Water rate hike in Iloilo draws protest from BAYAN Panay

By Juliane Judilla

Metro Pacific Iloilo Water (MPIW) will implement a two-phase water rate increase beginning November 2025, raising the basic charge from PHP 20 to PHP 28.67 per cubic meter by March 2026.

The Local Water Utilities Administration (LWUA) approved the hike, with the first tranche raising the rate to PHP 25.20 in November 2025 and the second raising it to PHP 28.67 in March 2026, marking a 26% and 43% increase, respectively.

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

Sadio explained that the adjustment was split into two tranches to ease the burden on consumers, stating, “It’s a management decision, considerate enough that every increase has an impact on our consumers.”

The rate hike applies to over 50,200 customers in Iloilo City’s districts and surrounding towns, including Maasin, Cabatuan, San Miguel, Santa Barbara, Oton, Pavia, and Leganes.

Despite the increase, MPIW argued that its rates remain competitive, citing other water providers like South Balibago Waterworks in Jaro, which charges PHP 35.65, and Metro Cebu and Davao at PHP 24.30 and PHP 21.40, respectively.

Militant group Bagong Alyansang Makabayan (BAYAN) Panay condemned the increase, criticizing MPIW for poor service delivery and citing high nonrevenue water losses of 39%.

BAYAN Panay claimed only 26% of the company’s target service area is covered, with just around 46,000 households served despite six years under the joint venture.

The group said the increase will not fund new infrastructure but instead cover operational expenses like electricity, fuel, and maintenance—costs that should be absorbed by MPIW if it had managed its resources efficiently.

“Water companies that rely on constant rate hikes to keep operations afloat only prove the failure of state policies that surrendered water governance to a handful of private corporations,” BAYAN Panay said.

MPIW confirmed that the increase will not be used for capital expenditures but to address rising costs in bulk water supply, which have jumped 33% annually since 2019, along with a 74% increase in material costs.

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

MPIW acknowledged service issues, noting public complaints from underserved areas, and said it is expediting pipe-laying, valving schemes, water tanker deployment, and leak repairs to improve supply.

The company filed its tariff adjustment application in 2023 and completed public hearings across eight local government units on May 30, 2024.

LWUA rules limit rate increases to 60% of current charges and require that new minimum water bills for low-income households do not exceed 5% of their monthly income.

BAYAN Panay argued that invoking inflation to justify hikes sets a precedent for more increases, adding that Ilonggos will never be grateful for water rate hikes—“whether delayed or on time.”

The group demanded the immediate suspension of the new rates and a public audit of MPIW’s financial and performance records.

As an alternative, BAYAN Panay called on local governments to reclaim water utilities and establish publicly managed, community-based water systems.