MANILA, Philippines — Manila Water Co. Inc. clarified on Friday its earlier warning of a 780 percent hike in water rates if a decision of the Supreme Court (SC) is enforced.
In a statement posted on Facebook, the Ayala group subsidiary said the increase –estimated at P26.70 per cubic meter– was the cost to build wastewater facilities to comply with the High Court’s ruling. The expense will not be passed on to consumers, it added.
“We are complying with the Supreme Court Mandamus to complete our wastewater programs by 2037,” Manila Water claimed.
“We never stated that it will be an impending increase nor did we make any statement about passing on to consumers,” added the concessionaire that services the east zone of Metro Manila and parts of Cavite province.
An Aug. 6 SC ruling affirmed a decision of the Court of Appeals that found Manila Water, Maynilad Water Services Inc., and Metropolitan Waterworks and Sewerage System guilty of violating Section 8 of the Clean Water Act. The Court asked them to pay nearly P1 billion each.
READ: What Went Before: Firms fined for violating Clean Water Act
The specific provision requires them to connect the existing sewage lines to the available sewerage system within five years after the law took effect on May 6, 2004.
Manila Water filed last week a motion for reconsideration before the SC, saying it had complied with its sewerage responsibilities under the Clean Water Act and that it should not be fined. /jpv
READ: Manila Water warns of rise in rates, worse traffic