By Sheldeen Joy Talavera, Reporter
WATER RATES in Metro Manila will rise starting January after the authority consented to the price adjustments requested by the region’s two concessionaires, potentially contributing to inflationary trends.
The Metropolitan Waterworks and Sewerage System (MWSS) Regulatory Office permitted a P5.95-per-cubic-meter increase for Manila Water Co., Inc. and P7.32 per cubic meter for Maynilad Water Services, Inc.
The new rates will come into effect on Jan. 1, 2025, as stated by Patrick Lester N. Ty, chief regulator of the MWSS Regulatory Office, during a news conference on Thursday.
Clients supplied by Manila Water in the eastern zone consuming 10 cubic meters or less will see an increase of P24.68, bringing their monthly charge to P254.83, based on a rate matrix provided by the regulatory body.
Consumers using 20 and 30 cubic meters will observe their monthly expenses rising by P54.79 and P111.83, respectively. Additionally, low-income customers who use under 10 cubic meters will experience a P2.87 hike, bringing their total to P91.40 a month.
Meanwhile, Maynilad patrons in the western zone using 10 cubic meters or fewer will incur an extra P20.08, whereas those who use 20 cubic meters will see their bills increase by P75.89. Clients consuming 30 cubic meters will pay P155.32 more.
Low-income lifeline consumers using 10 cubic meters of water will face an additional charge of P10.56, totaling P151.04 monthly.
The rate hikes are expected to exert additional inflationary pressures, as noted by Jonathan L. Ravelas, senior adviser at the consulting firm Reyes Tacandong & Co.
These adjustments will elevate household expenditures and spike the operational costs for industries reliant on water. He emphasized that these companies may pass on the costs to consumers through price increases.
“While essential for infrastructure enhancement, these hikes will contribute to immediate inflationary pressures,” Mr. Ravelas remarked in a Viber message. “Policymakers must carefully monitor and manage these effects.”
This increase marks the third phase of sanctioned tariffs for the 2023-2027 rate rebasing period. In 2022, the MWSS board approved elevated rates on a phased basis for five years commencing in January 2023.
Rate rebasing occurs every five years, complemented by a performance evaluation and validation of the projected cash flows of the two concessionaires. It also determines water tariffs in a way that enables water suppliers to recuperate their expenditures.
“We observe their capex (capital expenditure) investments [to confirm] they are genuinely allocating the required capex for the rate rebasing,” Mr. Ty communicated to the press. “Before permitting a tariff increase, we will review the actual expenditures, not just their goals.”
“Provided a reasonable target is achieved, we will then sanction the tariff modification,” he added.
As of November, Manila Water had invested P32.67 billion of its capex, accounting for 81% of the target for 2023 to 2024, as reported. Maynilad’s capex expenditure has reached P47.59 billion, 83% of the goal for the two-year timeframe.
In an announcement, Maynilad expressed that its initiative to invest over P163 billion to enhance the water and wastewater infrastructure in the western zone “requires the prompt implementation of these phased adjustments.”
“We are diligent in fulfilling our business plan commitments and are glad that the corresponding tariff adjustments are being executed as intended,” it added.
Inflation in the Philippines accelerated to 2.5% in November from 2.3% in October, although it remains within the central bank’s 2.2%-3% prediction for the month.
Manila Water caters to the eastern zone system of Metro Manila, including parts of Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, sections of Quezon City and Manila, as well as various towns in Rizal province.
Maynilad services the cities of Manila, excluding San Andres and Sta. Ana. It also operates in Quezon City, Makati, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon. Additionally, it supplies water to the municipalities of Cavite, Bacoor, and Imus, along with the towns of Kawit, Noveleta, and Rosario, all located in Cavite province.
Metro Pacific Investments Corp., which holds a majority stake in Maynilad, is among three Philippine branches of Hong Kong-based First Pacific Co. Ltd., the other two being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a division of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an investment in BusinessWorld through the Philippine Star Group, which it controls.
