Lawmaker questions water rate increase

MANILA, Philippines - A lawmaker questioned yesterday the proposed water rate hike of the two water distributors in Metro Manila.

Bayan Muna Rep. Teddy Casiño said the public should not shoulder the alleged foreign exchange (forex) losses adjustment being sought by Manila Water Corp. and Maynilad Water Services Inc.

“This new round of adjustment is both unjustified and unconscionable,” he said. “It is outrageous for consumers to be made to pay for the risks and wrong business decisions of the water concessionaires with regard to the loans they obtained.” 

Casiño said losses due to changes in forex rates are business costs that companies in other businesses absorbed, not passed on to customers.

Companies stand to gain if forex rates improve as what is now happening to the peso when ranged against the dollar, he added.

Government regulators must reconsider their decision allowing Manila Water to increase rates, he added.

Meanwhile, Casiño has asked the Social Security System (SSS) to first increase the pension of retirees before increasing the monthly contributions of members.

“There should be no talk of an increase unless the pittance that the members receive when they retire is adjusted,” he said. “At present, the minimum SSS pension that a retiree receives is P1,200 a month. This is for someone who has worked at least 10 years as a member of SSS and is in good standing. A member of 20 years receives a measly P2,400 a month. That amount can hardly buy anything in a month. Let us pity our pensioners.” 

In a bill filed at the House of Representatives, Casiño and Bayan Muna colleague Neri Colmenares have proposed P7,000 as the minimum SSS monthly pension.