Implementing Rules and Regulations in the Billing of Semi-Business (Residential B) Customers

March 31, 2008

MWSS IRR NO. 03-08

IMPLEMENTING RULES AND REGULATIONS IN THE BILLING OF SEMI-BUSINESS (RESIDENTIAL B) CUSTOMERS

Prefatory Statement

Pursuant to the recommendation of the MWSS Regulatory Office (RO) in its Resolution No. 07-015-CA dated November 8, 2007, as approved by the MWSS Board of Trustees (BOT) under Resolution No. 2007-255 dated 22 November 2007, as amended by RO Resolution No. 08-009-CA dated 24 March 2008, approved and confirmed by BOT Resolution No. 2008-046, dated 27 March 2008, the following Implementing Rules and Regulations are hereby adopted and promulgated:

RULE I

General Provisions

SECTION 1. Title. — This Rule shall be known and cited as the "Implementing Rules and Regulations (IRR) in the Billing of Semi-Business (Residential B) customers".

SECTION 2. Policy. — It is the policy of the MWSS to set uniform and reasonable charges applicable to both Concessionaires, Manila Water Company, Inc., (MWCI) and Maynilad Water Services, Inc., (MWSI). For this purpose, the MWSS BOT/RO passed the said resolutions prescribing for the adoption of a billing scheme whereby Semi-Business (Residential B) customers shall be billed for Residential Rate for the first ten (10) cubic meters of consumption in a given billing period and any consumption in excess thereof, shall be charged and billed at Semi-Business (Residential B) rate.

SECTION 3. Coverage. — This IRR shall cover all standard water service connections for both Concessionaires classified under the Semi-Business (Residential B). cEaCTS

SECTION 4. Definitions. — All defined terms and phrases in the concession Agreement (CA) related herewith are hereby incorporated in this IRR, particularly the following:

a. Semi-Business (Residential B) Customers shall mean those engaged in small business whose activity does not use water as an indispensable and/or fundamental part of their activity; and

b. Semi-Business (Residential B) Rate is approximately equal to the weighted average rate of residential and commercial units.

RULE II

Rules in the Billing of Customers Under Semi-Business (Residential B) Rate

SECTION 1. Guidelines. — Customers classified under the Semi-Business (Residential B) Rate shall be billed in accordance with the following:

a. The first ten (10) cubic meter of water consumed shall be billed at Residential Rate;

b. The excess of the ten (10) cubic meter consumption shall be billed at Semi-Business (Residential B) Rate; and

c. Other charges under the tariff structure shall continue to form part of the itemized bill.

SECTION 2. Implementation. — In the event of any problem/issue arising from the

Implementation of this IRR, the following

measures and procedures shall be followed:

a. The Concessionaire shall decide on the appropriate action and resolution of disputed issues in accordance with the CA provisions and the existing policies of MWSS.

b. Regulatory matters/issues shall be coordinated with and resolved by the MWSS RO and the MWSS BOT, and

c. This IRR shall be liberally interpreted to assist the consumer or the public in obtaining a just, expeditious and inexpensive resolution and/or settlement of complaints. In case of doubt in the interpretation thereof, the same shall be resolved in favor of that interpretation which will give full force and effect to the policy set forth in Rule 1 Sec. 2 hereof. cISAHT

RULE III

Repeal/Effectivity Clause

SECTION 1. Amendment, Modification and/or Repeal. — The MWSS BOT has the power and authority to amend, modify and/or repeal any provision of this IRR through the following steps:

a. The Technical Working Group (TWG), composed of representatives of the two (2) Concessionaires, MWSS Corporate Office (CO) and the RO, shall initiate, study and propose amendments, modification or repeal of any provision that may no longer be applicable; and

b. After due consideration of the merits of the proposal, the RO shall recommend for approval by the BOT the amendments/modifications/repeal being sought.

SECTION 2. Effectivity. — After approval by the MWSS BOT, this Implementing Rules and Regulations shall take effect fifteen (15) days after its publication.

APPROVED, March 31, 2008.

(SGD.) ALBERTO C. AGRAOIC, Chief Regulator

(SGD.) ESTRELLA T. DECENA-ZALDIVARDA for Administration and Legal Affairs

(SGD.) GOLDELIO G. RIVERADA for Financial Regulation Area

(SGD.) MELCHIOR I. ACOSTA, JR.DA for Customer Service Regulation Area

(SGD.) TIMOTEO C. VILLAROMANDA for Technical Regulation Area