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| Water Rates Manual | | ||
Chapter
8
Sec. 63 of PD 198, as amended. "The rates or charges established by such local district, after hearing shall have been conducted for the purpose, shall be subject to review by the Administration to establish compliance with the above-stated provisions." Sec. 5 of LOI 700. "The water district concerned shall conduct public hearings prior to any proposed increase in water rates." Sec. 3 of LOI 744. "The Local Water Utilities Administration and each water district shall prepare a public education program which shall concentrate on the need and methods for water conservation, water rates, water facilities requirements and need for financing, and other related aspects of water district operations. They shall, in addition, prepare a comprehensive program and system of public consultation, both formally in hearings and informally through an education program, when considering increases in water rates, particularly at the time when water districts initiate operation." 2. INTRODUCTION A public hearing in the context of this subject means a forum or a medium of public discussion or consultation between the water district and its constituency, the primary purpose of which is to inform the latter about a proposed water-rate increase and the justifications appertaining thereto. For the concessionaires and the general public, this undertaking serves as a venue for airing their opinions, criticisms and counter suggestions to the issues at hand. A public hearing for any proposed water-rate increase may be conducted in the following instances: a. Presentation of initial metered rates, with or without project. b. Presentation of subsequent rate increase in connection with proposed project implementation, and/or for reason of increase in operational costs. c. Presentation of a series of committed rate increases brought about by loan restructuring agreements with LWUA. d. For special cases, which includes the presentation of cost-adjustment rate formulas. The activities required in the conduct of public hearings are grouped into three stages, namely: pre-public hearing stage, public hearing stage, and post-public hearing stage. 3. PRE-PUBLIC HEARING STAGE All proposals for rate increase shall be first submitted to LWUA for advice and consultation. The proposal shall be limited to water rate increases within the next five (5) years but not more than three (3) step increases per public hearing. The rest of the projected water rate increases shall be formally presented in later public hearings. All projected series of water rate increases as presented during a Project Presentation are covered by the aforesaid provision. If the said proposal is found to be in conformance with existing guidelines and legal requirements (Sec. 37 of PD 198 as amended and LOI 700), the District shall proceed with the necessary preparations. Prior to the public hearing, the district must undertake an intensive public information program in the areas directly affected. Broadcast media may be harnessed to ensure wide dissemination of the district's programs and to enlist public support for the rate increase. The print media may likewise be harnessed in cities or urbanized towns where there are local newspapers. The appropriate dialogues with local leaders, through barangayan or community assembly, may also be undertaken. Public information programs. It is recommended that public information projects proceed on the basis of four steps: a. Research, to determine attitudes and opinions, can include mail questionnaires, personal and telephone interviews, focus groups, and other methods. b. Planning, to identify target audiences as well as decide the messages to be conveyed, and the media through which to deliver them. The target audiences include customers and other governmental units. The messages include:
The media include:
c. Implementation, carrying out the plan. d. Evaluation, throughout the program so that adjustments can be made. The public also provide the ultimate evaluation of the district's efforts. The issuance of notices for public hearing must conform with the following requirements: a. Notices are to be disseminated to the existing and prospective concessionaires, opinion leaders, and local officials at least 15 days prior to the schedule thereof. Each notice contains the following informations:
b. Notices are to be posted in conspicuous public places, at least seven (7) days before the hearing if the district covers one municipality/city and at least 15 days when the district covers two or more municipalities/cities. 4. PUBLIC HEARING STAGE The district is responsible for the conduct of the public hearing program. The time and the venue may be such to ensure the best attendance of concessionaires. The program must allocate sufficient time for the presentation of justifications of the rate increase and accommodate comments and counter proposals, if any. In all public hearings, at least a LWUA representative must be present to provide factual information, closely observe the proceedings, and assess whether the public generally accepted the water rates proposal. The members of the district Board may also be present to answer possible questions appertaining to their functions. Where the district comprises just one city/municipality but covering several barangays; where the service are covers a wide territorial jurisdiction; or when the magnitude of increase is significant, the district may resort to multiple presentation through different barangays. Where the district service area covers more than one city/municipality, public hearings must be conducted in each city/municipality covered. 5. POST PUBLIC-HEARING STAGE After the conduct of the public hearing, all documents necessary to support approval of the water-rate increase are to be submitted as soon as possible to facilitate the processing thereof within a reasonable time. The following documents are to be submitted by the water district to LWUA together with the water-rate increase:
The LWUA representative must submit to the Administrator, a report containing the following informations:
6. OPPOSITION TO NEW RATES In some cases, advocates against water-rate increase resort to court action, seeking court injunctions to stop the enforcement of new rates. In such event, the district is well advised to be knowledgeable of administrative requirements for rates implementation which consist of the following:
After LWUA's confirmation, the new rates are deemed effective and enforceable seven days after public posting in the district. Should any complaint against these rates arise, such complaint should be filed within three (3) days after posting with the National Water Resources Board (NWRB). Said office is given 30 days within which to take action, which action if unacceptable to complainants may be elevated to the Office of the President. In case, therefore, of any court proceeding, the district must consider the following aspects:
The
chances of the district in winning court cases are greater provided it has taken
all the proper steps in the formulation and adoption of its water rates. Public hearing remains valid if the level of rates as presented in such hearing is the same as that being submitted to LWUA for review and approval. Otherwise, another public hearing must be conducted if the level of rates is higher than what was originally presented in said hearin | |||
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1.
LEGAL BASIS