Saturday, January 21, 2006

EDITORIAL January 21, 2006

MKWD Increases Its Rates

The Metro Kalibo Water District (MKWD) has two kinds of news for its concessionaires in Kalibo, Banga, New Washington and Balete.
The good news is MKWD will reduce the water meter rental and maintenance fee by 50 percent from P20 to P10 per month per concessionaire effective in its March 2006 billings.
This reduction is pursuant to MKWD Board Resolution No. 01, Series of 2006 implementing the National Water Resources Board Decision (NWRB) dated November 18, 2005 on Case No. 03 – 059 – A regarding Rate Review.
The bad news is, effective also in March 2006 billing, the minimum water rate of 10 cubic meters in Kalibo will increase from P130 to P170 per month. This is an increase of 30.76 percent for residential consumers whose pipes are ½ inch in diameter. For those commercial and industrial consumers and those with bigger diameter sizes, the increases are much higher.
Next year, the P170 minimum rate for residential consumers will be further increased to P205 or 20.06 percent over this year. This rate will be 44.12 percent over the 2005 water rate fees schedule. For those who will consume over 10 cubic meters per month, they will pay from P21.04 to P24.80 per cubic meter after consuming the minimum depending upon the quantity consumed. The more the quantity consumed, the higher the rate.
MKWD concessionaires in Banga, Balete and New Washington will be billed P205 minimum per month effective their March 2006 billings Kalibo consumers will catch up with them next year. Moreover, after the 10 cubic meters minimum consumption of P205 per month, New Washington, Banga, and Balete concessionaires will pay P21.35 to P25.50 for the next cubic meters consumption for the month. This is P0.31 to P0.70 higher than the Kalibo consumers will say.
To encourage prompt payment of water bills, MKWD will give 10 percent discount during the March 2006 to February 2007 billing period; 7.5 percent during the March 2007 – February 2008 and 5 percent for March 2008 – February 2009. With this P205 minimum rate for 10 cubic meters per month and P21.35 per cubic meter for the next 11-20 cubic meters, P22.50 for the next 21-30, P23.95 for the next 31-40 cubic meters and P25.50 for the next 41 and above cubic meters, MKWD will beat all the other 29 big water districts in the Philippines as far as water rate schedule of fees is concerned.
Unless it has increased its rate, the second most expensive domestic water is P177 of 10 cu. m. minimum per month in La Union. This is P28 or 15. 82 percent lower than Kalibo. Like MKWD, La Union also gets its water from deep well. This price was made effective in March 2003.
The cheapest water is being sold by San Pablo City, Laguna since March 1, 2003 at P67.60 per 10 cubic meter minimum. The water is also pump from deep well. With the present costing of water in Kalibo, New Washington, Balete and Banga, a middle income family of six members will easily consume from 30 to 40 cubic meters of water a month. This means P650.00 to P905 expenses for water alone.
Can the Board of Directors, MKWD review its cost of water production especially on personal expenses? There can be some costs which can be reduced thereby reducing the cost of MKWD water for the good of its concessionaires.
Will MKWD collapse if its water rates remain as is? No. In its 2003 operations it made a net surplus of P2 million. It has also expanded its operations to the town of Balete. MKWD has even paid the prices of materials originally requisitioned but received lower quality goods. What a loss!
Yes, MKWD does not need to increase its water rates fees at this time especially when its consumers are in a difficult economic situation. /MP mailto:madyaas_pen@yahoo.com

No comments: