News Release
June 13, 2103
The umbrella group Bagong Alyansang Makabayan today assailed the public consultations on new water rates being held by private concessionaires as “just for show” and “not transparent”. The group joined the Water for the People Network in a protest at the Seamo Innotech compound in Commonwealth Avenue where the consultations are being held.
“It appears that private water concessionaires have no intention of revealing the details of the water rate hike they are seeking. We are deliberately being kept in the dark. What they want is to surprise us at the last minute, when the deal is done,” said Bayan secretary general Renato M. Reyes, Jr.
In its May 31 invitation to consumers, the MWSS Regulatory Office said that “at the consultation, the concerned Concessionaire shallpresent to its customers and
stakeholders its proposed adjustments to water rates of based on its submitted Business and Investment Plan, and any justifications regarding these adjustments”.
“During the Maynilad public consultation held last June 11, there was no mention of rate hike in Maynilad’s presentation. What kind of public consultation on rate hike does not discuss the rate hike? Not only are consumers being exploited. They are also being treated as idiots by the private concessionaires,” Reyes said.
In its PowerPoint presentation, Maynilad said that it planned to “invest” some P115 billion for the next five years, but did not say how this is related to their proposed increase of P8.58/cubic meter in their basic tariff. When pressed for details, Maynilad said it cannot disclose any pending internal discussions with the water regulators.
“The proponents of the water rate hike did not say where exactly the new investments will be going, who will be funding these investments, as well as whatever happened to their previous investments for which we are being billed right now,” Reyes said.
“The public deserves to the details of these increases because we are the ones paying. The privatization of water services over the past 16 years has brought ever-increasing rates. But as far as we’re concerned, water rates should even be going down because the current rate we are paying includes projects that apparently were not completed or delivered,” Reyes added.
Bayan called on the MWSS RO to fully disclose the details of the rate hike proposals and the justification for the rate increase. The group also called on government regulators to move to lower water rates because of the questionable basis of the current tariff.
“Government is duty bound to uphold the welfare of the consumers. This must include transparency in any of its dealings with the private concessionaries. “What have they discussed so far regarding the rate hikes? How are the charges being justified? How are these being passed on to consumers? How much are the private concessionaires really earning?” the Bayan leader asked.
The militant group warned that Aquino will face mass protests in the run up to the State of the Nation Address because of its complicity with the rate increase.
“The privatization policy, from the time of Ramos to Aquino, has been all about profits over people. Private concessionaires think that their profit margins are more important than the welfare of the people. They can even choose to hide the details of their profit-making. Through all this, government is complicit. Any increase in water rates will benefit government via more Value Added Tax revenues and via the promotion of privatization projects in the Philippines. The rate hike is a positive message to prospective investors in Public Private Partnership projects,” Reyes said.
“In the end, the solution to our water woes is the reversal of the privatization scheme and orienting water services towards meeting the needs of the people,” he concluded. ###
