Maynilad Water Services

People Win vs. Corporatist Greed

Posted on September 20, 2013

by: Mentong Laurel

ON September 15, 2013 newspapers front-paged the MWSS (Metropolitan Waterworks and Sewerage System) order for water concessionaires In Metro-Manila to cut their water rates for the next five years. Manila Water for the east zone is to reduce its rate by P 7.24/cubic meter and Maynilad Water in the west zone by P 1.46/cubic meter. The two privatized and corporatized water service utilities said they will dispute the MWSS order and submit it to arbitration proceedings. Manila Water claimed the tariff reduction would compromise its ability to serve its customers fully while Maynilad said it was “unjustified”.

(photo credit: http://waterforthepeople.wordpress.com)

The two water companies applied for rate hikes. But various consumer activist groups, individual and media advocates questioned the propriety of the companies passing off its income taxes to consumers. The debate raged since June with the public weighing heavily against the water companies and its apologists on the fairness and legality of passing off income taxes to consumers. The MWSS and the advocates stood strongly on the ground provided by the Puno Supreme Court in a 2003 decision, supported by COA (Commission on Audit) findings that disallowed Meralco’s passing on income tax to consumers and granting a P 30-B refund to its five million customers. #OpinYon #opinion

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