The Maynilad Water Services Inc. (Maynilad) is waiving its rate increases it is qualified to implement for 2021, including the next tranche of the rate rebasing adjustment as well as the mandated Consumer Price Index (CPI) adjustment.
The water firm said it is undertaking such a move due to the coronavirus disease 2019 (Covid-19) pandemic affecting the economy and businesses. It was not stated, however, if Maynilad will implement rate adjustments once the pandemic is over.
“During these difficult times when no one is spared the economic impact of the Covid-19 pandemic, Maynilad is one with (the) government in finding ways to help our countrymen make the situation more manageable. In this regard, Maynilad is forgoing the rate increases it is qualified to implement in the coming year — specifically the already-approved rebasing adjustment for 2021, as well as the mandated CPI inflation increase for the year,” Maynilad said in a statement on Tuesday.
With this deferral, the west zone concessionaire said it hopes to “alleviate the day-to-day struggles of its customers as they and the whole country strive to recover from adversity and rise stronger than before, ready to start anew.”
Rate rebasing, which is done every five years, is the review of water utilities’ past performance and the projection on their future cash flows.It is supposed to set the water rates at a level that would allow water concessionaires Maynilad and Manila Water Company Inc. to recover their expenditures and earn a rate of return. SOVEREIGNPH