The Metropolitan Cebu Water District (MCWD) has formally defended its ongoing practice of collecting minimum water charges from households, even those with zero recorded consumption. The utility stated that these fees are mandated by law and are essential for maintaining its water distribution system's operations.
Legal and Operational Justification for Fees
In a statement released on Monday, January 12, 2026, the MCWD responded to concerns raised by Cebu City Councilor Harold Kendrick Go. The agency clarified that the minimum charge is not a payment for water used but a service fee. According to MCWD, between 70 to 80 percent of a water district's expenses are classified as fixed costs.
These unavoidable expenses include debt payments for infrastructure, electricity for water pumps, pipeline maintenance, and employee salaries. The utility emphasized that these are costs it must pay regardless of whether or not water is consumed by individual households.
Financial Independence and National Standards
MCWD further explained that water districts are Government-Owned and Controlled Corporations (GOCCs) created under Presidential Decree No. 198. Unlike local government units, they do not receive regular subsidies from the national government and must rely solely on collection revenues to fund their operations.
The utility pointed to the Water Rates Manual from the Local Water Utilities Administration (LWUA), which mandates the collection of minimum charges to recover these fixed costs. Suspending these charges for homes with no consumption would violate national pricing standards and could weaken MCWD's financial stability.
Affordability and Path Forward
MCWD assured the public that the minimum charge for residential connections is regulated to ensure affordability. They claim it does not exceed five percent of the average income of low-income families in their service area, following LWUA guidelines.
This defense comes after Councilor Go filed a resolution urging MCWD to review its billing policy. He acted on complaints from residents charged minimum fees, franchise taxes, and fixed charges despite having no water flowing from their taps.
While acknowledging public frustration over water interruptions, MCWD argued that the solution lies in greater infrastructure investment, finding additional water sources, and improving pressure management—not in removing the minimum charges. The utility expressed readiness to dialogue with Councilor Go's office to find ways to improve service, which they identify as the root cause of consumer complaints.
