MWSS ‘powerless’ to punish Manila Water – regulator

House Speaker Gloria Macapagal Arroyo. INQUIRER FILE PHOTO / GRIG C. MONTEGRANDE

MANILA, Philippines — The Manila Water Company, Inc. has violated its mandate to provide uninterrupted water services to consumers but the Metropolitan Waterworks and Sewerage System (MWSS) Regulatory Office says it has no power to penalize the water concessionaire.

“Based on the terms of the concessionaire’s agreement, Manila Water has violated their mandate to provide 24/7 water,” MWSS Chief Regulator Patrick Lester Ty told the House committee on Metro Manila development on Monday.

However, MWSS’ hands are apparently tied as they have no power to hold the Manila Water accountable. Ty then said this was the reason why they had been pushing for the creation of a Department of Water.

“There’s no penal provision in the concessionaire agreement authorizing the MWSS regulatory office to impose any fines and penalties. That is why the MWSS has been repeatedly requesting Congress to petition for a Department of Water and a water regulatory commission to allow the imposing of these fines and penalties,” Ty explained.

“If we try to do that we can be sued in court… We cannot impose administrative fines. We can disallow the expenses that the concessionaire incurred during this time… We are looking into that,” he added.

When asked by Negros Occidental 3rd District Rep.Alfredo Benitez if he thought that this was a “defect” on the concessionaire agreement, Ty agreed.

But ACT Teachers Rep. Antonio Tinio pointed out that the MWSS regulatory office has the power to impose penalties against Manila Water.

“Namamangha ako sa mga pahayag ng regulator ng MWSS… Napakalinaw po ng sinasabi sa [contract]… I am astounded at the incompetence being displayed by this regulator,” Tinio said.

Section 10.4 of the concessionaire contract, as read by Ty, states that: “Failure by the concessionaire to meet any service obligation which continues for more than 60 days or 15 days in cases where the failure could adversely public health or welfare after written notice thereof shall constitute a basis for the regulatory office to assess financial penalties against the concessionaires.”

But Ty has a different interpretation and argued that this could apply on the next rate rebasing– which happens once every five years– in 2022.

“Sa next rebasing kasi magte-take effect ‘to … [But] this incident will affect the tariff adjustment of the concessionaire… Bababa po ang tariff… Babawasan ang singil nila,” Ty said.

Manila Water President Ferdinand Dela Cruz meanwhile said they were willing to pay any fines which would be required by MWSS. He also assured any cost they used to cure their water deficit won’t be charged to consumers.

READ: Manila Water CEO says ‘sorry’ for water woes

Deficiency in the law 

In a separate interview, House Speaker Gloria Macapagal Arroyo said there might be a need for a new law giving the MWSS power to penalize erring water concessionaires.

“What (Quezon City Rep.) Winnie Castelo was whispering to me is perhaps in the law, we have to add a penalty provision for those who failed to comply with some parts of the concession agreement,” the Pampanga congresswoman said.

“He says that that seems to be what’s missing in the law. So, that is not an issue with the presentation, that’s an issue of the deficiency in the law,” she added.

Even Manila Water President Ferdinand Dela Cruz admitted that they could face penalties after they failed to provide 24/7 water service to consumers and after their water pressure dramatically decreased to 6 psi from the 20 psi systemwide average.

“In the concession agreement there are clear provisions on the performance of a concessionaire,” Dela Cruz said.

The official also said they were willing to pay any fines which would be required by MWSS. He added that any cost they used to cure their water deficit won’t be charged to consumers. /cbb