Setting Tariffs, Rates and Other Charges.
Section 8
SEC. 8. Setting Tariffs, Rates and Other Charges. – The Regulatory Office, with the approval of the MWSS Board of Trustees under the Concession Agreement, shall establish tariffs, rates and other charges which are fair and reasonable, and ensure economic viability and a fair return on investments. Tariffs, rates and charges shall be based on and consistent with a rate-setting methodology that the Regulatory Office shall, after due consultation with stakeholders, define and publish, taking into account the following, among others: (a) Reasonable and prudent capital and recurrent, efficient and prudent costs of providing the service including a reasonable rate of return on capital; (b) Efficiency of the service; (c) Incentives for enhancement of efficiency which shall not exceed the limitations applicable to public utilities; (d) Willingness to pay off the customers/consumers; (e) Equity considerations; (f) Administrative simplicity; (g) Methodology provided under the Concession Agreement; and (h) Compliance with obligations as set out under pertinent laws, jurisprudence and the Concession Agreement. Tariffs, rates and charges set by the Regulatory Office, as approved by the MWSS Board of Trustees under the Concession Agreement, shall be presumed valid and reasonable, unless declared otherwise in a proper administrative or judicial proceeding.