Water rates up by P1.30

MANILA, Philippines - Starting January next year, households in eastern Metro Manila consuming 30 cubic meters of water monthly would be paying an additional P1.30 per day, Ayala-controlled utility firm Manila Water Co. Inc. announced yesterday.

The utility firm distributes water to Manila, Quezon City, Makati, Mandaluyong, San Juan, Marikina, Pasig, Pateros, Taguig and Rizal province. 

In a disclosure to the Philippine Stock Exchange, Manila Water said the bills of households consuming 15 cubic meters of water monthly shall increase by P0.47 per day.

The rate hike affects around 3 million consumers.

Households consuming 10 cubic meters of water or less monthly, around 1.5 million consumers, are exempted from the tax adjustment.

Manila Water said the rate hike represents the second tranche of the approved tax adjustment equivalent to 5.33 percent of the basic charge effective on Dec. 31, 2009 and 0.20 percent change in the consumer price index of the old rate. 

In 2008 the Metropolitan Waterworks Sewerage System (MWSS) and Manila Water agreed on a rate adjustment to be implemented on a staggered basis over a five-year period, or from 2008 to 2012.

The rate rebasing was to be implemented in 2009 but because of the ongoing credit crisis, the government ordered that tariff mitigation measured be adopted. As a result, no adjustments in the base tariff were implemented in 2009.

MWSS approved a 15-year extension of the concession agreement with Manila Water, from 2022 to 2037.

As a result of the renewal, the average base tariff will increase by P1.16 per cubic meter.