The Makabayan bloc has filed a resolution urging the House of Representatives and the Senate to mandate the immediate suspension of the implementation of the water rate increase beginning this month, amid high prices of goods and basic services and lingering economic downturn.
In House Joint Resolution 17 filed last Monday, Gabriela Party-list Rep. Arlene Brosas, Act Teachers Rep. France Castro and Kabataan Rep. Raoul Manuel said the Metropolitan Waterworks and Sewerage System (MWSS) has given the green light to Metro Manila’s two main water concessionaires to increase rates gradually over the next five years, beginning in January 2023 until 2027.
“The water rate hike is implemented amid an unprecedented economic crisis, high inflation rate, lack of adequate jobs, and low wages. This will only exacerbate the plight of poor families who are struggling to make ends meet,” said the lawmakers in the resolution.
Manila Water Co. and Maynilad Water Services Inc.’s request for rate rebasing adjustments were approved by the MWSS Board last November 10.
“Philippine inflation rate remains unbearably high at 8.1 percent as of December 2022, the highest level since November 2008 or 14 years ago. It is expected to rise further in the coming months due to further commodity price hikes and with costlier payments for utilities,” the resolution read.
As a result of the all-time high inflation rate, the lawmakers said the National Capital Region’s real wage is estimated at P490, while other regions are experiencing lower real wages.
Manila Water officials said the hike is necessary to supplement its P180 billion operational budget in the following years.
In the resolution, the lawmakers said Manila Water rates would rise by P8.04 per cubic meter in 2023, P5 in 2024, P3.25 in 2025, P1.91 in 2026, and P1.05 in 2027. Rate increases for 2026 and 2027 may reach P3.00 and P1.08, respectively.
“Manila Water consumers who consume 10 cubic meters will have an increase of P41.19 on their monthly bills, from P151.23 to P192.42. Households with 20 cubic meters will pay P425 from P333.47, an increase of P91.53. There will be an additional P187.10 charge for those who consume 30 cubic meters, from P679.02 to P866.12,” the resolution added.
On the other hand, Maynilad will implement a rate increase of P3.29 per cubic meter in 2023, P6.26 in 2024, P2.12 in 2025, P0.84 in 2026, and P0.80 in 2027.
Maynilad’s rate adjustment for 2026 and 2027 will depend on the completion of the Kaliwa Dam project. Rates are expected to rise by P1.01 in the years 2026 and 2027 if the project is completed.
The resolution said Maynilad consumers who consume 10 cubic meters would see an increase of P5.28, P20.29 for consumers who use 20 cubic meters, and P41.71 for 30 cubic meters.
“With the rate increase, Maynilad will supposedly be able to fund P150 billion in water and wastewater projects over the next five years,” it said.
The resolution added that 23 cities and municipalities in Metro Manila and Rizal would be affected by the rate rebasing adjustments of Manila Water.
Meanwhile, Maynilad’s rate increase will have an impact on 17 cities and municipalities covering the West Zone of the Greater Metro Manila.