MCWD adjusts rates: Why water bill may be lower, higher this March

MCWD water meters. | File photo

CEBU CITY, Philippines — Residential consumers in Metro Cebu will experience lower water bills beginning March as the Metropolitan Cebu Water District (MCWD) implements a revised billing structure designed to mitigate the impact of rising costs.

The adjustment follows the provisional approval granted by the Local Water Utilities Administration (LWUA), integrating the Purchased Water Adjustment (PWA) and Power Cost Adjustment (PCA) into the base rate to eliminate these separate surcharges.

This restructuring results in cost reductions for residential users, particularly those with lower consumption levels.

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MCWD spokesperson Minerva Gerodias explained that while LWUA approved a provisional 38 percent rate hike, lower than the 60 percent initially proposed in 2022, the removal of separate charges ultimately resulted in lower bills for residential consumers.

New Tariff breakdown: How much will you pay?

With the adjustment, residential consumers with a ½-inch meter connection will now pay a minimum charge of P209.76 for the first 10 cubic meters, up from P152. For other meter sizes, the new minimum rates are as follows: ¾-inch: P335.62; 1-inch: P671.23; 1 ½-inch: P1,678.08; 2-inch: P4,195.20; 3-inch: P7,551.36; 4-inch: P15,102.72; 6-inch: P25,171.20; 8-inch: P40,273.92; and 10-inch: P57,893.76.

For commodity charges, the succeeding rates are now: 11-20 cubic meters: P23.18 per cubic meter; 21-30 cubic meters: P27.28 per cubic meter; and over 30 cubic meters: P66.79 per cubic meter.

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To help consumers understand the new rates, here’s an example calculation for a residential consumer using 25 cubic meters (m³) per month with a ½-inch meter size:

Step 1: Apply the Minimum Charge

First 10m³: P209.76 (flat minimum charge)

Step 2: Apply the Commodity Charges

Next 10m³ (11-20m³): 10m³ × P23.18 = P231.80

Next 5m³ (21-30m³): 5m³ × P27.28 = P136.40

Total Water Bill Calculation:

P209.76 (minimum charge)

P231.80 (11-20m³ consumption)

P136.40 (21-25m³ consumption)= P577.96 total bill

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Impact on commercial users

For those consuming over 30m³, additional usage will be charged at P66.79 per cubic meter, significantly increasing the bill.

Gerodias explained that 60 percent of MCWD’s consumers are residential, while the remaining 40 percent are commercial users whose consumption is significantly higher.

Delayed rate adjustment due to pandemic

MCWD had not implemented a tariff adjustment in nearly a decade, with the last increase taking effect in January 2015.

Under regulatory guidelines, water districts can review and adjust rates every five years. The next increase was originally scheduled for 2020, but it was postponed due to the COVID-19 pandemic to ensure an adequate water supply before enforcement. MCWD formally applied for the increase in 2022.

While the revised billing scheme reduces costs for residential consumers, commercial and industrial customers, who contribute a substantial portion of MCWD’s revenue, will see higher charges, as their rates remain tied to consumption levels.

Need for adjustment

Gerodias emphasized that the adjustment is necessary to sustain MCWD’s operations, particularly given the surge in bulk water procurement costs, which have increased from P15.20 per cubic meter to between P55 and P76 per cubic meter.

“PCA, mao na siyay bill sa MCWD gikan sa atong power provider kay ang pag-generate nato ug tubig, nagkinahanglan man ta ug kuryente kay pump man na siya,” she said.

(PCA is the bill from MCWD issued by our power provider because generating water requires electricity since it operates through a pump)

“Ang PWA is cost recovery mechanism nga gi-impose namo sa among mga consumers tungod sa among mga gipamalit sa mga bulk water suppliers,” she added.

(PWA is a cost recovery mechanism that we impose on our consumers due to the expenses incurred from purchasing water from bulk water suppliers)

MCWD heavily relies on bulk water suppliers as it lacks the resources to develop its water sources. With this adjustment, the elimination of Power Cost Adjustment (PCA) and Purchased Water Adjustment (PWA) will ease the financial burden on residential consumers.

Public consultations and future plans

Ahead of the implementation, MCWD conducted a series of public hearings to inform consumers about the adjustment and provide updates on new water sources and expansion projects. Similar consultations were held in November 2022, when the increase was initially set to take effect in July 2023, but it was later postponed.

Meanwhile, starting March 2025, consumers in Lapu-Lapu City will be subject to an Environmental Fee to support the operation of the city’s Septage Treatment Plant. /clorenciana