MCWD defends collection of minimum fee charges

Local

AS COMPLAINTS over water bills continue to mount in communities hit by dry taps, the Metropolitan Cebu Water District (MCWD) on Monday, Jan. 12, explained why households are still charged a minimum fee even when little to no water flows from their faucets.

The clarification was in response to a resolution filed by Cebu City Councilor Harold Go, who has asked MCWD to suspend minimum charges for households that recorded zero consumption, particularly those affected by prolonged service interruptions after Typhoon Tino.

In a statement, MCWD said the minimum charge is not a payment for water consumed but a “readiness to serve” or capacity charge, one that allows the water system to remain operational even during outages.

MCWD said about 70 to 80 percent of its operating expenses are fixed costs that must be paid around the clock, including loan payments for infrastructure, electricity for pumping stations, pipeline maintenance, and employee salaries.

“These costs are incurred whether or not a household turns on its tap,” the agency said, explaining that the charge ensures pipes remain pressurized, meters are read, and service connections stay active.

The water district compared the fee to a subscription, where consumers pay for the availability of the system rather than solely for usage. Charging only when water flows, MCWD warned, would leave the utility without funds to maintain and repair its network during service disruptions.

MCWD also pointed out that it is a government-owned and controlled corporation under Presidential Decree No. 198 and is required to be self-sustaining, relying entirely on consumer payments rather than regular subsidies from the national government.

Under rules set by the Local Water Utilities Administration, MCWD said the minimum charge is a prescribed mechanism for recovering fixed costs. Removing it for zero-consumption accounts would violate national standards and could lead to financial losses, loan defaults, and long-term damage to the water system.

Addressing concerns about affordability, MCWD said safeguards are in place for low-income households. The agency noted that the minimum charge for residential users is capped so it does not exceed five percent of the average income of low-income groups in the service area.

Go earlier argued that the policy is unfair to residents who went weeks without water following Typhoon Tino, which damaged major pipelines and facilities across Cebu City.

“Zero ang consumption, pero naa gihapon singil,” Go said in earlier remarks, insisting that consumers should not be billed for a service they did not receive.

He has called on MCWD to suspend minimum charges during prolonged outages beyond residents’ control.

The billing issue has unfolded as parts of the city remain dependent on water rationing, tankers, and donations more than a month after the typhoon struck on November 4.

MCWD acknowledged the frustration of affected communities but maintained that scrapping the minimum charge would weaken the very system needed to restore a reliable supply.

The agency added that the long-term solution lies in increased investment in infrastructure and system upgrades, not in removing the financial structure that supports operations.

Despite the disagreement, MCWD said it remains open to talks with the City Council to improve service reliability and address public concerns, as recovery efforts from Typhoon Tino continue across Cebu City.(TGP)