Consumers of Manila Water Co. will pay P0.21 more in their monthly bills starting April 1, 2025, while Maynilad Water Services Inc. has deferred its rate increase, the Metropolitan Waterworks and Sewerage System-Regulatory Office announced on Thursday.
“Manila Water, which provides water and wastewater services to the East Concession area, will implement an upward FCDA of 1.39 percent of its 2025 average basic charge of P47.10 per cubic meter (cu. m.),” said Patrick Ty, the MWSS-RO chief regulator, in a briefing in Quezon City.
This should bring the rate to P0.65 per cu. m, from P0.61 per cu. m in the first quarter.
As a result, the company will implement a P0.04 increase in the monthly bills of Manila Water customers, starting April 1.
Manila Water’s residential customers consuming an average of 10 cu.m. per month or less, will pay P0.21 more monthly. Those consuming 20 cu. m. per month will pay P0.45 more, while those consuming 30 cu.m. per month will pay P0.90 more monthly.
The higher rate is due to the foreign currency differential adjustments (FCDA) for the second quarter, said Patrick Ty, the MWSS-RO chief regulator, in a briefing in Quezon City.
The FCDA is a tariff mechanism that gives water concessionaires, like Manila Water and Maynilad Water Services, the opportunity to recover losses or return the gains from fluctuations in foreign exchange rates, related to
their for foreign currency loans. Such loans are supposed to fund the expansion and improvement of water and wastewater services.
Manila Water’s low-income residential customers, categorized as enhanced lifeline customers with consumption volumes ranging from less than 10 cubic meters to 20 cubic meters per month, will not be charged more as they are exempted from the FCDA. Enhanced lifeline customers are of the government’s dole out system, the Pantawid Pamilyang Pilipino Program.
Ty said Manila Water’s FCDA adjustment was due to the slight weakening of the Philippine peso against the US dollar.
Manila Water will publish the FCDA rate with on March 15 or 16, or 15 days before the implementation of the water rate hike on April 1.
Ty, however, said West Zone concessionaire Maynilad decided to defer its FCDA adjustments for the second quarter of the year. That would have added 9 centavos to its customers’ monthly bills.
Maynilad will instead implement its rate increase in the third quarter by adding P0.09 to its 3rd quarter FCDA, he added.
Ty said Manila Water’s rate hike is a proactive way of implementing increases, as it reflects current economic conditions and prevents the piling up of adjustments in succeeding quarters.
“Meanwhile, Maynilad opted to defer its scheduled adjustment to mitigate the immediate financial pressure on consumers. This deferment will see the adjustment applied in the next quarter,” he added.
Ty clarified that all water rate reductions due to FCDA, should be implemented immediately and not deferred to later dates.
In a separate statement Maynilad said it evaluates different factors when putting in place FCDA adjustments, including foreign exchange movements and the impact on their loan obligations.
“While the mechanism allows for quarterly adjustments, we considered it prudent to maintain rate stability for this period. Moving forward, FCDA adjustments will continue to be applied as needed, based on prevailing conditions,” the company said.
The most recent water adjustment approved by the MWSS-RO for Maynilad and Manila Water was at the start of 2025, to reflect changes in tax rates, environmental charges and foreign currency adjustments.
Back then, the regulator allowed an increase of P10.56 in the monthly water bill of Maynilad’s low-income lifeline customers who consume 10 cu. m. or less on average per month.
Maynilad’s regular residential customers, using an average of 10 cu. m. per month or less, started paying P20.08 more. Those consuming 20 cu. m. began paying P75.89 more, while those consuming 30 cu.m. started paying P155.32 more in their monthly bills.
Manila Water’s lifeline customers consuming an average of 10 cu.m. or less per month, started paying P2.87 more monthly.
Its regular Manila Water customers who were consuming 10 cu. m. or less per month started paying P24.68 more, while those who consume 20 cu. m. per month started paying P54.79 more. Those consuming 30 cu.m. per month were charged P111.83 more in their monthly bills.
The MWSS-RO said all rate adjustments were approved after a thorough evaluation, especially the amounts of investments that water service providers were seeking to recover.
If water concessionaires would stop investing in water-related infrastructures, low-income households, especially those without storage tanks, would experience supply issues, said Ty.
Maynilad is the largest private water concessionaire in the Philippines in terms of customer base serving the cities of Manila, Quezon City, Makati, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon as well as the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario in Cavite Province.
Manila Water mainly serves customers in the Metro Manila particularly Makati, Pasig, Pateros, Marikina, Mandaluyong, San Juan, Taguig, some parts of Quezon City and Manila; and several towns in Rizal province like Taytay, Teresa, Angono, Antipolo, Baras, Binangonan, Cainta, San Mateo and Rodriguez.
