Metro Manila (CNN Philippines, October 10) — Manila Water warned that water rates could surge to nearly ninefold following the nearly ₱1 billion fine slapped on by the Supreme Court for its supposed failure to set up sewerage systems a decade ago.
In a statement, the private firm serving Metro Manila’s east zone said they will be pushed to raise water rates by 780 percent or around ₱26.70 per cubic meter (cu.m.) if the high court’s ruling “is not reversed.”
The high court in August charged Manila Water and west zone concessionaire Maynilad fines of ₱921.46 million each for their failure to put up sewerage systems in their service areas, citing provisions of the Clean Water Act, which took effect in 2009. The requirement was made to ensure proper disposal of waste water.
Manila Water currently imposes an average basic charge of ₱28.52/cu.m., coming from an ₱0.69/cu.m. approved by regulators in September.
The Ayala-owned concessionaire filed an appeal before the SC on October 2, asserting that Section 8 of the law only required Manila Water, Maynilad, and their regulator Metropolitan Waterworks and Sewerage System to just “interconnect the existing water lines” of their customers to available sewer lines.
“The law… also penalizes only the polluters or their positive acts of commission. An act of omission such as a failure to interconnect is not punishable,” Manila Water said.
The company likewise warned of worse traffic for the capital if they would have to start digging and laying out sewage lines in the next five years.
“If the concessionaires were to compress into five years as the SC ruling wants what was planned as a 40-year project, the hundreds of billions of pesos required would result to an increase in the water bill of subscribers, leaving them less money for other necessities and triggering higher inflation,” Manila Water added, noting that this will involve digging up hundreds of kilometers of roads, including EDSA.
This is not the first time that utility firms servicing Metro Manila found themselves in hot water. MWSS ordered Manila Water to pay a ₱1.134-billion fine over the water crisis that left customers in the east zone with no water for days.
