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Cebu water district defends minimum fees despite zero consumption complaints

Residents demand fairness as MCWD stands firm on charges for zero water use. Can fixed costs and consumer trust ever align? The debate exposes the tension between affordability and the harsh math of running a self-funded utility.

The image shows an aerial view of a small town with a river running through it, surrounded by...
The image shows an aerial view of a small town with a river running through it, surrounded by trees, plants, grass, and houses. In the background, there is a tower and the sky is filled with clouds. This image is representative of the development of a water treatment plant in the Philippines.

Cebu water district defends minimum fees despite zero consumption complaints

Cebu City Councilor Harold Kendrick Go has called on the Metro Cebu Water District (MCWD) to review its billing policy after residents complained about minimum water fees—even when no water was consumed. The water district has responded by defending the charges as necessary for maintaining essential services.

MCWD, a government-owned corporation, operates without national subsidies and relies on these fees to cover fixed costs like loans, electricity, and staff salaries.

The issue came to light after residents raised concerns over being billed for water they did not use. Councilor Go filed a resolution urging MCWD to reassess its policy, arguing that charging for zero consumption was unfair.

MCWD acknowledged that water interruptions were unacceptable but warned that removing minimum charges would weaken its ability to fix supply problems. The district explained that 70 to 80 percent of its expenses are fixed, including infrastructure upkeep and personnel wages. These costs remain even when water supply is disrupted.

Under the Local Water Utilities Administration (LWUA) Water Rates Manual, minimum charges are legally required to recover fixed operating expenses. The fees are also regulated to ensure affordability, capped at five percent of the average income of low-income households. MCWD, as a self-funded entity, must generate its own revenue since it does not receive regular government subsidies.

Despite the controversy, MCWD has expressed willingness to discuss service improvements with Go’s office. The district emphasised that the charges are necessary to keep the water system running and maintain long-term reliability.

The minimum water charges will remain in place for now, as they are legally mandated and essential for covering fixed costs. MCWD continues to seek solutions to improve service while balancing financial sustainability. Further discussions with local officials may explore ways to address consumer concerns without compromising operations.

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