CEBU CITY, PHILIPPINES — Vice Mayor Tomas Osmeña has expressed support for the Metropolitan Cebu Water District’s (MCWD) water rate increase even as the Cebu City Council has called for its suspension.
“I’m in favor of the increase in water rates. It’s necessary. We have to give them a chance—otherwise, if we keep things as they are, it’s only going to get worse,” Osmeña said during a press conference yesterday, stressing that the more pressing concern is water availability rather than cost.
He noted that residents already pay significantly more for bottled water, citing local brand Nature’s Spring, which he claimed costs as much as ₱20,000 per cubic meter and is sourced from MCWD.
Mayor Nestor Archival earlier echoed this position, saying the rate adjustment is needed to sustain operations and ensure long-term supply. The City Council, however, has taken a different stance.
During its regular session this week, councilors—excluding Osmeña, who was then serving as acting mayor—approved a resolution urging MCWD to suspend the April 1 rate hike. The adjustment adds an average of ₱23 per month on top of the 12 percent increase implemented in October 2025.
Under the new scheme, the minimum charge for residential connections with a ½-inch meter rose to ₱259.16 for the first 10 cubic meters.
Then acting vice mayor, Councilor Winston Pepito, who authored the resolution, said the increase places an additional burden on households already grappling with inflation and rising commodity prices. He proposed a three-month suspension to allow consumers time to adjust.
While awaiting MCWD’s formal response, the council is also exploring subsidy options for marginalized households.
Councilor Dave Tumulak proposed that the Office of the Mayor study the feasibility of subsidizing minimum charges for low-income subscribers, with MCWD asked to provide data identifying beneficiaries.
In a letter to the council, MCWD General Manager Atty. John DX Lapid clarified that the minimum charge is not a fee for unused water but a legally mandated “capacity charge” under the “readiness to serve” doctrine in utility economics.
“The minimum charge is not a fee for the water itself; it is a capacity charge. In utility economics, this is known as the ‘readiness to serve’ doctrine,” Lapid said.
He explained that 70 to 80 percent of MCWD’s costs are fixed, including debt servicing, electricity for pumps, pipeline maintenance, and personnel salaries—expenses incurred regardless of water consumption.
Lapid warned that removing the minimum charge would violate the Local Water Utilities Administration’s Water Rates Manual and could destabilize MCWD’s finances, potentially resulting in deficits or loan defaults. He added that the rate structure ensures the minimum charge does not exceed 5 percent of the average income of low-income households in the service area.
Osmeña, for his part, emphasized the need for reforms, even if they are unpopular.
He recalled that MCWD had previously been “close to bankruptcy” and said efforts were made to install new management, in coordination with the mayor, the Local Water Utilities Administration, and former chairman Ruben Almendras.
“We don’t realize—it’s not the price. We want water. What is adding 10 centavos? I don’t care. Just get water,” he said.
He also criticized past failures to address non-revenue water, citing leaks and illegal connections as major sources of loss.
“There’s no kickback in leaks,” Osmeña remarked, adding that instead of fixing system losses, the utility entered into supply contracts where “somebody makes money.”
He warned that about 35 percent of purchased water is not converted into revenue due to inefficiencies.
Osmeña further raised concerns over unregulated private wells, which he said contribute to saltwater intrusion in the aquifer.
“Because they don’t pay anything, they fill up swimming pools, wash cars, even buses. That’s what’s causing saltwater intrusion,” he said.
He proposed installing meters on private wells, particularly those used by large establishments such as hotels and corporations, to promote fairness and sustainability.
On pricing, Osmeña also questioned MCWD’s flat rate structure, arguing that water rates should reflect the actual cost of delivery in different areas.
He cited upland barangays, where water is often delivered by tanker trucks, as an example of why a uniform rate may be inequitable.
“For every area, water rates should be different. If it’s more expensive to supply water in Busay, then rates there should be higher,” he said.
Despite the backlash, Osmeña maintained that his position is rooted in long-term responsibility rather than public approval.
“It’s not my job to be popular. I’m here to help the city,” he said, reiterating his call for MCWD to address inefficiencies and secure a sustainable water supply.
| Written by Caecent No-ot Magsumbol with reports from Jose Luis Flores, CTU Tuburan Intern/FPL
