ON HIGH WATER RATES
The Chamber of Real Estate and Builders’
Associations, Inc. or CREBA is rallying behind a consumer advocacy group called
the Water for All Refund Movement or WARM to compel government to take swift
action in addressing the lingering problem of high water rates that has
continued to hound millions of water consumers in the country. Specifically
CREBA and WARM are calling upon government regulators to act on the unabated
rise in water cost.
CREBA, the largest real estate and housing
development group in the country, also batted for strong support to various
advocacy groups and individuals, who, in their bid to put an end to
unconscionable hikes in water prices, have raised issues in the regulatory
governance of the water sector. This is because real estate industry
stakeholders strongly believe that the problem on water services could threaten
the growth of the housing industry particularly in areas that suffer from
ineffective water service delivery.
The Maynilad Water Services Inc. (MWSI) and Manila
Water Corporation (MWC), principal water distributors in Metro Manila and
neighboring localities in Bulacan, Laguna, Rizal and Cavite, have recently
petitioned the Metropolitan Waterworks and Sewerage System (MWSS) for water
rates increases of P10.30 and P5.83 per cubic meters, respectively.
Reports assert that since July 30, 2004 after the
Commission on Audit submitted the audit of asset used in operation, Manila Water
was discovered to have had an actual rate of return of 40.92 percent over and
above the 12 percent cap imposed by the Public Service Law. This exposed the
fact that there has been no annual audit of assets used in operation and no
asset registry in MWSS.
We deem it high time for the MWSS regulators to look
for possible irregularities committed in past rate rebasing proceedings as a
basis for reforming this system of determining water rates, which was part of
the exposes made by Bagong Henerasyon Party-list representative Bernadette
Herrera-Dy who called for a congressional inquiry on the issue.
The housing sector likewise calls for the
implementation of international standards for sewerage and sanitation to
justify the high cost of service imposed by MWSI and MWC.
Customers are being billed based on international
criteria being applied in Japan, Singapore and Taiwan but sewerage and
sanitation services extended by the two water concessionaires are way below the
standards set in the said countries.
Metro Manila cities will not achieve international
competitiveness in terms of living standards, health and balanced environment
as long as effective sewerage and sanitation systems are absent. We urge MWSS
to be open to the public in their regulatory governance.
Our organization also volunteers to be “a public
participant” in the current rate rebasing exercise of the MWSS as we advocate
for transparency in water service delivery. #
Energy within our Reach
Earlier this year, our
country’s legislators have acknowledged that the Philippines now holds the
infamous record of having the highest residential energy rates not only among
its closest Asian neighbours but possibly the entire world.
The skyrocketing cost of
electricity that goes beyond the affordability levels of the average Filipino
family is one that we can try to consider as another “great social equalizer”,
since the rate of electricity affects not only the cost of living of
individuals but also the cost of doing business which powers the economy in
general.
Data from the Department
of Energy reveal that the Philippines has overtaken JAPAN – now the 4th
largest economy in the world - in terms of electricity rate for residential
use. Congressman Ben Evardone, who initiated an inquiry on the issue through
House Resolution No. 106, said that the residential power rate here is 18 US
cents per kilowatt-hour, while it is only 17 cents in Japan, 15 in Singapore, 8
in Thailand, 7 in Malaysia, 5 in Indonesia and about a mere 3 cents in Vietnam.
Our own research reveals the same, and this we find very alarming.
This makes the cost of
electricity in every Filipino household six times more than what families in Vietnam
In terms of commercial
rates however, it is 14 cents in Singapore, the Philippines comes in second at
12 cents, 12 in Japan, 8 in Thailand, 7 in Malaysia, 6 in Vietnam and 5 cents
in Indonesia.
There is no surprise why
the general business climate in the Philippines Japan Singapore Malaysia Thailand
This is not to mention
the corruption, red tape, peace and order and political issues that continue to
plague the bureaucracy to the consternation of the local and international
business community.
This protracted state of
affairs denies the country a huge potential and opportunity to benefit from
increased economic activities that will redound to business, employment and
fiscal revenues for government. It likewise denies the ordinary businessman
with minimum capital the chance for a level playing field that will encourage
healthy competition.
To implement a “socialized pricing
mechanism for the marginalized end-users,” the ERC has implemented a lifeline rate discount for those who cannot afford to
pay at full cost. MERALCO customers with an average monthly consumption of
0-50 kilowatt-hour pay 50% less, those with 51-70 kilowatt-hour average monthly consumptions pay 35%
less and those who consume 71-100 kilowatt-hour get 20% discount.
However,
these discounts are recovered by charging higher rates for big users, who in
turn, input the added costs to be borne by the consumers of their products and
services creating a vicious cycle of discounting and back-charging, putting
citizens’ spending power in peril.
It
behooves the government to review its recent policies that have failed the very
intention of the legislative measure enacted more than 10 years ago – which had
been reduced from being EPIRA to a mere question of “pera” - and find out means
to regulate and stabilize the cost of electricity.
We can begin by learning
from our ASEAN neighbours. We must finally be able to redeem ourselves from the
debts NAPOCOR has incurred to the tune of several billion dollars. How it ever
reached such staggering proportions only government can tell us. But I believe
most, if not all of us, taunted by the EPIRA-turned-“pera” solution know the
real answer. And maybe, our most able-minded representatives in Congress can
consider lifting the 12% VAT on power consumption and finally unleash the
Filipinos from the shackles of high-cost electricity.
E-mail us with your comments at creba_national@yahoo.com. #
WHY IS OUR WATER RATE IN METRO MANILA SO EXPENSIVE NOWADAYS?
