14-year-old resolution increases water rate in Baguio 05-10-23

	NORDIS WEEKLY October 23, 2005
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14-year-old resolution increases water rate in Baguio
BAGUIOCITY (Oct. 17) — The Baguio Water District (BWD) increased its power cost adjustments by virtue of a public hearing on October 16,1991, some fourteen years ago, City Councilor Perlita Rondez noted in the regular session today where BWD General Manager Teresita de Guzman appeared before the Sangguniang Panlungsod (SP). De Guzman clarified with the city council that the increases in the water bill were due to a pass-on increase in power cost adjustments (PCA) billed by the Benguet Electric Cooperative (BENECO). She reiterated that the water utility’s operations are 98% electric power-driven that any increase in the consumption of water is an increase in the electricity consumption. “There is no other way to do it but to pass on the costs to water consumers,” de Guzman said, “in effect, increasing the cost.” She added that the operational expenses of BWD are highly dependent on water sales because it is not subsidized by the city government. According to de Guzman, the power bill at present reached as much as P11.7 million while in 2004, BENECO used to bill BWD only P5.5 million a month. “This affects BWD operations,” she said. She said Resolution No. 63-91 is not yet repealed and this gives BWD a legal basis for the increase. Said resolution reportedly stated that to ensure corporate survival, BWD must increase its rates by P4.89. This figure almost coincided with the alleged power cost adjustments that BWD now passes on to consumers, that Rondez said it is an implementation of a 14-year old resolution. BENECO, however, claimed the power cost adjustment it charged BWD is that only P3.88. De Guzman defended the P1 discrepancy saying there are other charges aside from the energy cost. BWD now charges an additional P2.06 per cubic meter of water. When asked how much it spends to produce and deliver one cubic meter of water, de Guzman said it spends P18.61. It charges P21.08 for residential consumers and P23 for commercial establishments. The Committee on Public Utilities, Transportation and Traffic Legislation chaired by Councilor Rocky Thomas Balisong will conduct further investigation on the issues surrounding the water rate increases. # Lyn V. Ramo for NORDIS
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	NORDIS WEEKLY October 23, 2005
Home \| To bottom	Previous \| Next
14-year-old resolution increases water rate in Baguio
BAGUIOCITY (Oct. 17) — The Baguio Water District (BWD) increased its power cost adjustments by virtue of a public hearing on October 16,1991, some fourteen years ago, City Councilor Perlita Rondez noted in the regular session today where BWD General Manager Teresita de Guzman appeared before the Sangguniang Panlungsod (SP). De Guzman clarified with the city council that the increases in the water bill were due to a pass-on increase in power cost adjustments (PCA) billed by the Benguet Electric Cooperative (BENECO). She reiterated that the water utility’s operations are 98% electric power-driven that any increase in the consumption of water is an increase in the electricity consumption. “There is no other way to do it but to pass on the costs to water consumers,” de Guzman said, “in effect, increasing the cost.” She added that the operational expenses of BWD are highly dependent on water sales because it is not subsidized by the city government. According to de Guzman, the power bill at present reached as much as P11.7 million while in 2004, BENECO used to bill BWD only P5.5 million a month. “This affects BWD operations,” she said. She said Resolution No. 63-91 is not yet repealed and this gives BWD a legal basis for the increase. Said resolution reportedly stated that to ensure corporate survival, BWD must increase its rates by P4.89. This figure almost coincided with the alleged power cost adjustments that BWD now passes on to consumers, that Rondez said it is an implementation of a 14-year old resolution. BENECO, however, claimed the power cost adjustment it charged BWD is that only P3.88. De Guzman defended the P1 discrepancy saying there are other charges aside from the energy cost. BWD now charges an additional P2.06 per cubic meter of water. When asked how much it spends to produce and deliver one cubic meter of water, de Guzman said it spends P18.61. It charges P21.08 for residential consumers and P23 for commercial establishments. The Committee on Public Utilities, Transportation and Traffic Legislation chaired by Councilor Rocky Thomas Balisong will conduct further investigation on the issues surrounding the water rate increases. # Lyn V. Ramo for NORDIS
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