MWSS eyes improvement to Maynilad’s services in 2023 with approved rate hike

The Metropolitan Waterworks and Sewerage System (MWSS) said Tuesday it is expecting west-zone concessionaire Maynilad Water Services Inc. to significantly improve its services by next year, following the approval of its water rate hike request.

MWSS chief regulator Patrick Lester Ty said their regulatory office put in place a “no tariff adjustment except inflation” condition into Maynilad’s rate rebasing adjustment until it enhances its water services for its customers.

“Sa Maynilad, maraming areas sa south ang may problema kaya ginawa natin na conditional ang kanilang tariff adjustment. Kaya kung na-notice niyo, mas mababa talaga significantly ang adjustment for Maynilad,” he said in GMA News’ Unang Balita interview.

(Many areas in the south have problems with Maynilad so we made their tariff adjustment conditional. If you noticed, the adjustment for Maynilad is significantly lower.)

Maynilad 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.

Ty said that Maynilad would not be able to get its tariff adjustments in the succeeding tranches if its services would not improve by the end of 2023.

“‘Pag hindi nila maayos, ito ‘yung sinabi natin earlier na tranches ang ginawa natin na adjustment. Hindi nila makukuha ang subsequent o susunod na tariff adjustment or second tranche, or even the third, fourth, and fifth tranche, kapag hindi maayos ng Maynilad ang kanilang serbisyo,” he said.

(If they don't fix their services, Maynilad won't get the subsequent or next tariff adjustment or second tranche, or even the third, fourth, and fifth tranche.)

“‘Yan ang usapan namin para mabigyan natin sila ng opportunity at ng resources capability para maayos nila ang kanilang serbisyo,” he added.

(That was our agreement to give them the opportunity and the resources capability so that they can improve their service.)

Aside from Maynilad, MWSS also granted the rate hike request of Manila Water Company Inc., set to be implemented from 2023 to 2027. —KG, GMA Integrated News