MPIW reaffirms commitment to transparent water rate adjustment

By Francis Allan L. Angelo

Metro Pacific Iloilo Water (MPIW) reaffirmed its commitment to transparency and cooperation with the Iloilo City Council regarding its proposal for a water rate adjustment.

MPIW made the commitment after submitting its five-year service improvement plan, project updates, and achievements to the City Council to support its rate adjustment proposal.

In ensuring transparency, MPIW emphasized that providing these documents allows the City Council to be fully informed on where the proposed water rate adjustments will be allocated.

Angelo David Berba, MPIW’s Chief Operating Officer, welcomed the positive result of the recently concluded council hearing conducted by local legislators.

“We are grateful to the City Council for giving due course and a favorable response to the documents we submitted. Their understanding of the proposed increase from P20 to P29 per cubic meter is crucial to addressing critical issues and ensuring sustainable water supply management in Iloilo City and our franchised areas,” Berba said.

The City Council, convening as a Committee of the Whole, initiated an inquiry “in aid of legislation” last June 10 regarding MPIW’s proposal.

The inquiry followed a request from former councilor and lawyer R Leone Gerochi to examine documents related to MPIW’s operations and agreements.

MPIW clarified that certain documents requested by the City Council, such as those related to joint ventures with Metro Iloilo Water District (MIWD) and water supply agreements, fall under the authority of MIWD for release.

However, MPIW assured its commitment to help facilitate the disclosure process.

Under the joint-venture agreement, MIWD acts as the regulatory body overseeing compliance, while MPIW manages operational aspects, including distribution system maintenance, expansion, and rehabilitation.

MPIW emphasized its cautious approach in releasing documents related to the joint venture annexes, citing the need to protect confidentiality provisions stipulated in contracts.

Berba highlighted the company’s commitment to safeguarding sensitive information that could impact competitive advantage, violate contractual obligations, or compromise customer and employee confidentiality.

“Alongside compliance with existing data privacy laws, we are committed to meeting legal requirements for transparency in public disclosure,” Berba added.

Despite rising operational costs since 2019, including a 33% increase in bulk water prices, a 34% increase in fuel costs, a 74% increase in material costs, a 22% increase in chemical costs, a 25% increase in labor costs, and continuous increases in permitting costs affecting project implementation, MPIW has not adjusted its rates in six years.

Comparatively, MPIW’s current rates remain among the lowest in Metro Iloilo.

MIWD has officially submitted the tariff rate application to the Local Water Utilities Administration (LWUA), outlining detailed justifications for the proposed adjustment.

The application emphasizes the need for sustainable financial planning to support the already substantial budget for ongoing service improvements and operational efficiencies, ensuring improved water services for residents and customers.

“We have meticulously studied and consulted on this rate adjustment to balance the need for necessary improvements while avoiding overcharging,” Berba explained during the June 10 committee hearing.

MPIW’s proposed rate adjustment, initially planned for 2021 but delayed due to the pandemic, represents its first adjustment since taking over operations in 2019.