Protect water consumers, MWSS urged

An advocacy group with more than 100 organizations under its wing asked the regulatory office to protect consumers after the two varying rulings by the arbitration panel on the water firms’ petition for increased rates.

In a statement, the Water for the People Network (WPN) said the decision of the arbitration panel on the petition of the Manila Water recently disallowed the firm to pass on to consumers the costs of its corporate income tax, as well as declared the firm as a public utility.

MANILA WATER CHECKED — A worker from Manila Water checks out the firm’s water meters installed on Agham Road in Quezon City yesterday. A decision of the arbitration panel has ruled against Manila Water’s passing off its corporate income tax to consumers. (Mark Balmores)

WPN said regulators of the Metropolitan Waterworks and Sewerage System (MWSS) should clarify the next steps given the contradicting arbitral rulings.

While the decision of the Manila Water’s arbitration panel is welcome, the WPN reiterated the MWSS privatization remains problematic as exemplified by the conflicting arbitral decisions.

The group noted that the MWSS privatization and its provisions under the concession agreements allow the private water concessionaires to challenge and reverse regulatory decisions.

Already, the Maynilad has demanded that government pay the company P208 million in monthly “losses” due to the delay in the implementation of the arbitration decision.

The WPN added that the appeal of the regulatory office of MWSS against implementing the ruling on Maynilad is strengthened with the release of the arbitral decision on Manila Water’s petition.

Earlier, Maynilad and Manila Water filed an arbitration case in the International Chamber of Commerce (ICC) to contest the MWSS decision denying the water firms’ petition for rate increase.

After the ICC upheld the petition of Maynilad the MWSS deferred from implementing an increase until the ICC has likewise reached a decision on the case of Manila Water.

The MWSS in August 2013 denied the petitions of both Maynilad and Manila Water for a hike in its basic charge after water advocates revealed that the two water firms were, among others, unjustly charging expenses unrelated to the delivery of water service such as corporate income tax, donations, advertising, rest and recreation, and the cost of future projects.