increase” nor that they would pass the costs on to consumers.
“In light of the recent reports on the increase in water rates by 780 percent, we would like to clarify that the 780 percent increase included in the pleading in our motion for reconsideration to the Supreme Court is what it would have cost to build wastewater facilities to comply with the Supreme Court decision…,” it said.
But all this sounded like splitting hairs—and it was clear the company's lawyers had shot themselves in the foot with this passage from their motion for reconsideration: "On the assumption that costs related to the full implementation of the sewerage network are to be recovered by the concessionaires, including petitioner Manila Water, by the end of the concession agreement, the fees that ought to be collected from the end consumers (on top of their water consumption) would amount to PHP26.70 per cubic meter—or a 780.18-percent increase in water rates.”
How, after all, do the concessionaires expect to recover their costs related to the full implementation of the sewerage network, if not from their customers? The company says so itself in the next sentence, when it says “the fees that ought to be collected from the end consumers (on top of their water consumption) would amount to P26.70 per cubic meter—or a 780.18 percent increase in water rates.”
The company may quibble about the word “impending” but the intent seems apparent.
Buhay party-list Rep. Lito Atienza, who used to be Environment secretary, neither quibbled or minced words, calling Manila Water's statement “the height of arrogance.”
“Instead of complying with the Supreme Court order, they are now threatening consumers with an oppressive hike in water rates unless the high tribunal reverses its ruling. This is tantamount to blackmail,” Atienza said.
“For the past 22 years, they have been charging consumers a so-called environmental fee purportedly to put up sewer lines connecting all households to the waste-water treatment facilities. Instead of flowing directly into water bodies such as the Laguna de Bay and Manila Bay, water from households and commercial establishments should be directed to these treatment facilities, converting it to a level that can even be of drinking quality. But until now they have not rendered this service as stipulated in their concession agreement with the government,” Atienza said.
Meanwhile, the utility's regulator, the Metropolitan Waterworks and Sewerage System made it clear that the concessionaires may not pass on these costs to consumers.
Manila Water's threat, intended or not, just doesn't hold water.