The Cebu City Council has asked the Metropolitan Cebu Water District (MCWD) to consider the possibility of suspending the implementation of the 12 percent water rate increase that it plans to roll out next month.
If it cannot be avoided, Councilor Alvin Dizon said they are asking the MCWD to implement the increase on an installment basis, with the six percent next year and the remaining six percent in 2016 to ease the burden on consumers.
“You won’t be bankrupt if you suspend the increase for one year,” Councilor Sisinio Andales told MCWD general manager Engr. Ernie Delco in yesterday’s City Council hearing.
The public hearing was called by Councilor Nestor Archival Sr., who heads the committee on public utilities, for MCWD to explain to the public the reason behind the water rate increase.
The water rate hike was recently approved by the Local Water Utilities Administration (LWUA).
Market demand
In his presentation, Delco said the increase will fund their expansion to other areas which they have yet to service.
MCWD services eight local governments in Metro Cebu but covers 43 percent of total market demand.
“This means that the 57 percent remaining is being supplied by private suppliers who are using underground water. If we don’t bridge this gap, then groundwater extraction will continue and worsen the state of our aquifers,” Delco said.
He said MCWD imposed on itself a moratorium of groundwater extraction.
Delco said continued groundwater extraction can result to “irreversible” problems with out aquifers and will have “very disastrous” effects.
Delco said a study they did with the Japan International Cooperation Agency (JICA) showed that if groundwater extraction continues, saltwater intrusion can reach to as far as Talamban by 2030.
Under the new MCWD rates, consumers with 0 to 10-cubic meters a month will pay P15.20 per cubic meters instead of the current rate of P13.60 per cubic meters.
Consumers with 11 to 20 cubic meters will pay P16.80 per cubic meter instead of only P15.
Those consuming 21 to 30 cubic meters will pay P19.77 per cubic meters from the current P17.65.
Those consuming 31 cubic meters or more will pay the same amount of P48.40 per cubic meters.
Utility
Delco said each household consumes an average of 24 cubic meters a month. With the new rate, they will now pay P399.08 for their consumption.
Delco said the amount is still lower than other comparable areas like Manila (P403.85), Bogo (P530.60), Baguio (P959.80), Tarlac (472) and Iloilo (P411). But despite these explanations, some consumer groups remained unconvinced.
The Freedom from Debt Coalition said water is a right and should not be treated as a venue to extract profit.
“The increase is tantamount to depriving the right of the people to water. Water is the most important utility,” said the FDC in an official position paper read by a representative.
They said the MCWD should be reminded that they are a government facility and proposed that MCWD instead ask for government subsidy to fund expansion projects instead of passing the burden to the consumers.
Another group, the Panaghugpong sa mga Kabus nga Taga Dakbayan – Cebu also opposed the increase, saying the prices of every other commodity is also increasing as well.
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