MARCH 8, 2012 DATE

NR # 2672B
REF. NO.

Abolition of MWSS Regulatory Office pushed

A lawmaker has called for the abolition of the Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS-RO) and pushed for the creation instead of an independent Water Regulatory Commission (WRC). Basic water charges by the two current water concessionaires have steadily increased since 1997, underscoring the apparent inefficiency of the MWSS-RO to implement its mandate, said Rep. Marcelino Teodoro (1st District, Marikina City), author of House Bill 5790, which abolishes the MWSS-RO. The bill is now under consideration by the House Committee on Government Reorganization chaired by Rep. Cesar Jalosjos (3rd District, Zamboanga del Norte). Teodoro explained that the situation could be greatly attributed to the fact that the MWSS is funded by P100-million concession fees paid by both the Manila Water Company and Maynilad Water Services, Inc. Teodoro recalled that when MWSS was privatized and its operations was granted to the two winning concessionaires, MWSS retained ownership of all fixed assets and a regulatory office under its wing was created to monitor annual rate adjustments. The MWSS-RO has the mandate to compute the rate re-basing adjustments every five years to permit the concessionaires to recover over the 25-year period stipulated in their agreements, Teodoro said. Under the bill, the proposed Water Regulatory Commission shall be an independent quasi-judicial regulatory body to replace the MWSS-RO to be headed by a chairman with four members to be appointed by the President of the Philippines. The Chairman shall be a member of the Philippine Bar to serve as the Chief Executive Officer of the Commission. The bill also proposes a P100-Million allocation to be sourced out from the existing budget of the MWSS-RO for the initial operation of the WRC. Any balance shall initially be sourced from the Office of the President of the Philippine, and thereafter, the annual budget shall be included in the regular or special appropriations. The bill prohibits the Chairman and members of the Commission or any of their relatives within the fourth degree of consanguinity or affinity, either as investor, stockholder, officer, director, consultant or employee, in any company or entity engaged in the business of operating and maintaining the waterworks and sewerage systems and developing new water sources and must, therefore, divest through sale or legal disposition of any and all interests in the water utilities sector upon assumption of office. The WRC shall implement training programs for its staff to enhance the technical competence of the agency in the following areas such as evaluation of technical performance and monitoring of compliance with service and performance standards, performance-based rate-setting reforms, environmental standards and such other areas as will enable the agency to adequately perform its duties and functions. Likewise, the WRC has the authority to amend or revoke, after due notice and hearing, the authority to operate of any person or entity which fails to comply with the provisions of the proposed act, establish and enforce a methodology for setting rates and fees and set a lifeline rate for the marginalized customers. (30) dpt