PRICING GAP HURTS: Lack of Water Pricing Hampers Conservation, Equity – NWRB

By Rjay Zuriaga Castor

The National Water Resources Board has raised concerns over the absence of a water pricing mechanism, saying it hinders sustainable and equitable water use across the country.

“There is no clear or standardized pricing mechanism for water that reflects its true economic value, scarcity or cost of administration and protection,” said Engr. Susan Abano, chief of the NWRB Policy and Program Division.

Speaking at a water dialogue in Iloilo City last week, Abano said the lack of pricing guidelines limits incentives for conservation, efficiency and cost recovery, while also contributing to inequity and financial constraints.

Without a pricing framework, she said the agency struggles to account for the financial cost of water extraction, make informed pricing decisions on water rights or raise enough revenue to support its programs.

Abano proposed a study on implementing a natural accounting system for water resources in areas with comprehensive water assessments and raw water pricing, targeting rollout in 2026.

She also flagged a legal opinion from the Commission on Audit that questioned NWRB’s authority to collect annual water charges, which has led to audit disallowances.

To address this, the agency is considering seeking a clarificatory order from the Office of the President to affirm its collection authority.

“We also appeal to COA for a review and clarification of its legal opinion,” Abano added.

She pointed to persistent institutional and governance gaps that challenge the NWRB’s dual role as both regulator and administrator of water resources.

“The Philippine water sector remains highly fragmented, with about 30 water-related agencies involved and no clearly defined roles,” she said.

Because of unclear mandates and limited resources, the agency is unable to fully enforce its responsibilities.

Abano urged the national government to strengthen institutions and streamline mandates through rationalization, clearer coordination mechanisms and improved agency roles.

She also called for enhancing NWRB’s internal capacity by establishing dedicated technical, legal and enforcement units to fulfill its regulatory and policy functions.

Expanding and promoting river basin organizations for integrated watershed-level planning and management was also recommended.

Abano stressed that reforms must be supported by enabling legislation, increased funding and a data accountability framework to improve governance and reduce inefficiencies.

She cited the agency’s weak regulatory and enforcement capacity, largely due to budget and staffing limitations.

“We cannot carry out our responsibilities due to limited budget,” she said.

Abano added that NWRB’s small team and constrained funding make it difficult to conduct essential functions like monitoring service providers, technical reviews and inspections.