Maynilad confirms QC condo no longer under residential rate

Barangay Kaligayahan Captain Alfredo “Freddy” Roxas (left) appeals for calm as alarmed residents of Smile Citihomes Condominium in Quezon City gather outside the administration building to demand answers over Maynilad’s notice of water disconnection due to unpaid bills.

MANILA, Philippines — Maynilad Water Services Inc. has confirmed it reclassified Smile Citihomes Condominium’s water account from residential to semi-business in March, resulting in higher water bills for the Quezon City residential complex.

In a statement sent to INQUIRER.net, Maynilad said the reclassification complied with the Metropolitan Waterworks and Sewerage System (MWSS) Regulatory Office’s 2023 rules governing bulk-metered residential developments.

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Maynilad, in an earlier letter to the condominium’s board of directors, said an on-site inspection found that Smile Citihomes also has a two-story mixed-use building with small businesses on the ground floor.

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The company said the commercial activity warranted the account’s reclassification 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,” Maynilad said.

Source: MWSS Regulatory Office

However, the condominium’s board of directors, in a March 15 letter to Maynilad, argued that only eight of the 1,397 occupied units in the 23-building complex are classified as commercial.

The board said the commercial units are located in a separate two-story building that houses the eight small businesses, including mini-grocery stores, eateries, and a water refilling station. The building’s second floor is occupied by the condominium administration office and a multipurpose hall.

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“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.

Under the MWSS Regulatory Office’s 2023 rules, the semi-business classification applies to master-metered properties that are at least 50 percent residential but not purely residential. Smile Citihomes’ eight commercial establishments make up only 0.57 percent of the condominium complex’s 1,397 occupied units.

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RELATED STORY: QC condo residents alarmed over Maynilad disconnection notice

Maynilad, meanwhile, said the condominium’s approximately P1.3 million outstanding balance represents the accumulated unpaid portion of its account over the past three months because payments continued to be made using the residential rate instead of the applicable semi-business rate.

According to the company, Smile Citihomes paid P331,983.25 in March, P342,835.85 in April, P335,362.11 in May, and P342,000 in June.

Maynilad issued the statement after residents of Smile Citihomes Condominium in Barangay Kaligayahan, Quezon City, questioned a disconnection notice over unpaid water bills totaling P1,298,296.85 and sought an explanation from the condominium’s board of directors.

As a condominium development, Smile Citihomes has a single water service connection with Maynilad. The utility supplies water through one main connection, while the condominium administration distributes water to individual units and collects payments from residents.

The condominium corporation earlier said the higher billings resulted from Maynilad’s unilateral reclassification of the condominium’s account and that it had questioned the move before the MWSS Regulatory Office.

It also said it had secured a hold order from the MWSS that prevents the disconnection of its water service while the dispute is under review.

Maynilad said it issued a Notice of Rate Code Reclassification to Smile Citihomes on March 4, 2026, before implementing the change. It added that it also discussed with the condominium corporation the billing options available under the applicable MWSS rules.

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The water concessionaire said it remains committed to working with the homeowners association to address its concerns and explain the applicable MWSS billing rules.