Metro Iloilo water rates to rise in phases

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By Rjay Zuriaga Castor

After six years of deferment, water bills in Metro Iloilo are set to increase beginning in November 2025, with Metro Pacific Iloilo Water implementing a phased rate adjustment that will push the basic charge from PHP 20 to PHP 28.67 per cubic meter.

MPIW Commercial Head Kathleen Sadio said the adjustment will be implemented in two tranches.

The first tranche will increase the rate to PHP 25.20 per cubic meter, which will be reflected in the November 2025 billing.

The second tranche, an additional PHP 3.47 per cubic meter or PHP 28.67 per cubic meter, will take effect in March 2026.

“For minimum consumption, which is the average consumption in a household, that’s 0 to 10 cubic meter, we charge it at PHP 200, but effective November 2025, it will become PHP 252.02,” Sadio explained.

She said the adjustment was divided into two phases to give consumers some leeway before the full increase is imposed next year.

“It’s a management decision, considerate enough that every increase has an impact on our consumers, that’s why we implemented it in two tranches, so that it won’t be too heavy in our pockets,” she added.

The adjustment will cover consumers in Iloilo City’s districts of Jaro, Molo, Mandurriao, La Paz, City Proper and Arevalo, as well as the towns of Maasin, Cabatuan, San Miguel, Santa Barbara, Oton, Pavia and Leganes.

MPIW currently serves more than 50,200 concessionaires, a mix of residential and commercial customers.

Sadio said the same adjustment schedule will apply across all classifications, whether residential or commercial.

Despite the increase, MPIW maintained that its rates remain among the lowest in Metro Iloilo and compared with other highly urbanized cities, noting that South Balibago Waterworks, another distributor serving most of Jaro, charges PHP 35.65 per cubic meter, while Metro Cebu charges PHP 24.30 and Davao charges PHP 21.40 per cubic meter.

ADDRESSING WATER SUPPLY ISSUES

Sadio acknowledged public dissatisfaction over the rate increase, particularly in areas experiencing water shortages where households pay regularly but still do not receive adequate supply.

She stressed that MPIW is expediting the completion of its pipe-laying works and other major infrastructure projects.

“We are currently conducting a dry run of valving schemes, and for areas beyond the reach of these schemes, we will deploy water tankers,” she said.

She added that MPIW is also speeding up nonrevenue water reduction projects, such as fixing pipe leaks, to improve water availability, especially for households located at the far ends of the pipeline.

MPIW’s new rates were approved by the Local Water Utilities Administration in August 2025, and the company filed its tariff application in 2023 and completed public hearings across eight local government units on May 30, 2024.

The firm originally proposed raising the basic rate to PHP 29.19 per cubic meter.

Under LWUA regulations, the increase in the minimum monthly water charge for low-income groups in a coverage area should not exceed 5% of their average monthly family income.

This rule ensures that water rate increases remain affordable for low-income consumers, preventing them from being burdened with excessive water bills.

LWUA also limits water rate increases to not more than 60% of the current rate in general, and MPIW’s increase from PHP 20 to PHP 28.67 per cubic meter represents a 43.35% adjustment.

The rate hike was originally scheduled in 2019 but was deferred due to socioeconomic factors, including the pandemic, rising fuel and electricity costs, and concerns raised by local government stakeholders.

This is the first adjustment in six years despite rising operational costs, including a 33% annual increase in bulk water prices and a 74% increase in material costs since 2019.

“Since 2019, when MPIW assumed operations, there have been several increases in our fuel and even in the minimum wage, despite that, we still postponed the tariff adjustment, but the driver and the majority of why we requested for rate adjustment is because of the rising cost in bulk water supply,” Sadio said.

She stressed that MPIW has been subsidizing bulk water supply costs in recent years, prompting the need for the adjustment.

She clarified that the increase will not fund capital expenditures such as infrastructure projects but will instead cover operational expenses, including salaries, electricity and fuel.