In the midst of all other issues griping the nation, public utilities operators like Manila Water and Maynilad seem to take advantage of the mind-numbing frustrations caused by the site of long-lines of people trying to avail of cheap rice and of the unending oil price hike, and quietly twist and circumvent the laws to gain more profit and unconscionably pass on the burden of high water rates to hapless consumers.

Last April, water rates were supposedly lowered by 20 centavos per cubic meter due to the strengthening of the peso but in less than three months, not long enough for anyone to actually feel the benefit of a supposedly lower water rates, the rates are being hiked up again by 21 centavos per cubic meter, this time supposedly due to a weak peso.

"The consumers are being yo-yoed by these unconscionable public utilities companies and it is very frustrating," says CIBAC Congressman Joel Villanueva.

The increase in rates was attributed by Manila Water to the weakening of the peso. But if you really look into it, even if the rates are not increased, the actual operations of the water company would not be placed in jeopardy. Only its margin of profit would be affected – a margin of profit which has provided the company a 40.92% return of investment (ROI) which in turn is way above the 12% ROI limit prescribed by law (section 12, R.A.No. 6234-MWSS Charter).

"This is illegal profit-making and uncalled for especially during these times of crises," adds Congressman Villanueva.

Villanueva explains that instead of Manila Water trying its best to be the public service company that it is and finds a way to help out its consumers times of difficulties caused by inflation and economic instability, the company instead deceives the public by claiming that it is not a public utility but a mere concessionaire thus the 12% profit cap does not apply to it.

"It is time someone scrutinize Manila Water and Maynilad’s concession agreement, lest these companies think okay lang sa atin ang parang yo-yo na pagbaba, pagtaas, ng rates ng tubig at ang madalas na water service interruptions," remarks Villanueva.

Villanueva adds that if Manila Water has half the heart required to be an effective public utility company it can opt not to pass on to consumers its ‘system losses,’ similar to MERALCO’s system losses, because these losses can be declared and deducted from the gross income of the company for tax payment purposes.

It is time to revisit our privatization policies. CIBAC Party-list is drafting a measure that will prevent public utilities companies to unnecessary transfer the burden of system loss to the public.