MWSS approves water rate hike in Metro Manila

MANILA, Philippines — Consumers in the Greater Manila Area will see higher water bills starting next year after the Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO) approved a rate increase for both Maynilad Water Services Inc. and Manila Water Co. Inc.

At a briefing yesterday, MWSS-RO chief regulator Patrick Lester Ty said Maynilad would have an average rate hike adjustment of P7.87 per cubic meter while Manila Water will have an average rate increase of P6.41 per cu.m. starting January.

This is the second tranche of the tariff adjustments within the five-year rate rebasing from 2023 to 2027.

Ty said the upward adjustment takes into consideration inflation and the spending program of the two concessionaires for water security in preparation for El Niño.

“The reason for this is we adjusted rates by inflation. The rate during rates rebasing was based on the 2022 value so it needs to be adjusted every year,” Ty explained.

The chief water regulator said the other factor is “the need to prepare for the El Niño that will be happening in 2024.”

“And we have started preparing for that, and we have directed Manila Water and Maynilad to ensure that there will be no water crisis and to mitigate all the effects of El Niño next year,” he added.

The 2024 rate increase for Maynilad will translate to an increase of P4.74 per month for lifeline customers, P26.61 per month for those consuming below 10 cu.m., P100.67 for those 10 to 20 cu.m. and up to P205.87 for 30 cu.m. above.

For Manila Water, this will mean an increase of P2.96 per month for lifeline customers, P34.13 per month for those consuming below 10 cu.m., P76.68 for those up to 20 cu.m. and P154.55 for up to 30 cu.m. above.

Ty said these figures were studied by the MWSS-RO, which made sure that these follow the United Nations threshold of monthly salaries of regular households.

“We have to make sure these fall within the cap set by the UN with regard to the average monthly water bill of consumers… so this is within the threshold of the monthly salaries of regular households,” he said.

“We feel that this is a necessary burden … to ensure that proper service is given to consumers and there would be water at the tap, especially with the El Niño,” he added.

To ensure that the concessionaires follow through with their capex program, the MWSS-RO said the rate adjustment would be done in tranches to monitor their progress.

“There will still be tranches 3, 4 and 5. We can stop granting the rate hike, we have that option. We monitor their rollout per month and we can put necessary pressure on them – both Maynilad and Manila Water,” Ty said.

The MWSS-RO said that Maynilad’s total rate increase for the rate rebasing period In November last year was estimated at P13.31 to P13.69 per cu.m.

For 2026 and 2027, however, Maynilad’s rate increase will vary depending on whether the new water source – Kaliwa Dam – is completed in or before 2028.

For Manila Water, it was estimated to have a total increase of P19.25 to P20.37 per cu.m. to be staggered over five years.