MWSS says Manila Water, Maynilad not allowed to pass on penalties to consumers
Robie de Guzman • October 11, 2019 • 781
MANILA, Philippines – Metropolitan Waterworks and Sewerage System (MWSS) on Friday clarified that Maynilad and Manila Water are not allowed to pass on to consumers any amount of financial penalties that the Supreme Court imposed for violation of environmental laws.
They were also ordered to pay a fine of P322,000 per day for every day of their non-compliance with the Clean Water Act.
“The agency reassures the public that financial penalties imposed by the SC may not be passed on to consumers. It is clearly provided for in the concession agreement,” MWSS chief regulator Patrick Ty said. The SC in its decision last August also ordered the MWSS to pay a fine for the violation.
The MWSS made the statement following reports that water rates will increase as a result of the SC ruling.
Ty assured that whatever additional costs that concessionaires will bear in order to comply with the high court’s ruling will not be passed on to consumers until the next rate rebasing.
“We also audit them and we also engage a third-party audit firm to audit the books of the concessionaires to ensure that they will not be able to recover this expense,” he said.
The chief regulator, however, said that whatever prudent and efficient expense that concessionaires may incur in completing facilities and building of sewerage treatment plants in compliance with the court’s ruling may be passed on to consumers but only after the next rate rebasing in 2023.
“We can also do an expiration payment. that means the two concessionaires would be able to recover the said expense at the end of their concession terms instead of a having it increase, a sudden increase in the water rates,” Ty said.
“’Pag hindi po to prudent and efficient, hindi po ito papayagan na ipasa sa publiko,” he added.
Rate rebasing is done every five years. It is a review of the water utilities’ past performance and projection of their future cash flows to set the water rates at a level that would allow concessionaires to recover their expenditures and earn a rate of return referred by the concession agreements as the appropriate discount rate.
Manila Water on Friday clarified that the company never stated it will pass on fines to consumers, adding that the 780-percent increase included in its motion for reconsideration against the ruling “is what it would have cost to build wastewater facilities to comply with the Supreme Court Decision subject of our Motion for Reconsideration.”
Maynilad and Manila Water have filed separate appeal in court. – RRD (with details from Correspondent Vincent Arboleda)
Maynilad is warning its customers against unauthorized agents going door-to-door to collect payments.
The water concessionaire received reports from customers about individuals visiting their homes, posing as Maynilad employees, and asking for payment. Reports also said these alleged employees would threaten customers of having their water supply cut if they do not pay.
ABISO SA CUSTOMERSNapag-alaman namin na may ilang tao ang nagpapanggap na Maynilad employee o authorized collecting…
Maynilad reminds its customers that no individuals, not even Maynilad employees and its service providers, are not authorized to collect payments. Only authorized channels provided on the water concessionaire’s website are allowed to collect payments. AAC
MANILA, Philippines — Maynilad announced that water service interruption in several areas in Caloocan, Valenzuela, and Quezon City beginning Saturday (December 5) until December 7 at 4:00 a.m.
Meycauayan and Obando, Bulacan also experienced water interruption around 10:00 a.m. on Saturday. Maynilad said the water interruption was due to the low water production at La Mesa Treatment Plant 2. This is also to give way to maintenance work.
Pansamantalang ibababa ang water production ng La Mesa Treatment Plant 2 simula mamayang gabi upang bigyang-daan ang…
MANILA, Philippines – Water concessionaires, Maynilad Water Services Inc. and Manila Water Company Inc. will slash rates in the first quarter of 2021 following the approval of a quarterly adjustment for the water distribution utilities, the Metropolitan Waterworks and Sewerage System (MWSS) announced Wednesday.
The MWSS Regulatory Office (RO) said that the MWSS Board of Trustees has approved its recommendation to implement the 2021 first quarter foreign currency differential adjustment (FCDA) effective January 1, 2021, ”based on its evaluation of the FCDA proposals of the concessionaires.
The FCDA is a quarterly-reviewed tariff mechanism that allows concessionaires to recover losses or give back gains arising from fluctuations in foreign exchange rates, as payments are made for foreign currency-denominated loans that are used to fund the expansion and improvement of water and sewerage services.
It is a corrective mechanism formulated by the MWSS RO to avoid under recovery or over recovery caused by forex movements.
The MWSS RO said east zone concessionaire Manila Water will implement an FCDA of 0.66% of its 2021 Average Basic Charge of P28.52 per cubic meter or P0.19 per cubic meter.
“This is a downward adjustment of P0.14 per cubic meter from the previous FCDA of P0.33 per cubic meter,” the agency said in a statement.
This translates to a decrease of P0.76 per month for Manila Water’s residential customers consuming 10 cubic meters or less, except lifeline customers who are exempt from the quarterly FCDA charges.
Those consuming 20 cubic meters per month and 30 cubic meters per month are expected to have their bills go down by P1.69 and P3.45, respectively.
West zone concessionaire Maynilad, meanwhile, will apply an FCDA of negative 0.39% of its 2021 Average Basic Charge of P36.24 per cubic meter or negative P0.14 per cubic meter.
“This is also a downward adjustment of P0.05 per cubic meter from the previous FCDA of negative P0.09 per cubic meter,” the MWSS RO said.
This would mean a P0.05 decrease in the monthly bill of Maynilad’s residential customers consuming 10 cubic meters or less.
Those consuming 20 cubic meters per month and 30 cubic meters per month are expected to have a decrease of P0.64 and P1.30, respectively on their bills this coming quarter.
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