SENATORS are bristling over the “warning” issued by private water concessionaires that complying with a Supreme Court order slapping them with nearly P2 billion in fines for breach of their commitment to set up sewerage systems in timely fashion could force them to pass on the costs to consumers.
“Increasing rates by 780 percent is unconscionable and downright a highway robbery. No business in the world earns 780 percent in profit! Government regulators should never allow this inhumane increase,” Sen. Sherwin Gatchalian said in a statement.
“And why should the fine be passed on to consumers. Were they the ones who broke the law? This isn’t right and so unfair. It’s the people who already suffered from bad service, and yet, they will bear the brunt of the penalties,” Gatchalian added, in a mix of English and Filipino.
He noted that “both Manila Water and Maynilad have been given ample time to comply with the Clean Water Act. The government should not let Manila Water threaten to hold the public hostage with exorbitant price increases just so it could blackmail the Supreme Court into reversing its decision.”
Sen. Aquilino “Koko” Pimentel lll joined over the weekend the mounting opposition against the looming imposition of a 780-percent increase in water rates.
The protest was prompted by reports that Manila Water Co. intends to pass on to consumers the heavy penalties imposed by the Supreme Court on the utility firm, jointly with the other private concessionaire, the Maynilad Water Services Inc., and the regulator, Metropolitan Waterworks and Sewerage System (MWSS).
“Passing on to consumers the fines is not only unfair but also utterly baseless. An additional P26.70 per cubic meter in their water bill is a heavy burden on our people. They’re burdened enough as it is, why make it harder for them?” Pimentel said in a mix of English and Filipino.
Pimentel protested as the MWSS issued a statement that under Manila Water’s concession agreement the utility firm cannot recover said penalties by passing it on to consumers.
“It cannot be that the public will be made to pay for their environmental violations. It must be noted that consumers already suffered from the monthlong water interruption last June,” Pimentel said, adding that the private stock owners of the water concessionaires must bear the cost of their penalties, this being the nature of the business they entered.
“Less or no profit for them this time. Their profits are not guaranteed by their customers. They must run their businesses professionally, ethically, and lawfully,” the senator added.