Water rate hike looms

    172
    Forex. The water concessionaires are implementing the adjustments that were deferred last quarter.
    Forex. The water concessionaires are implementing the adjustments that were deferred last quarter.

    Water rates are poised to go up this month after the Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO) approved the implementation of the deferred hikes in the previous quarter.

    MWSS-RO said Maynilad Water Services Inc. and Manila Water Company Inc. are implementing water rate hikes due to changes in the foreign currency differential adjustments (FCDA) and other charges.

    FCDA is the tariff mechanism granted to utility companies to allow it to recover losses or give back gains arising from the fluctuating movements of the peso against other currencies as the concessionaires pays foreign-dominated fees as well as loans to fund projects that will improve service for its customers.

    Last June, the MWSS’ board of trustees deferred the water rate adjustments brought by changes on the FCDA for the third quarter due to the pending leadership change in the agency at the time.

    Beginning October 13, Maynilad customers consuming an average of 10 cubic meters (cu.m.) per month or less, will pay P0.09 more in their monthly water bill. Those consuming 20 cu. m. per month will see an upward adjustment of P0.34, while those consuming 30 cu.m. per month will pay P0.70 more in their monthly bill.

    Maynilad will effect an FCDA of negative 0.35 percent of its 2019 average basic charge of P36.24 per cubic meter (cu. m.) or negative P0.13 per cu. m., an increase of P0.02 per cu. m. compared to the third quarter 2019 FCDA of negative P0.15 per cu. m.

    For Manila Water, customers consuming an average of 10 cu.m. per month or less, the adjustment will translate to an increase of P0.93 in their monthly water bill. Those consuming 20 cu. m. per month’s monthly bill will go up by P2.06, while those consuming 30 cu.m. per month will have an additional P4.20 charge in their monthly bill.

    Manila Water will implement an FCDA of 2.43 percent of its average basic charge of P28.52 per cu. m. or P0.69 per cu. m. It is an upward adjustment of P0.17 per cu. m. compared to the third quarter 2019 FCDA of P0.52 per cu. m.

    Maynilad is the concessionaire for the west zone of the Greater Manila Area, composed of the cities of Manila, Quezon City, Makati, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon; the cities of Cavite, Bacoor and Imus and the towns of Kawit, Noveleta and Rosario that are all in Cavite.

    Manila Water is the east zone concessionaire serving customers in Makati, Pasig, Pateros, Marikina, Mandaluyong, San Juan, Taguig, some parts of Quezon City and Manila; and several towns in Rizal province that include Taytay, Teresa, Angono, Antipolo, Baras, Binangonan, Cainta, San Mateo and Rodriguez.