MWSS approves rate hike of Maynilad, Manila Water starting 2023

Published November 18, 2022, 8:02 AM

by Joe Priela

The Metropolitan Waterworks and Sewerage System (MWSS) Board of Trustees has approved the request for water service rate increase of both the Manila Water and Maynilad.

The MWSS approved the requests of the two water concessionaires after a review of the arguments they raised.

The Manila Water sought for water rate hike, saying it is needed to fund its P180 billion operational expenses in the next five years.

The Manila Water service areas cover 23 cities and municipalities in Metro Manila and Rizal: Mandaluyong, Makati, Pasig, Pateros, San Juan, Taguig, Marikina, and parts of Quezon City and Manila. The towns of Angono, Baras, Binangonan, Cainta, Cardona, Jalajala, Morong, Pililia, Rodriguez, Tanay, Taytay, Teresa, San Mateo and Antipolo in the province of Rizal.

For Manila Water, the rate hikes will be as follows: P8.04 per cubic meter (cm3) hike for 2023, P5.00/m3 for 2024, P3.25/m3 for 2025, P1.91/m3 for 2026, and P1.05/m3 for 2027. Together with “new water” source, the rates for the years 2026 and 2027 may increase to P3.00/m3 and 1.08/m3, respectively.

Maynilad, on the other hand, requested for the water rate hike for the P150 billion expansion of its service areas.

Maynilad covers 17 cities and municipalities that comprise the West Zone of the Greater Metro Manila area: Manila (all but portions of San Andres and Sta. Ana), Quezon City (west of San Juan River, West Avenue, EDSA, Congressional, Mindanao Avenue, the northern part starting from the Districts of Holy Spirit and Batasan Hills), 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 the province of Cavite.

For Maynilad, there will be a P3.29/m3 hike for 2023, P6.26/m3 for 2024, P2.12/m3 for 2025, P0.84/m3 for 2026, and P0.80/m3 for 2027. With the “new water” source, the rates for the years 2026 and 2027 may increase to P1.01/m3.

The Environmental Charge will increase from 20 percent to 25 percent starting 2023, and from 25 percent to 30 percent starting 2026.

In addition, Sewer Charge will increase from 30 percent to 32.85 percent starting 2023, subject to Manila Water’s attainment of sewer coverage of 30 percent by the end of 2025.

For Maynilad, the Environmental Charge will increase from 20 percent to 25 percent starting January 2025. It will be subject to Maynilad’s attainment of sewer coverage of 25 percent by the end of 2024.

Starting 2024, implementation of the staggered Rebasing Convergence Adjustment shall be subject to Maynilad’s attainment of water supply, continuity, and coverage targets, as provided in its 2022 Approved Business Plan.

 
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