METRO Pacific Iloilo Water (MPIW) will increase water rates beginning in November 2025 following the approval of new tariff rates by the Local Water Utilities Administration (LWUA).
The adjustment will be implemented in two tranches. The first tranche, effective in the November 2025 billing cycle, will raise the rate from P20 to P25.20 per cubic meter, an increase of P5.20.
The second tranche, which will take effect in March 2026, will further increase the rate to P28.67 per cubic meter, or an additional P3.47.
MPIW Chief Operating Officer Angelo David C. Berba said the adjustment was originally scheduled for 2019 but was postponed due to socio-economic conditions, including the impact of the pandemic, rising fuel and electricity costs, and the considerations of local government stakeholders.
“For example, a household consuming between 0 to 10 cubic meters will now pay P252.02, compared to the current bill of P200,” Berba said.
The new rates will cover consumers in Iloilo City’s districts of Jaro, Molo, Mandurriao, La Paz, City Proper, and Arevalo, as well as the municipalities of Maasin, Cabatuan, San Miguel, Santa Barbara, Oton, Pavia, and Leganes.
The revised tariff follows a socialized pricing structure approved by LWUA, where higher consumption levels, particularly by industrial and commercial users, are charged progressively higher rates. This scheme is designed to subsidize low-income and low-consumption households, keeping residential rates affordable.
MPIW stressed that the adjustment reflects the rising costs of operating a water utility system heavily dependent on fuel and electricity. The company noted that despite absorbing much of these increases in recent years, an adjustment had become necessary.
“We have completely submitted all requirements to LWUA, and we are grateful to LWUA for its approval of our proposed rate adjustment,” said Metro Iloilo Water District (MIWD) General Manager Alfredo Tayo.
MPIW, a joint venture between MIWD and Metro Pacific Water Investments Corp., last year proposed an increase from the current basic rate of P20 per cubic meter to P29.19. MIWD acts as the regulator, while MPIW oversees operations such as system maintenance, expansion, and rehabilitation.
Tayo said that even with the rate adjustment, Iloilo consumers would continue to benefit from among the lowest water rates compared to similar urbanized areas in Western Visayas.
The new rate will be the first adjustment in six years despite significant operational cost increases. MPIW reported a 33 percent annual increase in bulk water prices and a 74 percent hike in material costs since 2019.
The adjustment will cover operational expenditures (Opex) such as salaries, electricity, and fuel. It will not fund capital expenditures (Capex) like infrastructure projects.
As part of the application process, MPIW conducted public consultations from May 27 to 30 in Iloilo City and the seven municipalities it serves. The company also plans to hold further public information sessions, media coverage, house-to-house campaigns, and presentations to local government units to ensure transparency with consumers.
MPIW said its commitment includes projects on leak detection and reduction, smart metering technologies, pipe rehabilitation and upgrades, and pressure management systems. These initiatives are aimed at reducing water loss, improving reliability, and providing customers with smarter and more efficient water service.
“Our goal is to deliver smart, sustainable, and equitable water service to our communities,” Berba added. (Leo Solinap/SunStar Philippines)