Manila Water rates down, Maynilad rates up

MANILA, Philippines, March 14 ------ Customers of Manila Water Co. Inc. will get lower bills while consumers of Maynilad Water Services Inc. should brace for additional charges starting next month. The Metropolitan Waterworks and Sewerage System-Regulatory Office said the MWSS Board of Trustees has approved the foreign currency differential adjustment (FCDA) for both concessionaires. MWSS approved Maynilad’s increase for the second quarter equivalent to P0.05 per cubic meter, while that of Manila Water’s is a decrease of P0.21 per cu.m. of its basic charge.

This means that Manila Water customers who consume up to 10 cu.m. per month will have a decrease of P1.11 while those consuming an average of 20 cu.m. would have a rate cut of P2.46. Customers using 30 cu.m. would be affected by the downward adjustment of as much as P5.02 per month. Meanwhile, Maynilad residential customers consuming an average of 10 cu.m. or less every month would have to pay an additional P0.18 per month while those consuming 20 cu.m. would have a P0.69 increase in their water bills.

Those using more than 30 cu.m. would experience an increase of P1.40 per month. Adjusted rates for both Maynilad and Manila Water will be effective starting April 1. During the first quarter, the MWSS-RO asked both concessionaires to defer the FCDA implementation at the height of President Duterte’s tongue lashing against the water providers. FCDA is the tariff mechanism granted to utility companies to allow them to recover losses or give back gains arising from the fluctuating movements of the peso against other currencies as the concessionaires pay foreign-dominated fees as well as loans to fund projects that will improve service for their customers.

Gains and losses can arise from the payment of concession loans and foreign currency-denominated debt whose proceeds are used to improve services. Maynilad is the largest private water concessionaire in the country in terms of customer base. It serves the areas of Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, Malabon and certain portions of Manila, Quezon City, Makati and Cavite. Manila Water, on the other hand, caters to the East Zone that encompasses parts of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, most parts of Quezon City, portions of Manila, as well as several towns in Rizal.