Water rate hike for Manila Water, Maynilad approved by MWSS-RO

The Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO) has approved the increase in water service rates for its concessionaires, Manila Water Company Inc. and Maynilad Water Services Inc.

At a press conference in Quezon City on Thursday, MWSS-RO Chief Regulator Patrick Ty announced that the regulatory body took into consideration the actual capital spent by the water concessionaires for the period 2023 to 2024 in approving the water rate hikes, which would take effect in January 2025.

In particular, Ty said Manila Water spent cumulative P32.668 billion for its water and wastewater projects for the period, accounting for 81% of its capital expenditure target.

Meanwhile, Maynilad spent 83% of its capex target for 2023-2024 amounting to P47.591 billion.

“As long as they spend a reasonable [percentage] of their capex… we will allow them to raise tariffs,” Ty said.

The MWSS-RO chief said that Manila Water and Maynilad need to pour in billions to invest in their project for the concessionaires to “be able to maintain and improve their service.”

For residential customers of Manila Water, the approved tariff, effective January next year, would be P61.04 per cubic meter, an increase of P5.95 from the rate of P55.08 per cubic meter as of the fourth quarter of 2024.

With the upcoming rate hike, low-income or lifeline customers consuming less than 10 cubic meters a month should expect an increase of P2.87 in their monthly bills.

Regular residential customers of Manila Water consuming up to 10 cubic meters, 20 cubic meters, and 30 cubic meters in a month would expect an increment of P24.68, P54.79, and P111.83 in their monthly bills, respectively.

For Maynilad, the MWSS-RO thumbed up an adjustment of P7.32 per cubic meter in the tariff rate of their residential customers starting January 2025, bringing its all-in average water rate to P65.62 per cubic meter from P58.30 per cubic meter as of the last quarter of 2024.

The adjustment would mean an increase of P10.56 in the monthly bill of a low-income lifeline consumer.

For residential customers of Maynilad consuming up to 10 cubic meters, 20 cubic meters, and 30 cubic meters per month; the rate adjustment would translate to an increase of P20.08, P75.89, and P155.32 in their monthly bills, respectively.

The approved tariff rates were higher than those indicated under the scheduled rates during the 5th rate rebasing period for water distribution utilities done in 2022.

The rate for Manila Water is scheduled to increase by P3.25 per cubic meter in 2025, while for Maynilad the hike would be P2.12 per cubic meter.

Ty explained that the increases under the 5th rate rebasing are “not automatic” and would depend on the capital spent and performance of the water distributors, thus the higher tariff rates approved by the regulatory body for next year.

The MWSS-RO chief said that both Manila Water and Maynilad spent “massively” for their projects, warranting the need to adjust their rates for them to continuously improve their services in their respective franchise areas.

To ease the burden on low-income consumers, the MWSS-RO has expanded the lifeline program to cover those who consume above the minimum 10 cubic meters per month threshold provided that water customers, who are under the 4Ps, register with their respective water service providers.

The discounted water rates for Manila Water and Maynilad’s “enhanced” lifeline program are as follows: