HJR0017

Republic of the Philippines

HOUSE OF REPRESENTATIVES

Batasan Hills, Quezon City

NINETEENTH CONGRESS First Regular Session

HOUSE JOINT RESOLUTION NO. ________

Introduced by Honorable Representatives ARLENE D. BROSAS (Gabriela Women’s Party), FRANCE L. CASTRO (ACT Teachers Partylist), and RAOUL DANNIEL A. MANUEL (Kabataan Partylist)

JOINT RESOLUTION IMMEDIATELY SUSPENDING THE IMPLEMENTATION OF THE WATER RATE HIKE OF MAYNILAD AND MANILA WATER BEGINNING IN JANUARY 2023 AMID HIGH PRICES AND LINGERING ECONOMIC DOWNTURN

WHEREAS, Article II, Section 9 of the 1987 Philippine Constitution states that “The State shall promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of living, and an improved quality of life for all;

WHEREAS, the Metropolitan Waterworks and Sewerage System (MWSS) has given the green light to Metro Manila's two main water concessionaires to increase rates gradually over the next five years, beginning in January 2023 until 2027;

WHEREAS, Manila Water Co. and Maynilad Water Services, Inc.'s request for rate rebasing adjustments were approved by the MWSS board on November 10;

WHEREAS, Manila Water officials said the hike is necessary to supplement its P180 billion operational budget in the following years;

WHEREAS, Manila Water rates will rise by P8.04 per cubic meter in 2023, P5 in 2024, P3.25 in 2025, P1.91 in 2026, and P1.05 in 2027 Rate increases for 2026 and 2027 may reach P3.00 and P1.08, respectively;

WHEREAS, Manila Water consumers who consume 10 cubic meters will have an increase of P41.19 on their monthly bills, from P151.23 to P192.42 Households with 20 cubic meters will pay P425 from P333.47, an increase of P91.53. There will be an additional P187.10 charge for those who consume 30 cubic meters, from P679.02 to P866.12;

WHEREAS, Maynilad will implement a rate increase of P3.29 per cubic meter in 2023, P6.26 in 2024, P2.12 in 2025, P0.84 in 2026, and P0.80 in 2027;

WHEREAS, Maynilad’s rate adjustment for 2026 and 2027 will depend on the completion of the Kaliwa Dam project. Rates are expected to rise by P1.01 in the years 2026 and 2027 if the project is completed;

WHEREAS, Maynilad consumers who consume 10 cubic meters will see an increase of P5.28, P20.29 for consumers who use 20 cubic meters, and P41.71 for 30 cubic meters;

WHEREAS, with the rate increase, Maynilad will supposedly be able to fund P150 billion in water and wastewater projects over the next five years;

WHEREAS, 23 cities and municipalities in Metro Manila and Rizal will be affected by the rate rebasing adjustments of Manila Water. Meanwhile, Maynilad's rate increase will have an impact on 17 cities and municipalities covering the West Zone of the Greater Metro Manila;

WHEREAS, since the MWSS was privatized in 1997, the water concessionaires have used their monopoly to overcharge customers and make these excessive profits. Water rates have risen by 879% for Manila Water customers and 574% for Maynilad customers from 1997 to January 2019;

WHEREAS, amid the huge rate hikes since privatization, the quality of service by the two private water concessionaires have been marked by inefficiencies, service interruptions and other troubles which were endured by millions of customers;

WHEREAS, Philippine inflation rate remains unbearably high at 8.1% as of December 2022, the highest level since November 2008 or 14 years ago. It is expected to rise further in the coming months due to further commodity price hikes and with costlier payments for utilities;

WHEREAS, as a result of the all-time high inflation rate, the National Capital Region's real wage is estimated at P490, while other regions are experiencing lower real wages;

WHEREAS, the water rate hike is implemented amid an unprecedented economic crisis, high inflation rate, lack of adequate jobs, and low wages. This will only exacerbate the plight of poor families who are struggling to make ends meet;

NOW, THEREFORE, BE IT RESOLVED, by the House of Representatives and the Senate, to mandate the immediate suspension of the implementation of the water rate hike beginning in January 2023 amid high prices of goods and basic services and amid the lingering economic downturn.

Adopted,