"In the adequate water service to its customers, every water utility must receive sufficient revenue to ensure proper operation and maintenance of the system, its sustainability, and maintenance of the system's financial integrity." (NWRB Primer or Staff Setting)"
"Water rates are instruments for recovering the cost of providing adequate water service to customers and must reflect not only the fixed costs of the supply system, but also on the operating expenses of the water district. The cost of service should be equated with revenue requirements for the purpose..." (LWUA Manual on Water Rates)"
The Sorsogon City Water District (SCWD) thru its partner Primewater Infrastructure Corp. (PWIC) will partially implement the long overdue water rates adjustment on October 2021. The existing water rates were implemented way back year 2009. While it is true that on year 2017, a 12% increase was implemented, it was intended for the value added tax due to the government and not to the water utility.
As per the Joint Venture Agreement (JVA) by and between SCWD and PWIC, a 27% increase should have been implemented on October 2018. This never happened due to the issues on service obligations that are yet to be delivered by PWIC.
However, on July 22, 2021, the SCWD BOD passed Resolution No. 13-2021 allowing only 15% increase to be implemented on October 2021. This is to partially comply with JVA, recognize the recent improvements instituted by PWIC that were validated thru the satisfaction survey conducted by SCWD and to sustain the positive momentum towards full compliance of PWIC to the JVA for the ultimate benefit of the water consumers in the city.
The remaining, unimplemented 12% increase will come after PWIC complies with the conditions as set forth in the previously mentioned BOD resolution.
On top of the conditions is the source development at San Lorenzo, Bibincahan, Sorsogon City, whereby an expected 3,000 to 5,000 cubic meters per day will be added in the water system. It is expected to substantially improve the water supply in the east portion of the City.
The SCWD BOD and management believe that the public can be served best by our partner PWIC if the latter is adequately financed with rates based on sound engineering, social and economic principles.
It is expected that with the new approved rates, PWIC will provide the agreed levels of service, such as number of hours of service, water quality, non-revenue water percentage, service coverage and appropriate water pressure at which the service is provided.