Tom defends water rate hike, nixes calls for suspension

Local

CEBU City Vice Mayor Tomas Osmeña has voiced opposition to calls to suspend the latest water rate hike.

He argued that higher tariffs are necessary to ensure supply and encourage investment in water infrastructure.

In his recent press conference, Osmeña said he supports the Metropolitan Cebu Water District’s (MCWD) rate hike, stressing that pricing must reflect the cost of ensuring water availability.

“This issue of the water rate, I am in favor of the water rate, as long as they produce the water,” Osmeña said when asked about proposals to halt the increase.

He maintained that suspending the hike would run counter to the basic economics of supply and demand, warning against government intervention in pricing outside of emergencies.

“Suspend water rate? Don’t fool around,” he said.

“All these price controls, to me, should apply only if there’s a crisis, like for 30 days or during a typhoon. But to make it a matter of policy, patay.”

Osmeña argued that increasing rates can incentivize investment, particularly in areas where the cost of delivering water is higher.

“If you are in an area where it’s more expensive, make it more expensive so investors will go there,” he said.

He added that the core issue is not pricing but availability.

He also noted that higher revenues should translate into improved service.

“The issue of water is availability. And if you have to make it available, you increase the water rate. We just have to see to it that they spend the money wisely,” he said.

Osmeña’s position contrasts with a resolution recently approved by the Cebu City Council calling for a temporary suspension of the increase.

Councilor Winston Pepito, who authored the measure, urged MCWD to defer the 10 percent rate hike that took effect on April 1, citing the financial strain on consumers.

In the resolution, Pepito emphasized that water is an essential service and warned that higher rates would affect households and small businesses already coping with economic pressures.

“A temporary postponement of the rate increase would provide much-needed relief to consumers and allow sufficient time for the public to adjust financially,” the resolution stated.

The council also called on MCWD to conduct broader consultations, assess the economic impact of the increase, and explore mitigating measures for consumers.

The water district earlier said the adjustment represents the final tranche of an increase authorized by the Local Water Utilities Administration (LWUA), aimed at funding infrastructure upgrades and covering rising operational costs, including bulk water purchases from private suppliers.

As of posting, MCWD has yet to issue an official response to the council’s request to suspend the rate hike.(TGP)