Solon proposes abolition of MWSS regulatory office

MANILA, Philippines—A lawmaker on Thursday proposes the Metropolitan Waterworks and Sewerage System-Regulatory Office to be closed down to make way for an independent water regulatory agency.

Marikina City Representative Marcelino Teodoro, in a statement, urged his fellow lawmakers to replace MWSS-RO with Water Regulatory Commission (WRC) through House Bill 5790. He cited the MWSS-RO’s supposed “inefficiency” in rolling out its mandate due to the increase in basic water charges by two water concessionaires since 1997.

Teodoro attributed the rise in charges to the P100-million concession fees being received from the Manila Water Company and Maynilad Water Services, Inc. He said the MWSS operations were granted to the two concessionaires after being privatized but added that the agency has retained ownership of all fixed assets.

Teodoro added the regulating unit created under MWSS monitored annual rate adjustments since the agency “has the mandate to compute the rate re-basing adjustments every five years to permit the concessionaires to recover over the 25-year period stipulated in their agreements.” It will also establish and enforce a methodology in setting rates and fees and set a lifeline rate for the marginalized customers.

House Bill 5790 states that the Water Regulatory Commission will be an independent quasi-judicial regulatory body replacing MWSS-RO. It adds that President Benigno Aquino III shall appoint four members and a member of the Philippine Bar as chairman of the agency.

The chairperson and the members of the commission, including their relatives, upon their assumption of office will be directed to let go all interests in the water utilities sector.

Technical trainings will be conducted for the WRC staff to enhance their technical competence in evaluating technical performance, monitoring compliance with service and performance standards, performance-based rate-setting reforms, and environmental standards.

Should the bill be passed, a P100-million allocation will be sourced out from the existing budget of the MWSS-RO for the initial operation of the WRC. The bill states that any balance would first be received from the Office of the President of the Philippines. An annual budget would be included in the regular or special appropriations, it added.

The bill also gives the WRC the power to amend or revoke from any person or entity, the authorization to operate, should they fail to comply with the provisions of the bill.

Considering the said bill is the House Committee on Government Reorganization led by Zamboanga del Norte Representative Cesar Jalosjos.