The Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS-RO) decided to await the final outcome of its arbitration with Manila Water Company, Inc. (Manila Water), before making any official pronouncements on the applicable resulting water rates for both the East and West Service Areas of Metro Manila.
“There are other matters which are identical to both arbitration cases and given the public policy, interest, and welfare issues involved, we believe that awaiting for Manila Water arbitration panel’s decision is the best prudent and most responsible way to do under this circumstances to ensure consistency in the conduct of our regulatory mandate under the Concession Agreement,” Chief Regulatory Yu emphasized.
In a press briefing, Chief Regulator Yu said that the MWSS-RO requested Maynilad Water Services, Inc. (Maynilad) to withhold any action that seeks to enforce or implement the award of the Appeals Panel in separate arbitration cases until such time that the proceedings in the arbitration with Manila Water are concluded.
“If the Appeals Panel in the Manila Water arbitration case releases its own award with different conclusion on those very same issues, our consumer will be confused and their reactions will be directed not only at the parties to the Concession Agreement but, more significantly, at the agreement itself. This is a scenario, we believe, is unnecessary and may be avoided,” Yu added.
Despite the best efforts of the MWSS-Manila Water Appeals Panel to conclude the arbitration proceedings in December last year and up to end of January 2015, it is not yet ready to release its Final Award up to now.
“It is our expectation and hope, however, barring any further unforeseen or unwanted events, that the Appeals Panel will render its award in that cases in the coming weeks,” Yu said.
On 29 December 2014, the International Chamber of Commerce Appeals Panel upheld the alternative rate rebasing adjustment of Maynilad allowing an increase in its base water rate.
Since the receipt of the award on 7 January 2015, the MWSS-RO promptly proceeded to review the document and evaluated possible grounds for clarification and upon conclusion of its review, it conveyed to the Office of Government Corporate Counsel a summary of its findings on 27 January.
“We acknowledge the Appeals Panel’s award in the Maynilad arbitration case, which is why the MWSS-RO has proceeded to undertake the needed review and evaluation,” Yu said.
Maynilad services customers in the West Zone that includes parts of Manila and Quezon City, west of South Super Highway in Makati, Caloocan, Pasay, Paranaque, Las Pinas, Muntinlupa, Valenzuela, Navotas, and Malabon as well as the municipalities of Bacoor, Imus, Kawit, Noveleta and Rosario in Cavite province.
Manila Water, on the other hand, services customers in the East Zone which covers parts of Quezon City and Makati, the southeastern parts of Manila, Taguig, Pateros, Marikina, Pasig, san Juan, Mandaluyong, and Rizal province.