Implementing Rules and Regulations in the Billing Scheme and Rate Classification for High-Rise and Other Multiple Dwellings

March 31, 2008

MWSS IRR NO. 02-08

IMPLEMENTING RULES AND REGULATIONS IN THE BILLING SCHEME AND RATE CLASSIFICATION FOR HIGH-RISE AND OTHER MULTIPLE DWELLINGS

Prefatory Statement

Pursuant to the recommendation of the MWSS Regulatory Office (MWSS RO) in its Resolution No. 07-014-CA dated November 8, 2007, as approved by the MWSS Board of Trustees (MWSS BOT) under Resolution No. 2007-254 dated 22 November 2007, the following Implementing Rules and Regulation 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 Scheme and Rate Classification for High Rise and Other Multiple Dwellings".

SECTION 2. Policy. — It is the policy of the MWSS to set reasonable charges which should be made applicable to both Concessionaires, Manila Water Company, Inc. and Maynilad Water Services, Inc. For this purpose, the MWSS BOT/RO passed the said resolutions to achieve a uniform treatment of customers and a standard Billing Scheme and Rate Classification for High-Rise and other Multiple Dwellings.

SECTION 3. Coverage. — This IRR shall be applied to the following building/dwelling/residence with the water service connection served by a master meter:

a. High-rise buildings;

b. Condominiums;

c. Multiple-dwellings with more than two (2) floors except for dwellings configured as single units having a maximum of three (3) floors, with a plumbing system that is separate and distinct from those of other units; and

d. Any multiple dwelling which has any of the following on-site installations: cEAHSC

i. Overhead water tanks; and

ii. Underground reservoirs/cisterns.

SECTION 4. Definitions. — All defined terms and phrases in the Concession Agreement (CA) related herewith are deemed incorporated in this IRR, in addition to the following:

a. High-Rise Buildings shall mean buildings with more than five (5) stories;

b. Condominiums shall mean buildings with several unit owners under one (1) common lot which is generally used for residential purposes;

c. Multiple Dwellings shall mean structures like tenements, BLISS and townhouses/apartments located in a compound;

d. Commencement Date shall mean the Concessionaire's take-over date for operation which is August 1, 1997;

e. Actual Average Consumption shall mean the actual total consumption registered in the Master Meter divided by the actual number of occupied units; and

f. Master Meter shall mean a large water meter which registers the consumption of the building and multiple dwellings and is used as a basis for billing the water consumption.

RULE II

Rules in Setting the Billing Scheme and Rate Classification

SECTION 1. Outstanding and Current Accounts. — All accounts, whether with previous MWSS contracts or contracts with the Concessionaires after the Commencement Date, shall be classified and billed according to the following guidelines:

a. An amendatory contract shall be entered into by and between the concerned Concessionaire and the account owner (building/dwelling owner/developer, or official of the homeowners association/unit owners/lessees) who are affected by this IRR. This contract will specify, among others, the description, rate classification and the billing scheme applicable; and EcDATH

b. The billing of the master meter shall be as follows:

Description	Rate Classification	Billing Scheme
Purely residential	Residential	Billing of master meter is based on the
(100%)		actual average consumption using
		the residential rate.
At least 75%	Semi-Business	Billing of master meter is based on the
residential occupancy		actual average consumption using
		semi-business rate (approximately
		equal to the weighted average rate of
		residential and commercial units).
Less than 75%	Commercial	Billing of master meter is based on the
residential occupancy		actual consumption using the
		commercial rate.

SECTION 2. Master Meter with Residential Rate Classification. — As specified in Section 1.b, Master Meters with Residential Rate Classification shall be billed in accordance with the following:

a. Master Meter shall be billed at the residential rate corresponding to the actual average consumption of all active units occupied and served. The actual average consumption is determined by dividing the total volume registered in the master meter by the total number of active units occupied and served. The occupancy level of these multiple buildings/dwelling/residences shall be periodically verified by the Concessionaire and such shall be used in determining the appropriate rate classification; and

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

SECTION 3. Master Meter with Semi-Business Rate Classification. — As specified in Section 1.b, Master Meter with Semi-Business Rate Classification shall be billed in accordance with the following:

a. Master meter shall be billed at the semi-business rate corresponding to the actual average consumption of all active units occupied and served. The actual average consumption is determined by dividing the total volume registered in the master meter by the total number of active units occupied and served. The occupancy level of these multiple buildings/dwellings/residences shall be periodically verified by the Concessionaire and such shall be used in determining the appropriate rate classification; and

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

SECTION 4. Master Meter with Commercial Rate Classification. — As specified in Section 1.b, Master Meter with Commercial Rate Classification shall be billed in accordance with the following: cCSTHA

a. Master meter shall be billed at the commercial rate corresponding to the actual consumption registered in the master meter; and

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

SECTION 5. 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.

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. ISCcAT

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

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

Published in the Official Gazette Vol. 104, No. 39, Page 6641 on September 29, 2008.