MCWD rate hike: 3-month delay sought
CEBU CITY, Philippines — City legislators here are seeking a three-month deferment of the Metropolitan Cebu Water District’s (MCWD) latest rate hike, citing mounting economic pressures on households even as the utility defends the increase as necessary to sustain operations and improve services.
The call, formalized through a resolution approved on April 7 and sponsored by Councilor Winston Pepito, comes as MCWD began implementing a 10-percent adjustment in water rates effective April 1, its second increase in less than a year.
While the additional cost translates to an average of about P23 per month per household, councilors warned that the timing of the increase, amid inflation and rising commodity prices, could further strain consumers, particularly low-income families.
READ: ‘We need to help MCWD’: Archival backs ₱23 water rate hike
The resolution urges MCWD to temporarily suspend the rate adjustment for three months to allow households to adjust financially and give stakeholders time to review its impact.
It also reflects a tension between consumer protection and the financial realities faced by water utilities, which rely on rate adjustments to cover rising operational costs and fund infrastructure improvements.
READ: Cebu water bills up ₱23 starting April
Council push for deferment
In the resolution, the City Council has emphasized that water is an “essential basic service” and that any increase in rates directly affects the daily survival and well-being of residents.
Councilors noted that the April 2026 adjustment follows a 12-percent increase implemented in October 2025, compounding the financial burden on consumers.
“The immediate implementation of said rate adjustment may further burden consumers, particularly low-income households and marginalized sectors,” the resolution read.
The council also pointed to prevailing economic conditions, including inflation and the rising cost of basic goods, as justification for seeking a delay.
READ: Water companies to increase rates for April to June
Under the measure, MCWD is encouraged to use the proposed three-month postponement to conduct consultations, assess the economic impact of the increase, and explore mitigating measures.
MCWD: Increase necessary
MCWD, however, has maintained that the rate hike is part of a previously approved tariff adjustment authorized by the Local Water Utilities Administration (LWUA), the regulator of water districts.
The increase represents the final tranche of an earlier-approved rate rebasing aimed at addressing rising operating expenses and funding system improvements.
General Manager John DX Lapid has said the adjustment is necessary to stabilize the utility’s finances, noting that MCWD has been selling water below cost while grappling with high sourcing expenses.
The utility sources water at prices reaching up to P65 to P73 per cubic meter but sells it at significantly lower rates, contributing to financial strain.
Mayor Nestor Archival earlier backed the increase, saying it would help prevent the water district from falling into bankruptcy and ensure continued service delivery.
Cost drivers and reforms
MCWD attributed the rate adjustment to several factors, including the high cost of purchasing bulk water from private suppliers and the need to invest in infrastructure.
To mitigate costs, the utility is shifting toward cheaper groundwater sources, which can be produced at around P15 per cubic meter, significantly lower than bulk water.
It is also working to reduce non-revenue water losses, currently estimated at 90,000 cubic meters daily, caused by leaks, illegal connections, and inaccurate metering.
Billing concerns and minimum charge
Separately, MCWD has clarified its billing policies following concerns raised by the City Council over minimum charges imposed even on households with zero water consumption.
In a letter to the council, Lapid explained that the minimum charge was not a payment for water used but a “readiness-to-serve” fee that covered fixed costs such as infrastructure maintenance, electricity for pumps, and personnel.
He said these fixed costs would account for about 70 to 80 percent of the utility’s expenses and would be incurred regardless of actual consumption.
As a government-owned and controlled corporation, MCWD operates on a self-liquidating basis and does not receive regular government subsidies, relying solely on revenues from consumers.
Removing the minimum charge, he warned, would violate LWUA regulations and could undermine the financial viability of the water system.
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