MWSS still not acting on Maynilad rate hike plea
MANILA, Philippines–Regulators on Monday said they would not act on Maynilad Water Services Inc.’s tariff hike petition based on recommendations of international arbiters, preferring to wait for the arbiters’ decision on a similar case involving Manila Water Co. Inc.
“We want to see the [Manila Water] decision first [and compare it with the decision on Maynilad], to ensure consistent implementation of the provisions of the concession agreements,” said Joel C. Yu, chief regulator at the Manila Waterworks and Sewerage System Regulatory Office (MWSS-RO).
Yu said in a briefing that there were matters that were identical to both cases.
In early 2013, the water service firms submitted to the MWSS-RO a five-year business plan that called for an increase in their basic charges by P8.58 per cubic meter.
Instead of granting the petition, the MWSS-RO in September that year issued a memorandum ordering Maynilad to cut rates by P1.46 per cubic meters for the five years until 2017 or 49 centavos per year.
Similarly, Manila Water proposed to raise rates by P5.83 per cubic meter, but the MWSS ordered a cut of P1.48 per cubic meter.
The concessionaires separately brought the matter to the International Chamber of Commerce (ICC) for arbitration, as provided for in the concession agreement.
Last month, Maynilad said the appeals panel decided in the company’s favor, awarding an average increase of P3.06 per cubic meter—on top of the current basic rate of P31.28—for the five-year rate rebasing period up to 2017.
“We believe that waiting for the Manila Water arbitration panel’s decision is the most prudent and responsible way to do under the circumstances to ensure consistency in the conduct of our regulatory mandate under the concession agreement,” Yu said.
The ICC is not expected to make public the arbiters’ decision as it upholds confidentiality of the arbitration process. For its part, Manila Water has not disclosed any such development.
“It is our expectation and hope, barring any further unforeseen or unwanted events, that the appeals panel will render its [decision on Manila Water] in the coming weeks,” Yu said.–Ronnel W. Domingo
