bloc formally asks for congressional reviewof MWSS deals with
and Manila Water
bloc in the House of Representatives is formally seeking a congressionalreview of the concession agreements between the Metropolitan Waterworks and SewerageSystem (MWSS) and water concessionaires
Water Services Inc. and Manila Water Company, and if warranted, is urging the chamber to take action to stop any impending water rateincreases pending termination of the review.Through House Resolution 14, Reps. Fernando Hicap (Party-list,
), Neri Javier Colmenares (Party-list,
), Luzviminda Ilagan and Emmi de Jesus (Party-list,Gabriela), Antonio Tinio (Party-list, ACT Teachers) and James Mark Terry Ridon (Party-list,
) called on the House Committee on Government Enterprises and Privatization toconduct a comprehensive review of the MWSS deals with the two water concessionaires.
and Manila Water recently announced they are seeking to increase the averagewater charge. Aside from the basic water charge, they will also hike other tariffs that arecomputed based on the basic charge, including but not limited to the Foreign CurrencyDifferential Adjustment (FCDA), environmental charge and Value Added Tax (VAT).According to the
bloc, the impending water rate increase means profit for Maynilad and Manila Water. It said the “adjustment schemes” under the guise of privatizationwould only benefit the big local and foreign businesses.Ordinary citizens, particularly the poor, are the ones who will be affected by these highwater rates and impending increases. The government must exercise its decisive political power to protect the interests of the consumers for the safe, affordable and efficient water services,” saidthe group.The group cited that based on the urgent appeal submitted by
Party-list to theMWSS to stop impending water rate hikes and onerous charges,
is seeking to raise theaverage water tariff by 22% or from P28.89 to P34.12 per cubic meter. Meanwhile, Manila Water wants an increase from P33.97 to P44.27 per cubic meter. This is equivalent to an increase in the basic charge of P10.30 per cubic meter and P5.83 per cubic meter, respectively.The
bloc cited the said increases are part of the rebasing process. It said that based on the computation of IBON and advocacy group Water for the People Network (WPN),the all-in tariff is expected to increase by P13.71 per cubic meter for
and P7.81 per cubic meter for Manila Water. “For an ordinary household consuming 30 cubic meters per month,water rates could increase by as much as P411 for
and P234.30 for Manila Water consumers,” it said.The MWSS earlier had said the impending water rate hike was expected to take effect lastJuly 1, 2013 once the rate rebasing process is completed.
NR # 3162BJULY 12, 2013