Concessionaires Maynilad Water Services Inc. and EManila Water Co. Inc. will defer their water rate increases set for next year as a relief tocustomers due to the new coronavirus disease 2019 pandemic.
“Maynilad is foregoing the rate increases it is qualified to implement in the coming year, specifically the already-approved rebasing adjustment for 2021, as well as the mandated CPI (consumer price index) inflation increase for the year. With this deferral, Maynilad hopes to alleviate the day-to-day struggles of its customers as they and the whole country strive to recover from adversity and rise stronger than before, ready to start anew,” the company said in a statement.
Meanwhile, Jeric Sevilla, Manila Water corporate communications head, said the company will not implement the rate adjustment next year based on the approved 2018 rate rebasing.
The concession agreements between the Metropolitan Waterworks and Sewerage System and the concessionaires allow rate rebasing every five years.
Rate rebasingallows the concessionaires to adjust their water rates depending on the performance, expenses, earnings, unrecovered investments and service improvement plans of the water concessionaires.