Manila Water Co. Inc.’s failure to maintain a 24-hour water service connection to its 1.2-million customers will cost the Ayala-led company additional P1.1 billion as part of the penalty scheme that the Metropolitan Waterworks and Sewerage System Board has decided to implement.
But while the firm accepted to pay such fine, its top official denied that his company is the root cause of the water supply shortage almost half of Metro Manila recently experienced.
The MWSS Board has unanimously approved yesterday the recommendation of the MWSS-Regulatory Office to impose appropriate penalties on Manila Water relative to its failure to comply with Article 10.4 of the concession agreement.
Under the Section 10.4 of the Concession Agreement, Manila Water is required to meet its service obligations to provide 24/7 water supply to its consumers. It has failed to do so when it implemented low to no water interruption in March after it saw its reserve water coming from La Mesa Dam in Quezon City got depleted.
Some Manila Water customers are still suffering from the unstable water supply at present.
Based on the recommendation of MWSS-RO, Manila Water should pay the government P534 million in fines. An additional penalty of P600 million has also been imposed on the listed utility to be allocated in the funding of new water source.
The penalties are on top of Manila Water’s self-imposed penalty that would cost the company as much as P500 million. It will be recalled that Manila Water recently announced its voluntary and one-time bill waiver program for its consumers which began implementation in April 1.
Under the program, all consumers of the East Zone will receive a waiver equivalent to the first 10 cubic meters of their March consumption which will be reflected in their April bills.
Severely affected consumers or those consumers who experienced absolutely no water service for at least seven days between March 6 to 31 will not be charged at all for their March consumption. (Madeleine Miraflor)