Rebates to ‘hover around’ P500M
Credit to Author: TYRONE JASPER C. PIAD| Date: Mon, 22 Apr 2019 16:24:10 +0000
Rebates to be paid out by Ayala-led Manila Water Co. Inc. will be significantly higher than initially estimated, the company’s chief said on Monday.
“From P150 million, it will definitely add few more hundreds of millions in my estimate,” Manila Water President and CEO Ferdinand dela Cruz said at the sidelines of a stockholders’ meeting in Makati.
Asked if the rebates could total P500 million, he replied: “It will probably hover around that area but probably below that number.”
“I just don’t wanna give a specific number that will be quoted because the billings are not done,” dela Cruz continued.
The P150-million estimate was based on minimum consumption computations per household but the extent of last month’s supply disruption varied widely across the
firm’s service area, he explained, adding that Manila Water was also still finalizing its April billing.
In the wake of the shortage, the firm said it would be implementing a waiver to be reflected in customers’ April bills.
“The April bill reading is not over yet.There is still a balance,” dela Cruz said, adding that the bills are expected to be issued by the second week of May.
“There are barangays na mas matagal silang nawalan ng tubig … (that did not have water for a longer period of) seven days and up. For those set of customers, iwi-waive yung full bill nila (we will waive the full bill) for March consumption,” he added.
Manila Water Chief Finance Officer Ma. Cecilia Cruzabra said the rebates, along with capital expenditures to improve supply, would weigh on the firm’s 2019 revenues.
The company posted 6 percent growth in net income last year, to P6.5 billion, amid growing demand.
Manila Water said it had restored 99.8 percent of water supply in its East Zone concession, on average providing 20 hours of continuous daily water supply as of the moment.
The company services the cities of Mandaluyong, Marikina, Pasig, Pateros, San Juan, Taguig, Makati and parts of Quezon City and Manila. It also serves Antipolo City and the Rizal towns of Angono, Baras, Binangonan, Cainta, Cardona, Jala-Jala, Morong, Pililla, Rodriguez, Tanay, Taytay and San Mateo.
Full restoration is expected by end-May via additional supply from its Cardona plant, deep wells and contributions from West Zone concessionaire Maynilad Water Services Inc.
Manila Water saw its shares drop 1.25 percent or 30 centavos to P23.65 on Monday amid a 0.03-percent dip for the Philippine Stock Exchange index.
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