The Metropolitan Waterworks and Sewerage System (MWSS) board has approved the proposed rate hikes of Manila Water Co. Inc. and Maynilad Water Services Inc. which will be implemented in tranches starting next year.
Manila Water will implement an P8.04 per cubic meter increase in 2023, P5 per cubic meter in 2024, P3.25 per cubic meter in 2025, P3 per cubic meter in 2026, and P1.08 per cubic meter in 2027.
Environmental change will rise to 25 percent from 20 percent starting 2023, and further to 30 percent starting 2026, while sewer charge will increase to 32.85 percent from 30 percent subject to Manila Water’s attainment of sewer coverage of 30 percent by the end of 2025.
The adjustments will translate to a P41.19 increase in the monthly bills of customers consuming 10 cubic meters, P91.53 for those consuming 20 cubic meters, and P187.01 for those consuming 30 cubic meters.
As for Maynilad, a rate hike of P3.29 per cubic meter will be implemented for next year, P6.26 in 2024, P2.12 in 2025, and P1.01 for 2026 and 2027.
Environmental charge will increase to 25 percent from 20 percent starting January 2025, subject to Maynilad’s attainment of sewer coverage by end-2024.
Customers of Maynilad consuming 10 cubic meters would see a P5.28 increase in their monthly bills, P20.29 for those consuming 20 cubic meters, and P41.71 for those consuming 30 cubic meters, as a result of the adjustments.
“These rate adjustments will enable Manila Water and Maynilda to provide the highest quality of water, sanitation, and sewerage services that their customers deserve,” the MWSS said.
“These include the development of additional water sources that will ensure continuous improvements in the supply of safe drinking water as well as the expansion of environmentally safe wastewater services within the concession areas,” it added.
The rate rebasing is a periodic performance review and general tariff adjustment, which sets the maximum rates that the concessionaires may charge for their services at a level that will allow them to recover over the life of the concession their investment, capital, operating, and maintenance expenditures prudently and efficiently incurred and to earn a rate of return on these expenditures.