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VOLUME XXVI No. 5
Tagbilaran City, Bohol, Philippines
August 14, 2011 issue
 

WATER RATE CONTROVERSY

 

Tagbilaran Mayor Dan Lim is set to file his petition opposing the collection of the water rate increase retroactive to 2006. Lim said the petition to the National Water Resources Board (NWRB) was initially scheduled to be filed last Friday but he asked that it be reset to next week because he wants to be personally present during the filing. The controversial retroactive collection imposed by the Bohol Water Utilities Inc. (BWUI) has been met by angry water consumers who resent the sudden increase of their water bills this year. Lim, who had opposed the sale of the water and power utilities during the administration of then Gov. Rene Relampagos and then Vice Gov. Edgar Chatto, had warned that the rates will increase because a private enterprise is profit-oriented.

The mayor has revived his attacks on the controversial sale, charging that Capitol stands to benefit from the increase by as much as P30 million given its 30% share. Chatto has not replied to the mayor’s allegation. “I want to be there so I will know if everything is in order and that we have complied with all the requirements,” he declared over his radio program “Ang Mayor sa Dakbayan” aired live over Station DyTR every Saturday morning. Lim acknowledged that the expressions of support to the petition exceeded expectations saying the signatories continue to pour in. In his petition, the mayor is asking whether BWUI can collect the unbilled differentials from Nov. 2006 to June 2010 which were not collected during the pendency of the injunction case filed by the city government. Lim contends that BWUI cannot yet collect the unbilled differentials since the decision granting the increase has not yet become executory. “In fact, there is no writ of execution issued by the NWRB,” the mayor pointed out. Lim insists that the collection retroactive to 2006 is “unjust, confiscatory and unconscionable”.

If BWUI insists in collecting the unbilled differentials equally spread in 18 months at the very least, Lim said each consumer would be shouldering an increase of around 100% per month in his water bill during the period. “It should be remembered that BWUI is a public utility,” the mayor noted. Lim said that the business and operations of a public utility are imbued with public interest. “In a very real sense, a public utility is engaged in public service – providing basic commodities and services indispensable to the interest of the general public,” he added. For this reason, a public utility submits to the regulation of government authorities and surrenders certain business prerogatives including the amount of rates that may be charged. Lim insists that the state has the duty to interpose its protective power whenever too much profit becomes the priority of public utilities. The mayor revealed that in the case of city public elementary schools alone, the unbilled differentials would total P900,481.55 while the billings for city government offices would amount to P1,144,031.58. Lim also insists that the decision of the Court of Appeals granting the increase did not specifically state that the unbilled rate increase during the pendency of the case will be collected.

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