MEMBERS of Anakpawis Partylist trooped to the Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS-RO) in Quezon City today to present an urgent appeal for MWSS to stop any planned water rate hikes this year based on the impending rate rebasing program of private water firms Maynilad Water Services Inc. and Manila Water Company.
According to Anakpawis Rep. Fernando Hicap, after the barrage of public opposition on the water firms’ rate rebasing scheduled to take effect next month, Manila Water and Maynilad were forced to lower their rates, but have not totally withdrawn their intention and plans to raise water rates in the future.
“They only postponed the rate hikes. The 14.2 million water consumers must continue to oppose the expensive water rates unjustly imposed and collected by Maynilad and Manila Water.”
“The minimal decrease in water rates starting July is nothing compared to the sky-high water rate hikes that Maynilad and Manila Water will impose once their rate rebasing plans are approved,” Hicap said. “Consumers and the public must still brace for higher water rates in the future. That is the bane and curse of privatization.”
Earlier this week, Manila Water said that its rates will decrease by P0.54 per cubic meter due to foreign currency exchange movements. Maynilad, on the other hand, recalled its earlier announcement of rate increase of P3.01 and declared a decrease in rates. From P46.56 per cubic meter in the second quarter, Maynilad rate is set to go down to P41.77 per cubic meter.
“Consumers must remain vigilant. Manila Water and Maynilad can easily increase their rates through other price adjustment mechanisms.”
“Aside from the expensive basic charges, Maynilad and Manila Water have been unjustly double-charging and collecting foreign exchange tariffs from consumers. Aside from the fixed P1 per cubic meter for the Currency Exchange Rate Adjustment (CERA) charged to consumers, these water firms are also collecting Foreign Currency Differential Adjustment (FCDA). Both tariffs are meant to allow Maynilad and Manila Water to recover or compensate foreign exchange movements arising from MWSS loans and concession fee payments.”
“These companies are still not absolved of double-charging consumers through the FCDA and CERA collections. They must also explain the proceeds of the environmental charge,” the solon said.
The group urged MWSS to compel Maynilad and Manila Water to be transparent with their collections and profits. “Up to now, water firms have yet to explain the status of unfinished projects including Wawa Dam and Laiban,” Hicap said.
“We demand a full and independent review of the 25-year Concession Agreements thata MWSS entered into with Maynilad and Manila Water through the privatization program that took effect in 1997.”
“The MWSS must consider this Urgent Appeal to stop all impending water rate hikes, the imposition of onerous charges and taxes and any rate adjustment by Maynilad and Manila Water.”
In its appeal to the regulatory office, Anakpawis presented the following demands:
· Stop the unjust water rate increase
· Stop the double-charging of Maynilad and Manila Water of CERA and FCDA charges
· Conduct an independent comprehensive review of the concession agreements between MWSS, Maynilad and Manila Water
The group will file a resolution in the 16th Congress calling for a comprehensive review of Maynilad and Manila Water’s concession agreements.
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