I was shocked to see that our March 2009 Manila Water Bill increased by roughly 12% when our consumption had relatively stayed the same. (Feb 2009 consumption was 216 cubic meters while March 2009 was 219 cubic meters). So I promptly called Manila Water’s hot line to ask what was going on and they said that the Tariff Rates for 2009 was approved. (Later on, I found this Business Mirror article on the approval).
I queried the customer service representative about which government agency approved the tariff rate increase. Meralco needs approval from the Energy Regulatory Commission (ERC) before they can increase their bill’s prices before She said she’d need to check on that and put me on hold for about five minutes. When she finally got back, she informed me that the National Economic and Development Authority (NEDA) was one of the agencies involved.
It is funny how I happened to read the following paragraphs from the link above which points me to two articles, one written by Mia Gonzalez (‘No water-rate hike without Palace OK’) and the other written by Honey Madrilejos-Reyes (Manila Water hikes rates). The first article states…
THE announcement by Manila Water of an increase in the February billings has caused some confusion after Malacañang officials separately told reporters the Metropolitan Waterworks and Sewerage System (MWSS) cannot approve any water-rate hike with-out obtaining proper “guidance” from President Arroyo, who had earlier instructed them not to allow any rate increase this year.
The second article writes…
In an advisory issued on Thursday, the listed water company said its CPI, or the adjustments based on inflation, will go up by 12.2 percent, while its FCDA, which allows the company to recover foreign-exchange losses, will be adjusted by 1.03 percent.
Both increases were approved and confirmed by the Metropolitan Waterworks and Sewerage System Regulatory Office (MWSSRO) in separate resolutions dated February 3, 2009.
Which brings me now to the question “Who really approved the tariff rates increase?” Was it NEDA or is MWSSRO? MWSS was split into Maynilad and Manila Water which might mean that MWSS is in a sense, self-regulating. They dictate whatever prices they want and consumers can either take it or not consume water at all.
I tried calling up NEDA to ask if they were responsible for such an approval and was given the run around. (Called up the following numbers – 9268731, 9288419, 4335899, 6313757, 6389108, 6312192). Those who answered were saying that the approval was either not their responsibility or had no idea whose approval was necessary. They either specialized on tariff rates on import/export or other matters.
So if you’re wondering why your Manila Water Bill suddenly increased by a tremendous amount, the short answer is Manila Water increased prices. Makes you wonder though who is really responsible for the approval, and what necessitates the increase.