Customers of Maynilad Water Services Inc. will experience lower water rates in the fourth quarter of the year due to foreign currency differential adjustments (FCDA), the Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO) said.
Manila Water Company Inc. voluntarily deferred its FCDA implementation upon the recommendation of the MWSS-RO since it will result in an upward tariff adjustment for its customers.
FCDA is the tariff mechanism granted to utility companies to allow recovery of losses or give back gains arising from the fluctuating movements of the peso against other currencies as concessionaires pays foreign-dominated fees as well as loans to fund projects that will improve service for its customers.
Maynilad will impose an FCDA of negative 0.55 percent of its 2021 average basic charge of P36.24 per cubic meter (cu. m.) or negative P0.20 per cu. m. It will result in a downward adjustment of P0.05 per cu. m. compared to the previous FCDA of negative P0.15 per cu. m.
For residential customers consuming an average of 10 cu.m. per month or less, the adjustment will translate to a decrease of P0.18 in their monthly water bill. Those consuming 20 cu. m. per month will see a downward adjustment of P0.69 while those consuming 30 cu.m. per month will have P1.40 less charge in their monthly bill.
In a statement, MWSS-RO chief regulator Patrick Ty said among the highlights of the revised concession agreements of both Maynilad and Manila Water Co. Inc. are the imposition of a tariff freeze until the end of the year and the removal of FCDA.
But the MWSS-RO said the implementation of the FCDA this quarter has been approved for Maynilad as the proposed downward tariff adjustment will be beneficial to the public. – Jed Macapagal
