This is because the Local Water Utility Administration (LWUA) has yet to respond to MCWD’s proposal to increase the water tariff by 60 percent.
MCWD was initially set to implement the increase on July 1, 2023. However, pending the approval of LWUA, the government-owned and -controlled corporation (GOCC) cannot proceed with the rate changes.
Currently, MCWD charges P15.20 per cubic meter for the first 10 cubic meters in a month for residential consumers, with a minimum charge of P152. If the increase is granted, the minimum charge will be P243.
MCWD is also proposing a supplementary adjustment of 10 percent in 2024.
MCWD Chairman Jose Daluz III told SunStar Cebu on Sunday, July 9, that LWUA board has not yet convened to discuss MCWD’s application.
As long as there is no approval from LWUA, the water rate will remain unchanged.
However, Daluz said they anticipate a response from LWUA within two or three months.
The proposed increase aims to cover the expenses of MCWD’s ongoing and upcoming projects, which will enhance the water district’s services.
MCWD information officer Minerva Gerodias said that from 2015 to the present, MCWD has spent P2.1 billion on expansion and rehabilitation projects to improve service, as well as P12 billion on operational expenses.
Daluz expressed hope for a positive response from LWUA, explaining that MCWD’s purchase and procurement of water supply costs are increasing. He also said that MCWD’s expenses will further rise once the water desalination project begins, which is expected to be operational by October.
Gerodias said MCWD is a self-liquidating GOCC, and does not receive subsidies from the National Government.
It has been eight years since MCWD last implemented a water tariff increase, and the planned increase for 2020 was not implemented due to the Covid-19 pandemic.
MCWD claims to offer the cheapest water rates in the entire country.
MCWD supplies water to the cities of Cebu, Talisay, Mandaue and Lapu-Lapu, as well as the towns of Cordova, Consolacion, Liloan and Compostela.