THE Davao City Water District (DCWD) will implement a 30 percent water rate adjustment beginning August 2022, the agency announced on July 27.
For the first ten cubic meters, the adjustment entails a minimum charge of P178.50 for residential and government connections, P357 for commercial and industrial connections, and P535.50 for bulk/wholesale.
For connections categorized as Commercial A, the minimum charge is P312.25, P267.75 for Commercial B connection, and P223.10 for Commercial C.
A varying commodity charge will also be applied for every 11 to 20, 21 to 30, 31 to 40, and above 40 cubic meters.
The rate adjustment is based on DCWD Board Resolution No. 22-170 with approval from the Local Water Utilities Administration (LWUA) per BOT Resolution No. 42 series of 2022.
DCWD Spokesperson Jovana Cresta Duhaylungsod told SunStar Davao on July 28 that the water rate adjustment is part of the 10-year development plan of DCWD aligned with the development of Davao City and to improve their operations.
“The development of Davao City is expanding in the second and third district. In the next few years, we’re seeing different development in residences, commercial, and industrial establishments,” Duhaylungsod said.
DCWD said in a statement that they will use the generated funds from the rate hike to work on infrastructure development, increase water supply, expand service coverage, reduce water losses, and improve its other customer services.
In addition, the new rate is set at a “reasonable level” affordable to the low income group of their clients, and the revenues generated is sufficient to meet the operation and capital requirements.
“This would help DCWD cope with the financial challenges it has been hurdling since the pandemic, especially with the consecutive price increases in fuel, chemicals, and construction materials, among others,” DCWD said.
The adjustment is the first of three tranches of DCWD’s water rate hike which implements 30 percent in 2022, 20 percent in 2023, and ten percent in 2024 but Duhaylungsod emphasized that the implementation of the second and third tranche is subject for evaluation.
“This is going to be the first tranche. After we implement this, at the end of the year we will have a review of our finances and if ever we see thatdespite the increase, kulang gihapon atong budget (our budget is still short) to continue financing our projects, then we will move for the implementation of the remaining tranches,” she said.
The adjustment was initially planned in 2019 to be implemented in 2020 but it was delayed due to the outbreak of the Covid-19 which resulted in the agency covering the costs brought about by the pandemic.
“From 2020 until now, we have been absorbing the price increases like fuel, and even in chemicals. If we are to continue to absorb the inflation, increases, etcetera, daghan na projects ang ma-sacrifice (many projects will be sacrificed). The postponement of these projects would eventually affect atong ability to supply water in the future,” she said.
Prior to this, the last rate adjustment of DCWD was in 2005 at 60 percent implemented in four tranches. (ICM)