MCWD to implement revised water rates starting Dec 1

Lawyer Jose Daluz III, chairman of Metropolitan Cebu Water District (MCWD), speaks in a press conference on Saturday, November 18, about their plan to already implement the revised water rates for commercial and industrial consumers. | CDN Digital photo / Pia Piquero

CEBU CITY, Philippines – The Metropolitan Cebu Water District (MCWD) will implement a revised water rate structure for commercial and industrial consumers starting Dec. 1.

Lawyer Jose Daluz III, the MCWD chairperson, said its implementation is ‘aligned’ with the standard manual rates prescribed by the Local Water Utilities Administration (LWUA).  This will also allow MCWD to raise additional revenues to support its operations.

However, the new rate structure will not affect residential users, Daluz assured.

“For a long time, the MCWD has questioned mga businesses who are reselling water, like for example the refilling stations, manufacturing and processing plants, and bulk water supply. There are companies who buy water from us and resell it at a higher price,” Daluz said.

In a press conference on Saturday, Nov. 18, Daluz said that the adoption of LWUA’s standard manual charges was imperative “due to instances of businesses engaging in the resale of water at unjustifiably high rates.”

Based on their current tariff, the same per cubic meter charge is being implemented on residential, commercial and industrial consumers.

The rates are as follows: P15.20 per cubic for those consuming 10 cubic meters or less per month, P16.80 for the consumption of 11 to 20 cubic meters and P19.80 per cubic for those using 21 to 30 cubic meters.  Those who consume 30 cubic meters or more are charged P48.40 per cubic meter.

Price adjustments

With the implementation of the new rate structure, Daluz said commercial consumers will now have to pay double their old rates.  Industrial consumers, on the other hand, will be charged triple.

Daluz said that the price adjustments have long been mandated by LUWA.  However, members of the previous MCWD board, dating two decades back, sought to be exempted from the said policy to equalize the rates charged to all of their consumers.

“I didn’t see logic ani why nag ask for exemptions. There are a lot of rumors about [this] at that time, because they want [the] privatization of MCWD and they want to drain the MCWD that’s why wala ta mo income sa commercial and industrial,” he said.

Members of the previous MCWD board also refused to increase rates for residential consumers saying that water was a “basic necessity.”

“Dili nata mo increase sa residential and I know ‘water is life’ and that is only applicable sa residential area kay basic necessity man. But for commercial and industrial it’s not a basic necessity but operating expense part of their operating expenses,” the current chairman of MCWD said.

Residential consumers are households and individuals, who use water for their personal needs such as drinking and sanitation, with relatively lower consumption.

Commercial consumers, on the other hand, are comprised of businesses and establishments that exhibit varied water usage depending on the nature of the enterprise, often incurring higher rates than residential users.

Meanwhile, industrial consumers are those who are involved in manufacturing processes and have substantially higher water demands due to large-scale operations, facing the highest rates and stringent regulations to mitigate potential environmental impact.

Residential consumers

Last July, MCWD already sent a request to LWUA that they be allowed to increase water rates for residential consumers.  However, said request is still pending approval.

It is for this reason that the rate adjustments will only be implemented on commercial and industrial consumers, for now, Daluz said.

“Naay pending nga increase of water rates sa LWUA. [But] upon discussion with the board, we have decided [that] there will be no increase in the water rates for the residential consumers. Because the MCWD has found additional income that can raise [its] income,” Daluz said.

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