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Sep 14, 2017 @ 11:12

Court orders immediate implementation of Maynilad’s rate adjustments

 

Water rates in the western part of Metro Manila and some parts of Cavite are set to go up after the Quezon City Regional Trial Court granted the petition for confirmation and enforcement of arbitral award filed by Maynilad Water Services Inc.

Maynilad president Ramoncito S. Fernandez, said that “this decision confirms that the concession agreement works, and restores investor confidence in the public-private partnership program of the government. This also ensures the continued implementation of Maynilad’s capital expenditure projects that are intended to benefit further our customers.”

The petition was filed in July 2015 following the refusal of the Metropolitan Waterworks and Sewerage System to implement the final award dated Dec. 29. The Final Award upheld the 13.41 percent rebasing adjustment that Maynilad proposed for the fourth rate rebasing period covering January 2013 to Dec. 31, 2017.

“Once the RTC decision confirming the Final Award and ordering its immediate implementation becomes final and executory, Maynilad’s 2017 average basic charge would increase by 9.89 percent which represents the balance of the 13.41 percent rebasing adjustment that has yet to be implemented,” Metro Pacific Investments Corp. said in a disclosure to the stock exchange.

This will translate to an average increase of P3.41 per cubic meter of the 2017 average basic charge of P34.51/cu.m.

For households with monthly water consumption of 10 cu.m. or less, this would mean an increase of P11.56 in their monthly bill, from P118.61 to P130.18. For those with monthly water consumption of 20 cu.m., it will be P43.76 per month, from P444.29 to P488.05, or an increase of P2.19/cu.m.

“If and when implemented, the tariff increase would also ameliorate Maynilad’s claim against the Philippine Republic for an ongoing revenue shortfall in this respect, as recently determined by a three-man arbitral tribunal that unanimously upheld Maynilad’s claim against the Philippine Republic,” MPIC said.

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