As Maynilad rate hike looms, MWSS plays for time
MANILA, Philippines–Maynilad Water Services Inc. may still be expected to raise its basic rates, but not any time soon as its rate rebasing bid has not yet completely hurdled the arbitration process.
Joel C. Yu, chief regulator at the Metropolitan Waterworks and Sewerage System, said Thursday the MWSS will ask the arbitration panel to clarify whether the increase of P3.06 per cubic meter—as the publicly listed majority shareholder of Maynilad disclosed—was accurate.
Yu was referring to Metro Pacific Investments Corp. (MPIC), which holds interests in water utilities through DMCI-MPIC Water Company Inc., the holding company that operates Maynilad, and which disclosed the arbiters’ decision last Jan. 5.
“We want to clarify whether the decision indeed results to an average tariff increase of P3.06,” Yu said.
“The numbers that [MPIC disclosed to the Philippine Stock Exchange] are different from the figures appearing in the [decision that we received],” he added.
Maynilad officials said their lawyers received a copy of the decision last Monday. According to the MWSS, the Office of the Government Corporate Counsel received its copy only in the afternoon of Jan. 7.
In early 2013, Maynilad submitted to the MWSS Regulatory Office a five-year business plan that requires an increase in the company’s basic charges by P8.58 per cubic meter.
But in September that year, the MWSS-RO instead ordered Maynilad to cut rates by P1.46 per cubic meters for the five years until 2017 or 49 centavos per year.
When pressed to elaborate of the supposed difference between MPIC’s disclosure and the decision that MWSS received, Yu said he was not at liberty to give details from the 136-page decision considering the confidential nature of arbitration with the International Chamber of Commerce.
But arbitration provides for a 30-day period in which the parties involved may seek clarifications on a decision, the regulator reiterated.
“We want to know whether the differing figures [that we discovered] is just a matter of presentation,” Yu said.
