By Benjamin Cuaresma
MANILA — Maynilad Water Services Inc. has defended its decision to reclassify the water account of Smile Citihomes Condominium in Quezon City from residential to semi-business, saying the move complies with existing Metropolitan Waterworks and Sewerage System (MWSS) Regulatory Office rules and explains the property’s nearly ₱1.3 million disputed water bill.
In a statement issued Monday, Maynilad said the condominium’s account was officially reclassified in March 2026 following an on-site inspection that found commercial establishments operating within the residential complex.
According to the water concessionaire, Smile Citihomes consists not only of residential units but also a two-story mixed-use building that houses several small businesses, making the property subject to the semi-business rate classification under the MWSS Regulatory Office’s 2023 guidelines.
“The applicable rate classification is determined based on the property’s occupancy profile. Consistent with these MWSS rules, the account was reclassified from Residential to Semi-Business in March 2026,” the company said.
Under the MWSS rules, a semi-business classification applies to master-metered developments that are predominantly residential but are not used exclusively for residential purposes.
However, the condominium’s board of directors disputed the reclassification, arguing that only eight of the 1,397 occupied units—or approximately 0.57 percent of the entire complex—are commercial establishments.
In a letter dated March 15, the board said the businesses are confined to a separate two-story building that accommodates several small enterprises, including mini-grocery stores, eateries, and a water refilling station, while its upper floor houses the condominium administration office and a multipurpose hall.
“We could not find valid reason to justify the reclassification of our account into semi-business just because of the economic activities of the aforesaid units that will affect the whole of the 1,397 total member-consumers of Smile Citihomes,” the board said.
Residents were recently alarmed after Maynilad issued a notice of water service disconnection over ₱1,298,296.85 in alleged unpaid charges.
Maynilad clarified that the amount represents the accumulated difference between the residential rates paid by the condominium corporation and the applicable semi-business rates over the past three months.
The company said Smile Citihomes paid ₱331,983.25 in March, ₱342,835.85 in April, ₱335,362.11 in May, and ₱342,000 in June, but these payments were based on the previous residential classification.
As a master-metered development, Smile Citihomes has only one water service connection with Maynilad. Water is distributed to individual residential units by the condominium administration, which also collects payments from residents.
The condominium corporation earlier said it had questioned the reclassification before the MWSS Regulatory Office and secured a hold order preventing the disconnection of its water service while the dispute remains under review.
Maynilad, however, maintained that it properly notified the condominium of the change through a Notice of Rate Code Reclassification issued on March 4, 2026, before implementing the new billing classification. It added that it had also discussed the available billing options with the condominium corporation under existing MWSS regulations.
The water concessionaire said it remains committed to working with the homeowners association to address its concerns while ensuring compliance with the applicable MWSS billing policies.
ia/xf
