CITY OF SAN FERNANDO -- The City of San Fernando Water District (CSFWD) and its joint venture (JV) partner PrimeWater Infrastructure Corporation conducted a public consultation on Wednesday for a possible meager seven percent increase per year in the next five years.
This means a total increase of 35 percent on tariffs within a five year period.
The consultation was held at the CSFWD office here attended by more than a hundred people. The consultation is part of the long process for the increase that would have to be evaluated by the Local Water Utilities Administration (LWUA), which will issue its own computation, and again ratified by the board of directors of the CSFWD.
CSFWD Chairman of the Board Engr. Ferdinand Caylao said that that the increase would still take time and would not mean an immediate change in rate price.
“The increase will not be more than five percent income of the low income level in the city,” Caylao said, adding that the increase would ensure the continuous supply of water and better services in the city. He added that without the JV agreement with PrimeWater, it was already high time for the rate increase.
“The water utility has been absorbing the non-revenue water and systems loss and has not been charging these to consumers,” Caylao said, adding that the increase would greatly help the water utility in further realizing its development goals in the coming years. He added that even without the joint venture agreement, the cost of water generation, energy prices and the need to improve facilities and services has been pushing the water utility to increase its rates.
It could be remembered that PrimeWater is investing P3-billion to meet targets in water generation, expansion and rehabilitation of pumping stations, maintenance of buildings and other facilities, billing and collection, maintenance of waterlines and reduction of leakages, CSFWD chair Angelo David said.
The P3 billion is intended solely for capital expenditures and excludes power cost, personnel salaries and benefits, and JV share. The first five years scheduled P744 million for improving the water system.
Water production, now at an average of 1.3 million cubic meters per month, is projected to be raised to 2.19 million cubic meters per month.
Services will be expanded to 94,285 concessionaires in all 35 barangays, or an increase of 115 percent from the current 43,918 concessionaires.
In the succeeding years, projected rate adjustments will be at less than five percent yearly, subject to the review and approval of the LWUA.
At the end of the 25-year JV, the proposed total rate adjustment shall actually amount to only P240.20 including VAT after deducting the current minimum rate of P185 for the first 10 cubic meters.
The P185 minimum rate began in December 2012 and is deemed one of the lowest rates among water districts in Pampanga. The P185 has not been increased although CSFWD has spent P65.2 million in 2016 to improve the quality and supply of water.