[ Manila Bulletin Online ] January 16, 2009
By DAVID CAGAHASTIAN
The Metropolitan Waterworks and Sewerage Systems (MWSS) announced yesterday the postponement of the proposed rate increases of its concessionaires, Maynilad Water Services Inc. and the Manila Water Co.
MWSS Administrator Diosdado Allado said the MWSS board decided to postpone the proposed rate increases of both its concessionaires to give relief to the people amid the global financial crisis.
"It was the common sentiment of the board as a collegial body that in light of the global financial crisis, it would be socially irresponsible and insensitive for us to implement or effect a further increase in water rates which is a very basic commodity that all of us are using," Allado said.
Allado said Maynilad, which manages water services for the western zone of Metro Manila, asked for an increase of R10.20 per cubic meter. Manila Water, which services the eastern zone of Metro Manila, had asked for a R6.90 rate increase per cubic meter.
Allado said both proposals to increase the rates for water services in Metro Manila were "frozen."
"On Manila Water, the R6.90 increase that they are asking, even that has been frozen. And the action of the board has also been to not implement the increase of Manila Water so the entire service are of MWSS," Allado said.
Allado debunked the claim of Manila Water that the postponement of the increase would only be superficial because the postponed increase would only be added to the next round of water rate increases.
"It is not only that the increases are being postponed, because we still have to assess whether the programs they promised for the development of our water system have already been fulfilled to justify the increases they are asking. If we find that the programs have not been fulfilled, we might even look into asking them for a rollback or a redirection of the programs," Allado said.
Meanwhile, Maynilad said the move of the MWSS to defer its petition for a water rate hike is a violation of the concession agreement.
MWSS has denied the petition of west zone concessionaire Maynilad to increase its rates by R10.20 starting on Feb. 1, saying the step is "untimely."
Maynilad president Rogelio Singson said the MWSS decision is surprising. "We were caught by surprise by the recent decision of MWSS to defer tariff rate adjustment since we have indications of tariff adjustments. We already agreed to increase rates by Feb. 1. We also agreed to a staggering scheme for our consumers," Singson said. (With Ellalyn B. de Vera)
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