Wednesday 22 January
Oct 11, 2019 @ 19:38

MWSS won’t let Manila Water, Maynilad pass on SC fines to consumers


Water concessionaires Manila Water Co. and Maynilad Water Services Inc. can not let their customers bear the huge fine imposed on them by the Supreme Court, the Metropolitan Waterworks and Sewerage System said.

This after Manila Water warned that water rates could increase by 780 percent or P26.70 per cubic meter if the SC ruling directing the two water firms to pay a fine amounting to nearly P2 billion is not reversed.

“We reassure the public that we will not allow the two concessionaires to recover fines from the public. We want to reassure them that we are on top of this,” said MWSS chief Patrick Lester N. Ty.

Passing on costs to consumers is prohibited under the concession agreement entered into between the government and the water utility firms.

The penalties, interest charges on late payments, financing costs, bad debt provisions, and depreciation provisions are excluded in the items to be recovered by the companies.

The two firms were fined for violation of the provisions of Republic Act 9275 or the Philippine Clean Water Act (CWA).

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