THE Metropolitan Cebu Water District (MCWD) will enforce a new policy on unpaid water bills beginning Oct. 1, 2025: consumers will have one month to pay, plus a seven-day grace period, before service is cut off.
For years, MCWD allowed consumers two months to catch up on missed payments. But it says that policy often left households facing bigger debts they struggled to pay off. The shift comes as MCWD works to improve its collection rate, fund water projects and align with the practices of other utilities, according Minerva Gerodias, the water utility’s spokesperson.
“This new policy is actually more beneficial to consumers, especially those with limited income. It prevents bills and penalties from accumulating while ensuring continuous service,” Gerodias said.
Big question
Why is MCWD shortening the grace period for overdue bills, and what will this mean for consumers in Cebu?
How we got here
MCWD is a government-owned utility that provides water to Metro Cebu households. Unlike private companies, it does not operate for profit, and its collections go directly into maintaining and upgrading the water system.
Old policy: Water service is disconnected only after two months of nonpayment. For example, if a consumer skipped their October bill, service would not be cut until December.
New policy: Effective Oct. 1, disconnection happens after one month and seven days. If the October bill is unpaid, service will be disconnected
in November.
MCWD likens the shift to a loan term: the two-month policy was like a 60-day loan, harder to repay once debts piled up; the new rule is like a 30-day loan, with smaller, more manageable amounts.
Scale of the problem
Nonpayment is not a small issue. From January to June 2025 alone, MCWD disconnected 24,498 accounts:
January: 3,298;
February: 4,863;
March: 5,394;
April: 3,530;
May: 3,911; and
June: 3,502.
These numbers highlight both the challenge of collection and the strain on households with unstable income.
Why MCWD is doing this
Reducing household debt. A P300 bill doubles to P600 by the second month, not counting penalties. MCWD argues that settling a smaller amount monthly is easier than carrying over unpaid bills.
Improving collections. The Local Water Utilities Administration requires MCWD to maintain at least a 95 percent collection rate. As of mid-2025, it stands at 92 percent.
Funding water projects. Collection delays reduce cash flow for MCWD’s expansion and maintenance projects.
“Delays hinder development and could attract closer scrutiny from regulators,” Gerodias told SunStar Cebu.
Aligning with other utilities
Globe Telecom and PLDT disconnect subscribers within short grace periods. Other water districts, like Carcar in southern Cebu, already implement one-month payment rules.
Who will feel the impact
Low-income families: The shorter payment cycle may be tough for households living paycheck to paycheck.
Small businesses: Shops that rely on water for daily operations could face disruptions if they miss deadlines.
General consumers: Even middle-income families will need to adjust budgeting habits to avoid disconnection.
Still, MCWD argues the policy benefits everyone in the long run by keeping bills smaller and manageable.
What consumers can do
To adjust to the new system, MCWD is encouraging customers to:
Update contact information through its online Consumer Information Update form or by messaging its official Facebook page.
Use flexible payment channels like GCash, ECPay and Bayad Center, which operate even on weekends and holidays.
Pay overdue bills at partners such as SM Bills Payment Centers and M Lhuillier branches.
Watch for reminders: MCWD said it will send notices before disconnections to help families avoid penalties.
Payment system change
The new policy is a package of changes aimed at balancing consumer protection with the utility’s financial stability:
Grace period: Extended from three days to seven days after the due date.
Late fees: A two percent charge applies after the grace period.
Disconnection: Service is cut after the grace period is over.
Reconnection fee: P335, added to the next bill.
Same-day restoration: MCWD has added teams to reconnect water on the same day payment is made.
Bottom line
MCWD’s new rules mean consumers will have less time to pay, but the goal is to make debts easier to manage and prevent households from being buried in unpaid bills. The policy also strengthens MCWD’s finances, ensuring that water supply projects in Cebu can move forward.
The trade-off? Families with tight or unpredictable income must adjust quickly — or risk going without water. / EHP