SC orders Manila Water, Maynilad: Answer petitions vs rate increase

MANILA, Philippines - The Supreme Court (SC) has deferred action on a bid to stop the impending water rate increases of Manila Water Co. and Maynilad Water Systems Inc., but the court ordered the two firms to answer the petitions against the rate adjustment.

SC spokesman Theodore Te said the justices tackled yesterday the petition filed last week by Water for All Refund Movement (WARM), Water Watch Coalition Inc. and Alyansa ng Mamamayang Naghihirap Inc. (Almana) in their regular session but did not immediately issue a halt order that the petitioners have sought.

“There was no action taken on the request for TRO (temporary restraining order),” he said in a press conference.

Instead, the high court decided to first seek comments from respondents Manila Water, Maynilad and Manila Waterworks and Sewerage System (MWSS) before acting on the TRO plea.

Te said the water companies were given 10 working days from receipt of notice to comply with the order.

Without the TRO, the two water concessionaires may for now proceed with their planned water hike increases.

In their petition, the groups said Maynilad and Manila Water conducted public consultations with various groups on the proposed water rate hike but did not present data to justify the increase.

They also asked the high court to “declare that respondents are public utilities subject to the rules and regulations of public service laws and the auditing powers of the Commission on Audit.”

The groups alleged that the two firms seemed to have been given too much “sovereign power” in water infrastructure projects, which they allegedly use to justify higher water rates, through a concession agreement the companies signed in February 1997 with the MWSS.

They also criticized the water concessionaires for their “over billing or advance collections” to fund water infrastructure projects whose construction has yet to be completed or had been mothballed.