MWSS hopes to approve new water rates by October

Metropolitan Waterworks and Sewerage System (MWSS) is hoping to finally pass the new water rates for Maynilad Water Services, Inc. (Maynilad) and Manila Water Company, Inc. under the current rate rebasing this October or at least before the year ends, a top MWSS official said.

Done every five years, rate rebasing is a review of the water utilities' past performance and projection of their future cash flows.

Its purpose is to set the water rates at a level that would allow both Maynilad and Manila Water to recover their expenditures and earn a rate of return.

The decision on this rate rebasing was supposed to be out in January but it was moved to August.

But at the rate things are going for MWSS-Regulatory Office (MWSS RO) — which just finished another public consultation on the proposed rates — the agency is clearly poised to miss its targets.

However, MWSS Chief Regulator Patrick Ty maintained that a decision must be put in place within the year.

"Once we have an indicative tariff, we will set a date for another public consultation as soon as possible. Probably within 30 days so we can have time to inform the public, so more people can attend," Ty said in a text message.

The last public consultation, according to him, should happen either late August or early September, while the approval will come either late September or early October.

Right now, he said the MWSS RO is in the process of studying the comments and suggestions during the last public consultation to help the agency determine the tariffs for the fourth rate rebasing.

"Basically the public is okay with the Sewerage Projects of the concessionaires and that they understand the need. Also, there's a lot of misinformation going around. So we know where to focus our information campaigns," Ty further said.

Manila Water Corporate Strategic Affairs Group Director Jeric Sevilla Jr. said the proposed tariff rate of Manila Water based on its submitted business plan on March 31, 2017 is R8.30 per cubic meter (/cu.m).

The proposed increase, as per Sevilla, will help the company to pursue projects on water security and service accessibility.

As for Maynilad, Jennifer Rufo, the company's head for Stakeholders Communications office, said their petition is an average increase of R11/cu.m for the 2018 to 2022 rebasing period.