Maynilad, Manila Water hit for ‘hidden rate hikes’

WATER concessionaires Maynilad Water Services Inc. and Manila Water Co. were slammed on Thursday over the alleged “hidden increases” in water rates implemented this month.

“Consumers should take a closer look at their November water bills to see these changes. They will be in for a rude surprise,” Bagong Alyansang Makabayan ( Bayan) said.

Bayan Secretary General Renato Reyes said the water rate increases of Maynilad and Manila Water approved by the Metropolitan Waterworks and Sewerage System (MWSS) in October took effect in November despite a notice of dispute filed by Maynilad that sought a heftier increase.

“The increases were the result of the rate rebasing exercise which takes place every five years. Maynilad was granted a P5.73 per cubic meter rate hike spread over five years while Manila Water was granted a P6.26 per cubic meter rate hike also spread over five years,” he said.

The group said it would question the increases before the MWSS because the two concessionaires did not disclose to consumers through public hearings that percentages of the basic charge account for an increase in the environmental and sewerage charges as well.

Reyes said the environmental charge is 20 percent of the combined basic charge and foreign currency adjustment. The sewerage charge, on the other hand, is 20 to 30 percent of the basic charge for commercial and industrial customers. Any increase in the basic charge results in an automatic increase in the environmental and sewerage charges.

Environmental fees as a percentage of the basic rates have gone up from 10 percent to 20 percent over the past 20 years, according to the group. However, only 14 percent of the total service areas are covered by the sewerage services of Maynilad and Manila Water.

“With the continuing increases in the environmental and sewerage charges, despite the low sewerage coverage in the service area, what are consumers actually paying for? How is this fund being actually used? Where does the money go?” Reyes asked.

“It would appear that private water concessionaires were granted an automatic increase in the environmental and sewerage charges, without the benefit of public hearings to explain why concessionaires are entitled to such adjustments,” he added.

Reyes called on government regulators to explain the “hidden increases.” He also urged Congress to investigate the matter.