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Written by EdCom and VGO Staff

Following the public outcry on the collection of a higher water rate to start this month, the provincial board took the cudgels of appealing, at least, on the mode of payment to ease the financial burden of consumers.

In last Friday’s regular session, the Sangguniang Panlalawigan presided by Vice Gov. Concepcion Lim, approved in mass motion, a resolution: “strongly recommending to the Board of Directors, Bohol Water Utilities, Inc. (BWUI) a sixty (60) equal monthly installment rate without interest as the term of payment in the new implementation of the retroactive water rates.”

The resolution was authored by board member Romulo G. Cepedoza, committee chairman on public utilities and franchises.

BWUI has announced it will start collecting this month the water rate adjustments as approved by the National Water Resources Board in its order dated September 2006. The adjusted rates had remained uncollected due to the pendency of a case filed by the City Government of Tagbilaran.

The Regional Trial Court, Branch 47, based in Tagbilaran City had earlier issued a restraining order and eventually a preliminary injunction against the implementation of the higher adjusted rates. BWUI elevated the case to the Court of Appeals, wherein on January 5, 2010 it declared that the NWRB approved rates are final and executory since October 28, 2006.

The appellate court also nullified the writ of injunction declaring that the regional trial court has no jurisdiction over the case.

The collection will cover a period of eighteen (18) months adding into the consumer’s regular monthly bill the difference between the NWRB-approved new rates (effective October 28, 2006) and the old water rates corresponding to the period November 2006 up to June 2010.

The water billing is seen to increase about 56% and will affect 70% of water consumers who are mostly marginal earners.

BWUI had maintained that Boholanos still enjoy the lowest water rates, compared to other similar utilities throughout the country. The Metro-Cebu Water District collects P136 on the first 10 cu.m. of consumption while BWUI collects only P80; and only 10.75 per cu.m. for those consuming 11-20 cu.m.

Cepedoza said the public opposition of the implementation is generally understandable, considered as a new financial burden with the invariable increase also of the prices of other basic commodities.

“With this impending increase, the burden of the people will continue to surge. This scheme must be adopted in order to ease the consumers’ burden of paying the said increase,” the board member from the second district added.

The Provincial Governor, on its letter dated June 10, 2011 addressed to the Board of Directors, BWUI, also asked that “if this retroactive rate needs to be implemented’ and being a part-owner of the company, we strongly recommend for the modification of the term of payment from 18 equal monthly installment to 60 equal monthly installment without interest”.

BWUI is a subsidiary of the Salcon Group of Companies which entered into a Joint-Venture Agreement (JVA) with the Provincial Government of Bohol signed in December 2000 under then governor Rene Relampagos.

Under the joint-agreement, the province retains 30% ownership while Salcon owns the bulk of 70%. The same is the agreement with the power utility, Bohol Electric Company Inc (BLCI). Both BWUI and BLCI were the former public utilities operated by the provincial government through the defunct Provincial Public Utilities Department (PPUD).

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