Congress, PRRD asked to avert collection of ‘unconscionable’ water rates

Lawmakers called on Congress and the executive department to address alleged overcharging of water consumption by private concessionaires operating in Metro Manila.

Deputy Minority Leader and COOP NATCCO Party-list Rep. Anthony Bravo urged President Rodrigo R. Duterte (PRRD) to exhaust all legal remedies to block the execution of an Arbitral Tribunal decision ordering government to pay Maynilad Water Services, Inc. 13.4 billion in compensation for the alleged delay in the implementation of water hikes from 2013-2017.

Bravo assailed the Arbitral Tribunal’s decision

noting that Maynilad earned a profit of 124.75 billion from 2013-2015.

He described as “highly unconscionable” the private water firm’s bid to collect more at the expense of Filipino water consumers.

“In the years Maynilad said it needed tariff hikes to remain profitable, Maynilad earned billions,” said the solon from the cooperative sector.

Maynilad has sought the payment of additional profits after the Arbitral Tribunal awarded 13.4 billion in compensation for alleged losses resulting from the delayed implementation of tariff hikes for the rebasing period from 2013 to 2017.

Bravo said government should appeal the Tribunal’s decision, adding the Duterte administration must exhaust all legal remedies to fight what is clearly an injustice against Filipinos, especially those being serviced by Maynilad.

“According to its own annual reports Maynilad posted a net income of 6.94 billion pesos in 2013, 8.26 billion pesos in 2014, and 9.55 billion pesos in 2015,” revealed the lawmaker.

“How can they say they needed tariff hikes on those years when they were making profits hand over fist?”, the lawmaker queried.

Bravo said the government should exhaust all legal remedies to contest the award, and should also consider talking to Maynilad executives about giving up their claim.

“I do not think that this is unreasonable given their profit margins and given the direction of our economy,” stressed Bravo.

The solon added that given the limited financial resources of government and the numerous programs that require funding, the government could not afford to give up billions “to improve the bottomline of one of the most profitable companies in the country.”

“I recognize that companies like Maynilad have an obligation to keep their shareholders happy. As one of its executives said, it’s the welfare of their shareholders that motivates their organization. That being said, as a public utility, Maynilad exists not just to rake in profits but to a provide a basic need to the 9.2 million Filipinos it services,” Bravo explained.

Water hike inquiry Meanwhile, Gabriela Party-list Reps. Emmi de Jesus and Arlene Brosas filed House Resolution 1363 calling for an investigation into the quarterly hikes in water supply basic charges imposed by water firms like Maynilad.

InHouse Resolution 1363, the Gabriela solons said the Foreign Currency Differential Adjustment contained in the concession agreement between state-owned Metropolitan Waterworks and Sewerage System and the concessionaires should be suspended, adding that this has only granted private water agencies an unjustified reason to “jack up water rates through the years with the general depreciation of the peso, and has led to the latest rate hike for the third quarter.”

Gabriela lawmakers said the MWSS approved a rate hike for the third quarter of 2017 equivalent to 0.80 percent of the average basic charge of 134.51 per cubic meter or 10.27 per cubic meter.

“With the refusal of the Duterte administration to reverse the policy of water privatization, bigger water hikes loom for Filipino consumers especially as the Philippine peso continues to skid on dismal domestic economic indicators and jittery external markets brought about by the protracted global economic crisis,” Brosas said.