With a new tiered discount scheme for its customers, the Metropolitan Cebu Water District (MCWD) said it hopes to attract more commercial establishments to subsidize households.
“Though the five percent discount for on-time payments is removed, the subsidy is still there,” Engr. Ernie Delco, MCWD Asst. General Manager for Operations, said at the 888 News Forum yesterday.
Under the new scheme, discounts will only be given to consumers who consume more than 50 cubic meters a month and pay their bills on time.
The previous scheme gives a five percent discount to all on-time payments regardless of monthly consumption. The new scheme took effect Jan. 1 this year.
The discount doesn’t cover the power cost adjustment (PCA), purchased water adjustment (PWA) and franchised tax.
Myra Ravelo, MCWD asst. general manager for finance, said they have to use many strategies to sustain operations and retain their commercial consumer base in the face of competitors in Cebu.
Rowan Teñedo, MCWD asst. general manager for administration, said MCWD serves 42 percent of Metro Cebu’s total water demand.
She said 70 percent of the total water sales comes from domestic use which is largely subsidized by 30 percent of total water sales commercial usage, which explains the high cost of water consumed by commercial establishments.
With competitors offering lower rates to business establishments, Teñedo said MCWD has to offer incentives to commercial consumers in the form of a discount.
“We are only doing this to stop the exodus of our subsidizers, to attract more commercial consumers and perhaps, we can avoid a further increase and even reduce the cost in the future,” Delco said.
MCWD targets to achieve a 60-80 water consumption quota in 2020, which means 60 percent of total water sales will come from domestic use while 80 percent will consist of commercial usee.
With its ventures, like a new water source found in barangay Bonbon, Cebu City and existing partnerships, Delco said MCWD aims to supply more water especially in mountain barangays in Cebu within the year.