MWSS PRIVATIZATION
- Earlier Objectives
- Implementation Dsyfunction
- Action Undertaken And To Be Undertaken By Consumers And Other Stakeholders
- BH Status Observation
1) The principal objective of the MWSS Privatization is to HARNESS Private Capital in the delivery of water, sewerage and sanitation services , and subject to a certain constitutional limitation, likewise to harness some Foreign Investments. The enabling laws: R. A. 8041, EO 311 and EO 286 as well as the Concession Agreement/s have allowed the entry of Mayniladand Manila Water as MWSS Concessionaires subject to Water Rate Setting Mechanism by MWSS Regulatory Office. To compensate the Concessionaire/s and to make reference to the terms and conditions therewith, Concession Agreements/s were signed by MWSS that established for both Periodic Rate Rebasing System that aims to protect the interests of the Water Consumers and at the same time to effectively compute and allow Maynilad and Manila Water to recover their Capital Expenditures in their rehabilitation, infrastructure developments ,putting in place complete water distribution system as well· as an international standard sewerage and sanitation process and the like, and to include in it its related maintenance and operating expenses thereto that have been proven to be PRUDENTLY INCURRED AND HAVE BEEN SUBJECTED TO EFFICIENCY TESTS by the Regulatory Office . On these mandates , MWSS authorized the two (2) Concessionaires to put up water meters and to collect from water meter readings RATES ON WATER AND SEWERAGE SERVICES FEES AND OTHER ADD ONS based on a12% RETURN ON RATE BASE (RORB) Determinations as what have been allowed as basis for Water Charging to their customers.
2) It must be emphasized that the NEITHER the Concession Agreement/s NOR those enabling laws created under the Water Crisis Act allowed any of the followingDYSFUNCTIONS that lead into WHY IS OUR WATER RATE SO EXPENSIVE NOWADAYS ???, hitting to a high of 1,750% after the two(2) Water Rate Rebasing Approvals by MWSS in 2003 and in 2008 from a low of Pesos 4.02 per cubic meter in 2002 and now in 2012 to a high of Pesos 48.70 per cubic meter: A) The Concession Agreement/s OR those enabling laws did not allow the CONSUMERS CAPITAL to be harnessed to what MUST supposed to BE the CAPITAL EXPENDITURES of the CONCESSIONAIRES MAYNILAD AND MANILA WATER AS WELL AS THEIR FOREIGN PARTNERS ; B) The Concession Agreement/s and those enabling laws likewise did not allow the MWSS REGULATORS AND ITS BOARD OF TRUSTEES to do INNOVATIONS in WATER RATE SETTING and the subsequent APPROVALS of those WATER RATE SETTING INNOVATIONS respectively , that led to the Concessionaires MAYNILAD AND MANILA WATER being allowed to CHARGE AND COLLECT IN ADVANCE FROM MONTHLY WATER BILLINGS of Water Consumers for Water Infrastructure Projects that are NOT YET BEING DONE, NOT YET BEING ENJOYED BY THE CONSUMERS , NOT HAVING BEEN PRUDENTLY INCURRED,· NOT YET BEING SUBJECTED TO EFFICIENCY TESTING, ASSESSMENTS FOR FUTURE COSTS THAT ARE NOT YET DUE, AND MANY OTHER WATER FEES ADDED ON AND FRONTLOADED TO THE WATER BILLS THAT ARE NOT SUPPOSED TO BE THERE.
3) Actions Being Currently Undertaken by the Concerned Stakeholders:· a). Water For All Refund Movement (WARM) together with individual consumer/s , with the assistance of a socially oriented law office· have filed demand letters to MWSS , Maynilad and Manila Water for the Refund to water consumers· in the amount of· Pesos 6 Billion for the two( 2) immediately identifiable unimplemented projects , laiban dam and 15 CMS Angat Reliability or Water Irrigation Replacement Water· that have been collected in advance· from consumers as added to the monthly water bills for the last 5 years starting 2008.· This is in preparation for filing with the proper court venues for Large Scale Syndicated Estafa vs the responsible officers , board of trustees and directors of MWSS , Maynilad· and Manila Water ;· · b). Water Alliance for Refund and Reform, Inc (WARR) together with Water for All Refund Movement, Inc (WARM)· have sent demand letters to MWSS , Maynilad and Manila Water, for Audit , Full Accounting and Refund· cc: Commission on Audit (COA). This is in preparation for the filing of a Civil Case in behalf of the Water Consumers.· · c ). Bagong Henerasyon Partylist (BH) headed by Congresswoman Bernadette Herrera-Dy , a member of the Congressional Oversight Committee on Water , who initiated the Congressional Investigation , Research , Report of Findings and Recommendation on the MWSS anomalies and Questionable Water Rate Rebasing· have filed officially with the Commission on Audit (COA) its· Referral Letter for Audit And Accounting of Water Rates and its entire Regulatory Rate Setting Mechanism,· and have likewise recently completed its draft official letter to the Office of the Ombudsman ready for filing for its Referral Letter for complete investigation of government officials in MWSS,· in the Regulatory Office, in the Administrative Office and its Board of Trustees,· as well as the officials of the National Water Resources Board for possible collusion that could have led to WHY IS OUR WATER RATE SO EXPENSIVE NOWADAYS ?
4) Bagong Henerasyon (BH)·through Congresswoman Bernadette Herrera-Dy observes that· "The DYSFUNCTIONS in the MWSS that have allowed the water consuming public to be bilked with Unconscionable and Expensive Water Rates could be a classic case of what is wrong in the society, governance, ruling power of the wealthy , fear of politics and the justice system to confront the economic power of the elite whereby the Philippine Government itself ,· its entire bureaucracy ,its legislative function,· its judiciary and the like· are being used at times by the influentials and the very powerfully rich against the interests of the people and sometimes against the State itself without the State knowing it".·
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