
Maynilad Water Services Inc. on Monday blasted regulators for their “continuing refusal” to give the green light on the company’s tariff increase as recommended by an arbitration panel. The company laments having to suffer “substantial damages” because of the Metropolitan Waterworks and Sewerage Systems (MWSS) inaction. Earlier, Maynilad had said it was losing P208 million a month. “The decision was rendered by an arbitration panel that MWSS helped constitute pursuant to a dispute resolution process that MWSS itself designed and imposed on Maynilad as part of the concession agreement,” Maynilad president Ricky Vargas said in a statement. “Maynilad is completely puzzled and dismayed by MWSS Administrator Gerry Esquivel’s and Chief Regulator Joel Yu’s sudden about-face and refusal to keep their word and to honor the decision of the arbitration panel,” Vargas said. Maynilad in early 2013 submitted to the MWSS-Regulatory Office a business plan for the five years until 2017, which requires an increase in the company’s basic charges by P8.58 a cubic meter. In response, the MWSS-RO issued memorandums ordering Maynilad to cut rates by P1.46 a cubic meter for the five years until 2017 or 49 centavos a year. Last January, Maynilad’s major stockholders announced that an appeals panel with the International Chamber of Commerce had decided in its favor, awarding an average increase of P3.06 a cubic meter on top of the current basic rate of P31.28 a cubic meter. The other concessionaire, Manila Water Co., went through the same thing—it proposed to raise rates by P5.83 Read More …