MWSS sets bill rebates for MWC customers in June » Manila Bulletin Business

Manila Bulletin Philippines

Breaking News from the Nation's leading newspaper

Tempo

Online Newspaper

Showbiz and Celebrity News

Sports News

World News
News Asia

MWSS sets bill rebates for MWC customers in June

Maynilad warned on obligation lapse

Published

By Madelaine B. Miraflor

Metropolitan Waterworks and Sewerage System (MWSS) will execute next month the bill rebates for the customers of Manila Water Company, Inc. (MWC) as part of the penalties it imposed against the Ayala-led company for failing to meet its service obligation of providing 24/7 water supply to the East Zone concession.

Metropolitan Waterways and Sewerage System (MWSS) logo

MWSS Logo

As this happens, West Zone concessionaire Maynilad Water Services Inc. may also suffer the same fate as 290,000 households within its coverage experienced water service interruption.

Meanwhile, MWSS Regulatory Office (RO) has also issued a ‘Notice of Service Obligation Failure’ to Maynilad Water for also failing to meet its service obligation, as indicated under the Concession Agreement.

MWSS Chief Regulator Patrick Ty said that on April 30, MWSS RO issued a letter to Maynilad to call their attention on the large number of complaints it saw regarding water service interruptions and low water pressure in large portions of the West Concession zone, specifically in the consumers living in the south.

“More than 15 days has lapsed since our office alerted the Maynilad of the complaints. Water service interruptions and low water pressure still continued to affect Maynilad’s Concession Area even after we called their attention,” Ty said.

Ty said yesterday that MWSS will be implementing bill rebates — as credit payment or as overpayment — for MWC customers beginning June, reflective of their May consumption.

All MWC connections as of March 31, 2019 will see a minimum rebate equivalent to their first 10 cubic meters consumption, while the identified severely affected accounts or those who have no water supply for seven days straight will get additional rebate of P2,197.94.

If you are a household customer consuming 10 cubic meters a month, you will see a reduction of P153.93 in your June bill. But if you are severely affected, it would be a total reduction of P2,351.87, which will be deducted in your succeeding monthly bills until fully consumed.

Based on MWC’s list, as much as 140,000 accounts were severely affected by its water supply interruption.

The said rebate forms part of the penalties slapped on MWC by MWSS for failing to meet its service obligation and provide its customers water supply 24/7. The fine amounts to P1.13 billion, of which P534.05 million will be used to fund the aforementioned rebate scheme.

Such penalties are on top of MWC’s self-imposed penalty that would cost the company as much as P500 million. This amount was used by the company to implement its voluntary and one-time bill waiver program for its consumers which began implementation on April 1.

“Not a single cent will be kept by MWSS,” Ty said. “The remaining P600 million should be allotted by MWC to develop new water sources and that is non-recoverable.”

Ty, however, said the penalties for MWC could double if they will not be able to bring back its 24/7 water supply obligation to all its customers by the end of August.

Meanwhile, MWSS Regulatory Office (RO) has also issued a ‘Notice of Service Obligation Failure’ to Maynilad Water for also failing to meet its service obligation, as indicated under the Concession Agreement.

Ty said that on April 30, MWSS RO issued a letter to Maynilad to call their attention on the large number of complaints it saw regarding water service interruptions and low water pressure in large portions of the West Concession zone, specifically in the consumers living in the south.

“More than 15 days has lapsed since our office alerted the Maynilad of the complaints. Water service interruptions and low water pressure still continued to affect Maynilad’s Concession Area even after we called their attention,” Ty said.

“It is for this reason that we have given Maynilad five days upon receipt of the said notice to issue an explanation as to why they should not be penalized under Article 10.4 of the concession agreement. If found liable, we will recommend to the MWSS Board of Trustees that fines and penalties should be imposed to Maynilad,” he added.

Maynilad was given until Friday why it shouldn’t be penalized by MWSS RO.

Maynilad, however, disputed such decision. In a text message, Jennifer Rufo, Maynilad’s head for stakeholders communications office, said the company believes there is no basis for the imposition of the penalty, as the service interruption did not last for 15 days and only affected 12 percent of Maynilad’s customer base.

Related Posts