Water companies say SC decision won’t impact consumers’ bills

MANILA, Philippines — Water concessionaires Maynilad Water Services Inc. and Manila Water Co. Inc. argued there will be no new impact on consumers’ bills following the Supreme Court (SC) decision, which only affirms their status as public utilities and that their corporate income taxes (CIT) were already removed from their concession agreements.

Any calls for Maynilad and Manila Water to refund will be up to the high court.

The SC decision barred the water companies from charging their CIT to consumers as they were declared public utilities.

While the high court did not rule on any refund to customers for the amount billed in previous years, petitioners Bayan Muna chairman Neri Colmenares and executive vice president Carlos Zarate said they would push for a refund process.

“That’s up to the SC if there’s anything to refund,” Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO) chief regulator Patrick Ty said in a text message.

However, the MWSS-RO official said the latest SC ruling only vindicated its position and confirmed its decision not to allow Maynilad and Manila Water to collect CIT from customers.

MWSS-RO approves or rejects water rate adjustments of the two water concessionaires.

“We didn’t allow Maynilad and Manila Water to collect it. That is why they filed an arbitration case against us,” Ty said.

He was referring to the dispute notices filed by Manila Water and Maynilad after the MWSS denied their petitions to raise water rates in 2013.

In a text message, Maynilad corporate communications head Jennifer Rufo said the company has already received a copy of the SC decision.

“Maynilad already accepted its status as a public utility when we signed the revised concession agreement and when we applied for, and were granted, a congressional franchise. The ruling merely affirms that,” Maynilad said in a statement.

“Our existing tariff does not include past or future income taxes; this principle has already been established in our past rate rebasing exercises,” the west zone concessionaire said.

In a separate text message, Manila Water corporate communications head Dittie Galang said the SC decision will have no impact on the company’s current operations and to customers’ bills.

“Manila Water has already excluded corporate income tax from our operating expenses,” she said.