The Metropolitan Waterworks and Sewerage System (MWSS) has approved the rate increases of its two water concessionaires to take effect next year.
MWSS Regulatory Office chief Patrick Lester Ty announced the adjustments ranging from P6.41 to P7.87 per cubic meter starting January 2024 because of inflation and the spending program of the west zone franchisee Maynilad Water Services Inc. and east zone franchisee Manila Water Co. Inc.
“We did the tariff adjustments in tranches to ensure that the public will be protected and it will not be too burdensome to do it all in one go, (and) to ensure that Manila Water and Maynilad will be doing their capital expenditure rollout projects and ahead of schedule actually, hopefully,” Ty said.
“Part of the reason is we need to prepare for the El Niño (episode) that will be happening in 2024… and we have started preparing for that, and we have directed Manila Water and Maynilad to ensure that there will be no water crisis and to mitigate all the effects of El Niño next year,” he added.
Under the second tranche of the rate rebasing, Maynilad and Manila Water will raise their rates for as long as they could meet MWSS’ criteria, such as spending for programs to ensure water security.
Manila Water has been given the green light to increase the average basis charge by P6.41/cu.m. to P42.26/cu.m. in 2024 from P35.85/cu.m. this year.
The adjustment included P1.27/cu.m. for inflation, and P5.14/cu.m. for its spending program or translated to an estimated upward adjustment of P2.96 per month for low-income lifeline customers, P34.12 for those consuming 10 cu.m. per month, P76.68 for those consuming 20 cu.m. per month, and P154.55 for those consuming 30 cu.m. per month.
Maynilad is allowed to raise its rates by P7.87/cu.m. to P47.57/cu.m. in 2024 from P39.70/cu.m. in 2023.
The adjustments would translate into an additional P4.74 per month for low-income lifeline customers, P26.61 for regular lifeline customers, P100.67 for those consuming 20 cu.m. per month, and P205.87 for those consuming 30 cu.m. per month.
Ty said the adjustments are “affordable” and “necessary” to ensure that services would continue to be available amid El Niño.
“We feel that (for) the public, of course, it’s still an added burden, but we feel that this is a necessary burden because what is more important is to ensure that the proper service is given to the consumers, and there will be water on tap, especially with the looming El Niño,” he said.
“I’m asking the public for understanding. What is more important is, they are giving our customers the right services,” he added.