Entrepreneurial Farmer

Ambrosio R. Villorente

MKWD Rates Increase

Seriously speaking, concessionaires of Metro Kalibo Water District (MKWD) will enjoy paying additional expenses without equivalent increase in the quality and quantity of water delivered.

MKWD has announced in its notice to our valued concessionaires thus "please be informed that effective January 2011 consumption" or "February Billing Our New Water rates schedule for Kalibo are as follows" (please see the rate on page 3)

The notice is very tricky. It did not say, "the water rates are increased". It only said "the new water rates schedule for Kalibo area". It did not also print the previous rates as basis for comparison.

But when I checked my water bills for December 2010 it revealed: due date – January 12, 2011, present reading – 995, previous reading – 994, bill amount – P340, meter rental – P10.

The data above show I consumed one cubic meter for the period December 1, 2010 to January 2, 2011. With this one cubic meter consumption, I am asked to pay P340 or for its minimum consumption of 10 cubic meters a month.

This means P34 per cubic meter. Moreover, MKWD charges P10 per month for meter rental. MKWD charges me a total of P350 for one cubic meter of water consumed monthly. I had been paying this for the last three years.

Should I fail to pay the P350 on the due date which is on Jan. 12, 2011, P34 or 10 percent of the bill will be added as penalty. If MKWD fails to receive my payment, the water connection will be disconnected on January 17 or five days after its due date.

This is threatening. It is horrible and dreadful. My water connection classifi-cation is "commercial/industrial, one half inch in diameter pipe. MKWD in its new water rates will charge me P410 minimum. This means per cubic meter of water cost P41. Comparing to the previous rate of P34 per cubic meter, there is a seven pesos (P7) increase or 21 percent. This is skinning a concessionaire alive.

　
MKWD 2007 Report

This writer wishes to thank the management of Metro Kalibo Water District (MKWD) for honoring his request for a copy of its latest Annual Performance Report. Thank you very much Mr. Renato T. Albar, General Manager for providing Entrepreneurial Farmer the 2007 report four months after letter request was sent in September. A follow request was sent in December 2010 and a copy of its audited 2007 report was received on December 10.

Rich MKWD

I was lucky to secure the 2007 performance report from its. Gen. Manager Renato Albar. I was told the 2008 and 2009 are not available as they are still being audited.

Thank you manager Albar. The 2007 is useful to us. It reveals that as of December 31, 2007, MKWD has a total asset of P330,649,701.34. It increased by P17 million or 7.97 percent over 2006.

In year 2007, its gross income was P94,615,314.82. It also spent P78,323,541.13 or a net income (before income tax) of P17,145,965.90. The operational expenses were for personal services of P29,220,718.80; for maintenance and other operating expenses – P32,964,677.51 and financial expenses P16,138,144.82.

While MKWD’s net income was P17.5 million in 2007, it is probable that it has also equal or higher net annual income in 2008, 2009, and 2010. The 2007 figures show, MKWD increased its 2007 net income over 2006 operation by P9.5 million or 121.57 percent. For the last three years, MKWD management appears to have improved and therefore got more net income.

If MKWK is making more money until 2010, why increase its water rates schedules? /MP