Cebu City Mayor Nestor Archival has issued a strong directive to the Metropolitan Cebu Water District (MCWD), urging the utility to ramp up efforts in reducing system water losses and improving service delivery. This call to action comes in the wake of a rate increase that took effect on Wednesday, April 1, 2026.
Rate Hike Details and Justification
The adjustment, which is part of a broader strategy to stabilize the utility's financial health, has raised the minimum residential charge for a one-half-inch meter to P259.16 from the previous P235.60 for the first 10 cubic meters. This represents an approximate 10-percent increase in costs for consumers.
Mayor Archival acknowledged the initial perception of the hike as burdensome, but provided context to soften the impact. "The increase is 10 percent and at first glance it looks quite heavy. But I clarified to them that the increase per day is more or less 70 centavos. If monthly, it's only around P23," he explained during a recent statement.
Final Phase of Approved Increases
This rate adjustment marks the culmination of a previously approved hike by the Local Water Utilities Administration (LWUA) in August 2025. The first tranche of this increase was implemented on October 1, 2025, setting the stage for this final phase.
Addressing Non-Revenue Water Losses
With the higher rates now in effect, Mayor Archival has demanded greater accountability from MCWD. He has specifically requested a detailed report on areas experiencing high water leaks and the establishment of a dedicated team to handle consumer complaints efficiently.
During a meeting with the MCWD board on March 31, Archival emphasized the critical need to tackle non-revenue water (NRW) issues. NRW refers to water lost through leaks, illegal connections, and system inefficiencies before it reaches end-users. He directed the utility to identify and prioritize areas with the highest water losses for immediate intervention, requiring a comprehensive report that outlines affected locations, proposed solutions, and implementation timelines.
Alarming NRW Statistics
Data from LWUA reveals a concerning trend: MCWD's NRW reached 36 percent in 2024, significantly exceeding the maximum allowable level of 20 percent. This high rate of loss has resulted in an estimated annual revenue shortfall of about P120 million, highlighting the urgency of the situation.
Financial Challenges and Consumer Impact
Mayor Archival also pointed out that MCWD has been operating at a financial disadvantage by selling water below cost. "While the agency sources water at prices reaching up to P65 per cubic meter, it is sold to consumers at only around P25," he noted. He added that the rate adjustment had been approved by LWUA some time ago but was only recently implemented to prevent further financial deterioration for the utility.
Call for Transparency and Communication
Despite his support for the necessary increase, Archival stressed the importance of transparency and improved public communication. He urged MCWD to provide a clear, data-driven explanation of the rate hike, including comparisons with other water districts to contextualize the changes for consumers.
Furthermore, he recommended the creation of a specialized team to manage consumer complaints and inquiries, equipped with a tracking system to ensure that all concerns are properly documented and addressed in a timely manner.
Preparations for Dry Season Challenges
Looking ahead, Mayor Archival called for enhanced preparations for the upcoming dry season. He suggested practical measures such as deploying water tankers to upland communities and establishing common water access points in densely populated areas during supply interruptions to mitigate potential hardships.
MCWD's Response and Future Plans
MCWD has previously stated that the rate increase is part of ongoing efforts to recover costs and improve its financial standing. The utility continues to grapple with high sourcing expenses and significant system losses. In response, MCWD is implementing various measures aimed at reducing reliance on expensive bulk water suppliers, expanding groundwater sources, and addressing the persistent issue of non-revenue water to ensure long-term sustainability and better service for Cebu residents.
