Manila Water seeks rate hike starting 2023

Concessionaire Manila Water Company Inc. is seeking a rate increase starting January 2023 for the next six years, according to Dano Tingcungco’s “24 Oras” report on Tuesday.

The water firm said the hike is needed to augment its needed P180 billion for operations in the coming years.

The Metropolitan Waterworks and Sewerage System (MWSS) has began conducting public consultations as part of the process when any concessionaire is seeking a rate increase.

Based on the proposal of the Manila Water, the rate of per cubic meter of water will increase by P8.04 per cubic meter (m3).

If approved, the water rate will increase from P26.81/m3 to P35.86/m3 starting  January 2023.

For households who consume 30m3 of water a month, their water bill will increase to P866.12 from the current P679.02. At least P190 will be added due to the proposed increase.

Manila Water also proposed to increase rate in the following years: P5/m3 in 2024;  P3.25/m3 in 2025; P1.91/m3 in 2026; P1.05m/3 in 2027; and P0.97/m3 in 2028.

Based on the presentation of concessionaire, in the span of six years the water rate will increase from the current P26.81/m3 to P53.46/m3 in 2028.

Manila Water said there is no rate adjustment in 2020 until 2022 despite the approval of the MWSS.

“We are spending the staggered amount to build alternative water sources. A lot of our infrastructures especially yung malalaking transmission lines natin about 50 to 60 years old. Isang matinding [magnitude] 7 the big one earthquake papaano na po tayo,” Manila Water president Jose Victor Emmanuel De Dios said.

According to the MWSS, all the inputs in the public consultations will be part of its study if it gives a go signal to the proposed rate hike.

“All these rates that are being presented now to the public are still subject for approval. These are not yet approved and these are still subject for public consultation so that is why we are here. We want to listen to the sentiments of the public if may comments ba ang publiko, may mga suggestions sila, violent reactions,” Patrick Ty, MWSS Regulatory Office deputy administrator, said.

“We are conducting these two-day event for public consultation and the public are also allowed to submit their comments and suggestions via social media. All of their sentiments, all of their comments will be reviewed and studied. And these will be part of our study on what we will recommend on the approval on the board of trustees,” he added.

Meanwhile, De Dios said they are just following the minimum service obligations of the regulator.

“As much as I want to, it’s really not within my power because at the end of the day, we're gonna spend P181 billion in the next five years. Hindi po yan pinupulot sa tabi tabi. The only way we can think about it and in fact, there is a thought process we defer some projects. You don’t want to do that. Kami po sumusunod kami sa minimum service obligations ng regulator. Sinabi nila yung pressure kailangan ganito, dapat ganito. We get penalized for that in our franchise,” De Dios said.

The MWSS will conduct public consultations next week for the proposed rate hike of Maynilad Water Services, which services the west concessionaire zone.—Richa Noreiga/LDF, GMA News