THE Baguio Water District (BWD) has assured consumers that there will be no increase in water rates.

BWD general manager Salvador Royeca said despite the need to repair facilities, any rate increase would be deferred.

“We do not have any impending water rate increase despite us wanting to have one, because the four tranches salary standardization law and where do we get this? We generate our own funds here at the BWD so we really need to look into the efficiency of our system otherwise, where will we get this. Would it be on a pass on rate basis? I am worried because there is another impending salary rate increases with four tranches,” Royeca explained.

According to the Local Water Utilities Administration (LWUA), a water district’s rate is determined by the cost of systems expansion, operation and maintenance cost, number of connectors, debt service needs of the water district, 10 percent reserves and its operating efficiency.

Water rates are implemented only after they are presented in a public hearing and after review and approval by LWUA.

“I would like to correct the impression that we are going to have a water rate increase. I don’t know what message they want to send in a previous news article that came out,” Royeca added.

To ensure the average user in the city can afford the service provided by the water district, rates are set through a socialized pricing scheme.

Big water users such as industries and commercial establishments are charged higher rates which, in effect, subsidizes the smaller but more numerous water consumers.

In addition, a lifeline rate ceiling is also set, equivalent to 5.0 percent of the annual income of the low income group.