Manila Water seeks rate increase

MANILA, Philippines — Razon-led Manila Water Co. Inc. is seeking to implement a rate increase of P20 per cubic meter from 2023 to 2027 for its mandatory rate rebasing.

Manila Water has proposed an increase of P8.04 per cubic meter in 2023, P5 in 2024, P3.25 in 2025, P1.91 in 2026 and P1.05 in 2027, or a total of P19.25 per cubic meter, said MWSS chief regulator Patrick Ty in a text message to The STAR.

But following the review of the Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO), the indicative tariff for each year has remained the same except for 2026, which was increased from the proposed P1.91 to P3 per cubic meter, or a total of P20.34 per cubic meter.

“What was presented was the indicative tariff. It’s not yet approved. Manila Water made a presentation of their justification,” Ty said.

Manila Water is spending P181 billion for its capital investment program in the east zone during the five-year period, corporate communication affairs group head Jeric Sevilla said in a text message.

Broken down, P105 billion is for capital expenditure (capex) and P76 billion for operating expenditure (opex), Sevilla said.

“(It’s) a total spend of P181 billion on our service improvement plan anchored on water security, service accessibility and continuity and environmental sustainability,” he added.

The MWSS-RO conducts a rate rebasing exercise every five years pursuant to the concession agreement entered into by the MWSS with water concessionaires.

Rate rebasing is a periodic performance review and general tariff adjustment, which sets the maximum rates that the concessionaires may charge for their services.

With the process, water rates will be adjusted depending on the performance, expenses, earnings, unrecovered investments and service improvement plans of water concessionaires.

Prior to the determination of the rates, the MWSS-RO holds a rate rebasing public consultation drive (PCDr) to gather valuable inputs with respect to current and future water and sanitation and sewerage developments and plans of water concessionaires.

The PCDr aims to provide a venue for discussion and addressing prevailing gender-related issues and concerns of stakeholders on water, sewerage and sanitation services as well as for exploring good practices in providing gender-responsive services.