Customers of Maynilad Water Services Inc. and Manila Water Company Inc. will pay higher water rates this quarter, after the regulator allowed them to recover losses from a weaker peso against the US dollar.
MWSS said its board of trustees approved an average basic charge of P24.81 per cubic meter for Manila Water and a foreign currency differential adjustment of P0.69 per cubic meter this year, compared to a basic charge of P24.89 per cubic meter and FCDA of P0.25 per cubic meter last year.
“The adjustments in standard rates and FCDA result in an increase of P0.36 per cubic meter,” MWSS said.
This means that Manila Water customers who are consuming 10 cubic meters a month or less and not belonging to lifeline customers would see their monthly bills increase by P1.91. Those consuming 20 cubic meters per month will pay an additional P4.19, while those consuming 30 cubic meters a month will pay P8.60 more.
Meanwhile, MWSS approved a basic charge of P34.51 per cubic meter and FCDA of P0.24 per cubic meter for Maynilad in 2017.
The impact of FCDA on the monthly bills of Maynilad residential customers is an increase of P2.60 for those consuming 10 cubic meters a month or less; P9.76 for those consuming 20 cubic meters a month; and P20.09 for those consuming 30 cubic meters a month.
The 1997 concession agreements signed by MWSS and the two concessionaires provided that the standard rates for water and sewerage services should be adjusted each year effective Jan. 1. An amendment also provided FCDA as a tariff mechanism to recover or compensate for fluctuations in foreign exchange rates.
“Gains and losses can arise from payment of concession loans and foreign currency-denominated debt whose proceeds are used to improve services,” MWSS said.
