Maynilad wins appeal for water rate hike #MPI #DMC MANILA (UPDATE) – The appeals panel has ruled in favor of Maynilad Water Services Inc in its row with the Metropolitan Waterworks and Sewerage System (MWSS), paving the way for the west zone concessionaire to raise base rates. In a disclosure to the Philippine Stock Exchange on Monday, DMCI Holdings, one of the owners of Maynilad, said the International Court of Arbitrations appeals panel for Maynilad and MWSS upheld the water concessionaires alternative rebasing adjustment. “This will result in a 9.8 percent increase in the 2013 average basic water charge of P31.28/cu.m., inclusive of the P1.00 Currency Exchange Rate Adjustment which the MWSS has now incorporated into the basic charge,” the firm said. The decision will mean an additional P12.60 for users of 10 cubic meters per month; P50.40 for users of 20 cubic meters per month; and P79.80 for users of 30 cubic meters per month. “This decision confirms that the Concession Agreement works, and restores investor confidence in the public-private partnership program of the Government. This also ensures the continued implementation of Maynilad’s capital expenditure projects that are intended to benefit further our customers,” said Maynilad president Ricky Vargas. Maynilad added that it is willing to implement the increase on a three-year staggered basis “to mitigate the impact of the Award on its customers in the West Zone of Metro Manila subject to approval of the MWSS.” To recall, the government had rejected Maynilad and Manila Waters application to increase base rates in 2013. This prompted the two water concessionaires to elevate the case for arbitration before the International Chamber of Commerces ICC. The decision of the appeals panel is final and executory. There has been no ruling for the case of Manila Water. On Monday, Maynilad and Manila Water have started charging the foreign currency differential adjustment (FCDA) for the January consumption of all customers. Consumers will see the increase in their February bill. Meanwhile, MWSS chief regulator Joel Yu said they have yet to receive a copy of the decision, and will have to review necessary steps moving forward. abs-cbnnews/business/01/05/15/maynilad-wins-appeal-water-rate-hike 1/5/2015
Posted on: Tue, 06 Jan 2015 02:33:20 +0000
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