Maynilad Water Services Inc. said Tuesday foregone revenues as a result of the government’s refusal to implement tariff adjustment soared to P4.9 billion.
The west zone concessionaire is awaiting the results of an arbitration case filed with the International Chamber of Commerce in Singapore.
Maynilad chief finance officer Randy Estrellado told reporters the pending arbitration was not complicated and could be resolved soon.
“This is not a complicated arbitration. We don’t expect it to take long. Foregone revenues when we filed in February was P3.4 billion. Now it’s P4.9 billion. It’s the difference of tariff that we charge and what we should be charging,” Estrellado said.
Estrellado said if Maynilad would win the arbitration case, “it gives us the right to go after the government.”
Maynilad is the water and wastewater services provider for the 17 cities and municipalities that comprise the west zone in Metro Manila.
Maynilad said earlier this year it would pursue an appeal on the government’s decision to grant a lower water rate increase, despite a favorable ruling from an arbitration body.
Maynilad reiterated its position after the Metropolitan Waterworks and Sewerage System board granted the company a 7.52-percent adjustment in its basic water rate.
MWSS approved an average increase of P1.35 per cubic meter to Maynilad’s basic charge of P31.25 per cubic meter.
The currency exchange rate adjustment component of the basic charge was not included due to the implementation of a differential adjustment.
“This is a step in the right direction as we are entitled to a CPI adjustment and any delays will just increase future adjustments. Additionally, any positive adjustment now will reduce the continuing claim we have on the government undertaking,” Estrellado said earlier.
Maynilad customers who consume 10 cubic meters will see a decrease of P4.12 a month. Those who consume 20 cubic meters will see an increase of P2.22 per month, while those using up to 30 cubic meters will pay P15.52 more.
Estrellado said despite the rate adjustment, the company would still pursue the arbitration case in Singapore. The International Chamber of Commerce last year ruled in favor of Maynilad, approving a higher tariff, including passing the income tax to consumers.
The appeals panel’s decision translates into an average increase of P3.06 per cubic meter.
Maynilad earlier filed another arbitration case before the international arbitration court in Singapore against the government for its alleged refusal to implement a tariff increase.