Maynilad presses MWSS on rate hike
Maynilad Water Services, Inc. is pressing regulator Metropolitan Waterworks and Sewerage System ( MWSS) to allow it to hike rates as upheld by the International Chamber of Commerce Appeals Panel in December 29, 2014.
In a statement, the firm said Maynilad and MWSS received the panel’s decision on its petition to increase its rate for the period 2013-2017 on January 5 and 7, respectively.
Maynilad said it has submitted to MWSS on January 8 its proposal for staggered implementation of the rate increase over the remaining 3 years, with a request that the MWSS Board approve the 2015 Tariff Table so that Maynilad can implement it.
The water concessionaire also offered to stagger implementation of the rate increase so as to mitigate its impact to its customers.
MWSS exercised its right to utilize the 30-day period from its receipt of the award to seek clarification of any part of the award. However, it did not file a request for clarification.
“The 30-day period having lapsed, Maynilad again sought the MWSS Board’s approval of the 2015 Tariff Table consistent with MWSS’ representation to Maynilad and the Appeals Panel that it will implement whatever the decision of the Appeals Panel is,” the firm said.
Maynilad noted that, “to date, the MWSS Board has not yet given its approval for the implementation of the new tariff.”
The firm said “the immediate approval of the tariff increase by MWSS will enable Maynilad to continue its service improvement projects so that more people can benefit from improved delivery of water and wastewater services.”
The other day, Maynilad announced it had raised its capital expenditure budget for the reduction of nonrevenue water (NRW) by 25 percent to 3.2 billion in 2015 from 2.2 billion last year.
Of the said amount,
2.1 billion would be dedicated for selective pipe replacement in the areas of Caloocan, Manila, Parañaque, and Cavite.
Another 680 million have been allotted for meter management, which aims to improve billing accuracy and reduce meter malfunctions that contribute to commercial losses (i.e., losses due to theft and inaccuracies in metering and data handling).
Maynilad earmarked 400 million for the establishment and maintenance of District Metered Areas (DMA) that allow for more effective monitoring and management of water supply and pressure, as well as easier identification of leaks through diagnostics, assessment, and leak repair.
The rest of the budget will be used for leak detection equipment and technical services.
“In 2014, we have successfully reduced water losses to 33 percent from 35 percent in 2013. This year, we want to do more. Our increased investment in our NRW management program aims to recover more water that can be reallocated for the use of our customers,” said Maynilad president Ricky P. Vargas.
NRW is the gap between the amount of water put into the distribution system and the amount of water for which customers are actually billed.
It reflects volumes of water being lost through leaks (real/physical losses), and water not being invoiced or not being accurately measured (apparent/commercial losses).
Maynilad is the largest private water concessionaire in the Philippines in terms of customer base. It is the agent and contractor of the Metropolitan Waterworks and Sewerage System (MWSS) for the West Zone of the Greater Manila Area.
This is composed of the cities of Manila ( certain portions), Quezon City (certain portions), Makati (west of South Super Highway), Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon all in Metro Manila; the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario, all in Cavite Province.