MWSS approves water rate hikes for Manila Water, Maynilad

Customers of Manila Water Company Inc. and Maynilad Water Services Inc. should brace for higher water bills next year after the Metropolitan Waterworks and Sewerage System (MWSS) approved the rate hike requests of the water concessionaires.

The Metropolitan Waterworks and Sewerage System has approved the proposed water service rate increases of Manila Water and Maynilad, which will take effect in January 2023. pic.twitter.com/ow7ijiLcWk

— Ted Cordero (@Ted_Cordero) November 17, 2022

In a statement on Thursday, MWSS-Regulatory Office chief regulator Patrick Ty said the agency approved the rate rebasing adjustments for both concessionaires which will be implemented from 2023 to 2027.

The rate rebasing is a process, done every five years, that determines the level of rates for water and sewerage services that permits the water concessionaires to recover, over the life of the concession, its operating, capital maintenance and investment expenditures.

To recall, Manila Water sought for a per cubic meter water rate increase of P8.04 starting 2023, P5 per cubic meter in 2024, P3.25 per cubic meter in 2025, P1.91 up to P3.00 per cubic meter in 2026, and between P1.05 and P1.08 per cubic meter come 2027. 

The upward rate adjustment was intended to fund Manila Water’s P180-billion operational requirements in the next five years.

Starting January, Manila Water consumer-households consuming 10 cubic meters of water a month should expect their water bills to increase to P192.42 from the current P151.23, while those consuming 20 cubic meters and 30 cubic meters should see their monthly water bills increasing to P425 and P866.03, respectively, from P333.47 and P679.02.

Maynilad, on the other hand, sought a P3.29 per cubic meter water rate adjustment beginning January next year. 

For the succeeding years, Maynilad proposed a P6.26 increase in 2024, P2.12 hike in 2025, and P0.84 up to over P1 increment from 2026 to 2027.

The rate adjustment was intended to fund Maynilad’s P150-billion expansion plan which will be implemented in five years.

Beginning next year, households who consume 10 cubic meters in a month should see their monthly bills increase to P135.70 from P130.42, while those who consume 20 cubic meters and 30 cubic meters should expect their bills to rise to P509.11 and P1,39.64, respectively, from P488.82 and P997.93.

MWSS-RO’s Ty said the approval of the rate rebasing adjustment for the 2023 to 2027 period was done following a series of public consultation drives conducted in July and October this year.

“These rate adjustments will enable Manila Water and Maynilad to provide the highest quality of water, sanitation, and sewerage services that their customers deserve. 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,” he said.

“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,” he added. —LBG, GMA Integrated News