Maynilad adjusts water rates; gives discount to lessen impact of adjustment

December 16, 2011

Effective January 1, 2012, West Zone concessionaire Maynilad Water Services, Inc. (Maynilad) will implement the third installment of its previously approved basic tariff and consumer price index adjustments, equivalent to P2.49 or  8.18% of the P30.43 /cu.m. average Basic Charge in 2011. 
However, to lessen the impact of this adjustment on its customers, Maynilad has agreed to grant a one-time tariff reduction of P1/cu.m. of water consumed to all its customers. Only Maynilad customers will benefit from this reduction.
In effect, Maynilad lifeline residential customers or those who consume 10 cu.m or less of water a month, and are not connected to the company’s sewer line will pay only P107.18, instead of P117.18. Unsewered, residential customers who consume 30 cu.m. of water a month will pay only P802.42, instead of P832.42. Nearly 70% of Maynilad customers consume 30 cu.m. and below of water.
The one-time tariff reduction will be implemented in response to the appeal of the government, through the Metropolitan Waterworks and Sewerage System (MWSS), to mitigate the impact of the basic rate adjustment on consumers.
“Finding the means to implement this one-time discount will not be easy. We would have to meet our 2012 service level obligations using a reduced budget,” said Maynilad president and CEO Victorico P. Vargas. “But we have always operated under challenging conditions, and we are committed to making this public-private partnership work. We are confident that with the support of the government, our customers, and other stakeholders, we can achieve what we have set out to do.”
Maynilad, however, reiterated that this tariff reduction will only be a one-time thing, citing sustainability issues. “We cannot continue implementing service improvement projects if our financial resources are inadequate,” said Vargas. 
In addition to the tariff reduction of P1/cu.m. of water consumed, Maynilad is also extending discounts and other forms of assistance to its low-income and marginalized customers.
Since Maynilad’s reprivatization under new owners Metro Pacific Investments Corp. (MPIC) and DMCI Holdings, Inc. (DMCI) in 2007, the company has spent over P28 billion to improve and expand water and wastewater services within its concession area.
From only 78% in 2006, Maynilad’s service coverage has increased to 91% by September 2011. During the same period, Maynilad customers who enjoy 24-hour water supply have dramatically increased from 32% to 82%; while those who receive water at 7 psi (pounds per square inch) pressure have more than doubled from 45% to 95%. Meanwhile, water losses have seen a dramatic reduction from 68% in 2006 to 44% in less than five years.
Maynilad serves the cities of Manila (all but portions of San Andres & Sta. Ana), Quezon City (west of San Juan River, West Avenue, EDSA, Congressional, Mindanao Avenue, the northern part starting from the Districts of the Holy Spirit & Batasan Hills), Makati (west of South Super Highway), Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon all in Metro Manila; Cavite City, and the towns of Bacoor, Imus, Kawit, Noveleta and Rosario, all in Cavite Province.