The government has approved higher water rates for customers of Manila Water Co. Inc. and Maynilad Water Services Inc.—up by at least five pesos for every 10 cubic meters consumed—effective January 2023.
“These rate adjustments will enable Manila Water and Maynilad to provide the highest quality of water, sanitation, and sewerage services that their customers deserve,” the Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS RO) said Thursday in a statement.
“These include the development of additional water sources that will ensure continuous improvements in the supply of safe drinking water as well as the expansion of environmentally safe wastewater services within the Concession Areas,” it said.
Under the approved matrix, Manila Water consumers consuming 10 cubic meters per month will see an increase in their water bills to P192.42 starting January 2023 from P151.23.
Those consuming 20 cubic meters per month will see their rates increase to P425 from P333.47, and those consuming 30 cubic meters will see a rise to P866.3 from P679.02.
The subsidized rate for lifeline consumers will ease slightly to P85.59 from P86.57.
For Maynilad consumers using up to ten cubic meters, their rates will rise to P135.70 from P130.42.
The rate for those consuming 20 cubic meters will go up to P509.11 from P488.82, while the rate for those using 30 cubic meters will increase to P1,039.64 from P997.93.
The MWSS-RO said this was done after a thorough and independent review and evaluation of the concessionaires’ proposals, considering the inputs gathered from concerned stakeholders as well as the provision of the Revised Concession Agreement (RCA) that there shall be no tariff adjustments until December 31, 2022.
“The MWSS Board of Trustees approved on November 10, 2022, the MWSS RO’s recommendation for the Concessionaires to implement the following Rebasing Convergence Adjustments from 2023 to 2027,” the agency said.
The MWSS RO conducts a rate rebasing exercise every five years under the concession agreement entered into by the MWSS and the two companies.
“The Office assures the public that it remains relentless in protecting their interest and welfare and that it is committed to upholding transparency, accountability, and citizen participation in governance,” the agency said.
Rate rebasing is a periodic performance review and general tariff adjustment, which sets the maximum rates that the concessionaires may charge for their services at a level that will allow them to recover over the life of the concession their investment, capital, operating, and maintenance expenditures prudently and efficiently incurred and to earn a rate of return on these expenditures.
The MWSS RO held consultations from November to December 2021 to inform partner local government units on the completed and ongoing projects, programs, and plans of the concessionaires; solicit valuable inputs from LGUs that may be incorporated into the concessionaires’ business plans; provide a venue for discussing and addressing prevailing issues and concerns of stakeholders on water, sewerage, and sanitation services; and exploring good practices in providing these services.
The regulatory office engaged independent consultant experts in January to handle the economic, financial, accounting, legal, and technical aspects of the 5th Rate Rebasing Exercise and to ensure that it is methodical, fair, and equitable to both the customers and the concessionaires.
Manila Water and Maynilad submitted to the MWSS RO their business plans for 2023 to 2027 in March to ensure water security, environmental sustainability, and service continuity and accessibility for the customers within the East and West concession areas.
In July, the MWSS RO conducted the first phase of its 5th Rate Rebasing to present the concessionaires’ proposed business plans to concerned local governments, customers, and other stakeholders.
The second phase of the consultations was held in October to discuss and solicit feedback on the reasonableness of the concessionaires’ proposed business plans and tariff adjustments for the next five years.