MWSS clarifies: Manila Water can be penalized, but…

Officials of the Metropolitan Waterworks and Sewerage System and the two water concessionaires face the senators during a Senate investigation into the water service interruptions that badly hit parts of Metro Manila and Rizal. INQUIRER.net photo / Daphne Galvez

MANILA, Philippines — The Metropolitan Waterworks and Sewerage System (MWSS) on Tuesday clarified that it can indeed impose penalties on Manila Water Co. for its water service interruptions since March 8.

However, MWSS Chief Regulator Patrick Lester Ty said during the Senate hearing that they would wait until June or July before they could come up with the decision to penalize the east zone concessionaire.

“Yes,” Ty said when asked by Senate President Vicente Sotto III if the MWSS could impose penalties against Manila Water.

But when asked if the MWSS would impose fines, Ty appeared apprehensive to give a direct answer.

“We don’t want to say right now, yes or no, because any statement I make right now can be used against the MWSS. Right now, we want to wait until June or July,” he said.

Ty cited three reasons why: “One, we want to focus first on fixing things; two, we expect next month, the bill will be very low because the usage of everyone is really low; and the third is to observe due process.”

He argued that if they impose penalties to Manila Water, the concessionaire could file an arbitration case against MWSS.

The MWSS chief regulator was grilled during the hearing for his earlier remark that there is no penal provision in the concessionaire agreement authorizing the MWSS regulatory office to impose any fines and penalties.

READ: MWSS ‘powerless’ to punish Manila Water – regulator

Ty clarified that the MWSS could impose penalties but only during the next rate rebasing period, which would be on 2022.

He, however, said that the MWSS is already studying the option to impose penalties against Manila Water even before the next rate rebasing period and the amount of fines it would impose to concessionaire.

“Normally, in a normal situation, we wait for the next rate rebasing, but we do not need to wait because of this unprecedented situation, this is the first time that this has happened,” Ty said.

“We can do that and we are studying it right now. We are actually also studying right now the amount of the penalty that would be imposed which can be rebated,” he added. /jpv