BY GEROME DALIPE IV
ILOILO City – The City Council has decided to summon the Metro Pacific Iloilo Water (MPIW) relative to its planned water rate increase per cubic meter within its franchised areas.
In its progress report, the Council, acting as Committee of the Whole, gave MPIW 10 days to submit the relevant data relating to its proposed water rate increase in the metropolis and nearby municipalities.
The City Council, convened as Committee of the Whole, is currently hearing “in aid of legislation” on MPIW’s proposed water rate increase.
During the committee hearing last month, Angelo David Berba, MPIW chief operating officer, told the City Council that the rate increase from P20 to P29 per cubic meter would augment their investment in further improving the water situation in their service areas.
The probe stemmed from the letter of former councilor and lawyer R Leone Gerochi to Public Utilities Committee chairperson Councilor Romel Duron.
He requested several documents from MPIW as references to their hearing before the committee hearing on June 10.
These documents are copies of the joint venture between MPIW and Metro Iloilo Water District creating the Metro Iloilo Bulk Water Corp., the joint venture between MPIW and MIWD creating the Metro Pacific Iloilo Water and the water supply agreement between MIWD and MPIW.
Berba explained that MPIW has been fulfilling its plans despite rising operational expenses due to the continuous increase in the inflation rate.
He said the MPIW had not raised the tariff rate in six years despite rising costs of bulk water supply rates, fuel prices, and increases in wages and manpower costs.
Berba noted the increases in five key expenditures since 2019, including bulk water price from P20.71 per cubic meter, up 33% from P13.81, and fuel price from P64.25 per liter up 34% from P47.92.
The material cost of 150-millimeter pipes also increased from P5,248, or up by 74 percent, from P3,022; the chemical for water quality from P5,000, rose by 25 percent from P4,000, and labor costs which are now P480, or an increase by 22 percent from P395.
Despite these costs, MPIW’s rates remain among the lowest in Metro Iloilo at P200 for the first 10 cubic meters (P20 per cubic meter). It cited the rates of other water utilities, such as South Balibago (P356.50), Lambunao Water District (P352), Banate Water District (P303), Dumangas-Barotac Water District (P283), Metro Roxas Water District (P252), Metropolitan Cebu Water District (P243), and Davao City Water District (P214).
Berba noted that the P9.19 per cubic meter per month increase they are petitioning with the Local Water Utilities Administration (LWUA) is their first since taking over in 2019.
The increase, initially planned for 2021, was delayed in consideration for its customers due to the COVID-19 pandemic.
Due to the pandemic, their asset verification process was delayed, and only 36 percent (P612 million) of the P1.699 billion capital expenditure (capex) budget was utilized.
But Gerochi questioned MPIW whether or not the planned increase would be used to fund its proposed desalination plant.
“Now they are increasing the rates without any corresponding and notable increase in water service and water quality,” Gerochi told the committee.
Deputy Majority Floor Leader Councilor Rex Marcus Sarabia slammed the MPIW, saying the water distributor should not be granted its proposal to increase its rate should they fail to provide the council with the needed documents.
Sarabia also opposed MPIW’s proposed P9.19 per cubic meter per month increase. He argued that the rate hike is untimely and burdensome to the consumers given the kind of service the water distributor is providing to its consumers.
“One of the main concerns is whether or not they are earning. They alleged they incurred losses, but we needed substantial data and that’s the reason we requested the document to support their allegations,” said Sarabia.
The councilor said he received information that MPIW received a copy of the communication from the City Council only yesterday.
“But the council requested those documents from them during the hearing on June 10 and they could not provide it after almost a month. We speak on behalf of the people and we hope they (MPIW) would treat our request with sanctity,” said Sarabia.
Sarabia said the MPIW has not yet provided the Council with its financial obligation and report to determine whether or not they are earning revenues from the ventures. In the report, the committee noted they had not received the documents from the water distributor firm./PN
