MIWD Seeks Review of Water Tariff Policies

By Rjay Zuriaga Castor

The Metro Iloilo Water District is urging the national government to review existing policies on water tariff adjustments to help local water utilities meet rising operational and infrastructure demands.

MIWD General Manager Alfredo Tayo made the call during a water dialogue held June 19, citing the need for updated guidelines to ensure the long-term sustainability of water services.

“I really want to call the attention of our regulators to please revisit their policies, especially when it comes to target rates increase,” Tayo said.

The Local Water Utilities Administration, which regulates and approves water tariff rates, caps any adjustment at a maximum of 60% of the current rate to balance financial sustainability with consumer protection.

Tayo clarified that proposed rate increases are not meant to burden consumers but to fund essential services.

“Water districts increase rates to cover necessary operating expenses, debt servicing, capital improvements, and contingency reserves,” he explained.

He added that advanced technology is required to deliver 24/7 water services, which current regulations make difficult to support.

“Apparently, there is now a need for us to ease, just ease a little bit — the procedures and the regulations concerning tariff rates remain the same,” Tayo said.

Tayo noted that MIWD’s system still includes pipelines dating back to 1920, and a complete network overhaul would require at least PHP16 billion.

“You see, when you inject water into this part of Iloilo, you would not know when the next burst will occur because these pipes are old and you cannot just excavate,” he said.

In 2018, MIWD partnered with Metro Pacific Water to form Metro Pacific Iloilo Water, which now manages distribution, rehabilitation, and wastewater services in Iloilo City and seven nearby municipalities.

MPIW has proposed raising the basic water tariff from PHP20 to PHP29.19 per cubic meter, pending approval by LWUA.

If approved, it would be the first rate hike in six years, despite rising operational costs since 2019.

“We need funds for technology. We need funds to deliver service. Capital expenditure is no joke if you want to rehabilitate your own pipes,” Tayo said.

He also raised concerns over regulatory inefficiencies and policy fragmentation that hamper water service delivery in Iloilo.

“There is a highly fragmented regulatory framework,” he said, pointing to delays caused by inconsistent policies among various government agencies.

Simple tasks such as repairing water leaks on major roads, he said, require navigating overlapping jurisdiction.

“The problem is the fragmentation of policies where you have to meet various government agencies before you can resolve issues like a simple water leak on the highway,” he said.

Tayo emphasized the need for a whole-of-government approach to improve coordination among national agencies, utilities, and local governments.

“Water is a highly complicated business,” he said. “It requires a whole-of-government approach to solve multi-faceted issues that encompass several agencies of government.”