Metro Manila water rates will see mixed movements starting next month due to foreign currency differential adjustments (FCDA), according to the Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO).
FCDA is the tariff mechanism granted to utility companies allowing them to recover losses or give back gains arising from the fluctuating movements of the peso against other currencies. Concessionaires pay for loans and fees contracted in foreign currencies.
Maynilad Water Services’ rates will go down while Manila Water Co.’s will go up.
Maynilad will implement an FCDA of negative 0.41 percent of its 2021 average basic charge of P36.24 per cubic meter (cu. m.) or negative P0.15 per cu. m.
This adjustment will result to a downward adjustment of P0.01 per cu. m. compared to the previous FCDA of negative P0.14 per cu. m.
For customers consuming an average of 10 cu.m. per month or less, the adjustment will translate to a decrease of P0.08 in their monthly water bill. Those consuming 20 cu. m. per month will see a downward adjustment of P0.10 while those consuming 30 cu.m. per month will have P0.20 less charge in their monthly bill.
Meanwhile, for Manila Water customers consuming an average of 10 cu.m. per month or less, the adjustment will translate to an increase of P0.27 in their monthly water bill.
Those consuming 20 cu. m. per month will see their monthly bill going up by P0.60, while those consuming 30 cu.m. per month will have P1.22 higher charge in their monthly bill.
The company will implement an FCDA of 0.84 percent of its average basic charge of P28.52 per cu. m. or P0.24 per cu. m.
This is an upward adjustment of P0.05 per cu. m. compared to the previous FCDA of P0.19 per cu. m.
In a virtual briefing yesterday, Patrick Ty, MWSS-RO chief regulator, said the rollback in Maynilad water rates was due to the peso’s appreciation against US dollar, the major denomination of the company’s loans that are due.
Manila Water’s rate increase was due to the appreciation of Japanese yen and euro against the peso.