Calapan water provider says rate hike only temporary

MANILA, Philippines - The water service provider of Calapan City in Oriental Mindoro said the rate increase in its concession area contested by the city government is only temporary and would ease in the coming months.

Calapan City Mayor Arnan Pangilinan recently asked Calapan Waterworks Corp. (CWWC) to stop the implementation of the water rate increase which he described as “unreasonable, punitive and burdensone” to consumers.

In a letter to CWWC chairman Jolly Ting, Pangilinan said consumers who used to pay P900 per month now pay P2,000.

In his reply, Ting said the higher water bill in their concession area is the combined result of the second phase of the government-approved rate hike and the migration to a new billing system.

CWWC maintained that the second phase of the rate increase contested by the local government unit is “not unreasonable.”

Ting said the National Water Resources Board (NWRB) approved the company’s petition for a staggered rate increase on May 26, 2010 to improve the water supply in its concession area.

The company sought a rate hike of around 80 percent in 2009,  which would be staggered in two phases over five years.

The second phase of the rate hike was implemented starting September 2013.

Ting said the higher rate in the January 2014 billing period was “overstated” because of the greater number of calendar days covered by the billing period compared to the December billing period.

He explained that the December 2013 billing period covered only 25 calendar days while there were 42 to 52 calendar days covered by the January billing period.

Ting said the implementation of the company’s new Rover billing system resulted in a change in cut-off dates and, consequently, a delay in payments.

He said the company will make the necessary adjustments on the next billing period  and would be waiving the penalties for late payments for the February 2014 billing period. The company will also launch an information drive on the rate increase.

“CWWC understands that due to its efforts to provide better service, it has caused an inconvenience to the subscribers, with the burden of paying less than their average bill last December and then more in January. Rest assured that the February billings will be adjusted accordingly,” he said.

Ting said that with the implementation of the Rover billing system, meters can be read and bills sent to customers on the same day.

He said the company also sought the water rate hike to improve its facilities and expand water service coverage in the city.

“CWWC has increased its rates so it could expand it facilities and keep up with increasing water demand due to population growth and increased commercialization in the city,” he said.

Ting said the NWRB had called for a hearing on the petition on Aug. 14, 2013, before the implementation of the second phase of the rate hike.

He said notices of the meeting were sent via registered mail to stakeholders, including barangay officials in the service area, the city council, and the mayor “but none of them showed up.”

Panaligan, however, stressed that CWWC should hold off the implementation of the second phase of the increase considering the financial hardship of his constituents.

He also said despite the rate increase, some areas in the concession zone still have low water pressure and have no round-the-clock water supply.

“CWWC also needs to balance the interests among its various stakeholders,” said Ting. “ CWWC understands that high water pressure and 24-hour water supply may not be enjoyed  in certain areas. CWWC is aware of this and is in the process of improving its services in these areas.”

Ting said since taking over the concession area, the company has provided high-quality water to its customers and significantly increased coverage.

He noted that the company was able to increase water service connection by 54 percent from 6, 526 connections in 26 barangays to 10, 042 connections in 32 arangays in 2013.

CWWC is a unit of listed Calapan Ventures Inc. which has two other water service subsidiaries: Tabuk Water Corp. and Metro Agoo Waterworks Inc.