Davao water utility seeks 60% rate hike over 3 years
DAVAO City’s water supply distributor has filed for a 60% rate increase, which it plans to implement over a three-year period, an official said.
Davao City Water District (DCWD) spokesperson Jovana Cresta T. Duhaylungsod said the proposed rate adjustments — at 30% in the first year, then 20% and 10% in the two succeeding years — is still under evaluation by the Local Water Utilities Administration (LWUA).
“Rest assured that once there is a decision (by LWUA)… we will implement it in tranches to cushion the financial impact,” she said in a media briefing.
DCWD currently charges residential customers P137.40 for the first 10 cubic meters (cu.m.) plus meter maintenance fee between P25.00 to P40.00.
Additional consumption is priced in brackets of P14.40 for the next 10 cu.m., P18.60 for 21-40 cu.m., P24.70 for 31-40 cu.m., and P36.00 per cu.m. thereafter.
DCWD’s last rate increase was approved in 2005, and was implemented under a staggered scheme up to 2013.
Ms. Duhaylungsod said the proposed rate adjustment is necessary for DCWD to generate funds for service area expansion and keep up with public and private infrastructure developments in the next 10 years.
She noted that while DCWD is categorized as a government-owned and controlled corporation, it has not been receiving any subsidy from the national or local government.
“What we use are the water bill payments that we receive to fund our operation and expansions,” she said. — Maya M. Padillo