MWSS sees water rate hike by 2023 due to weaker peso

Metro Manila, September 30 ------ Consumers must brace for likely higher water bills beginning January 2023 as an effect of the Philippine peso’s depreciation against the US dollar, said the Metropolitan Waterworks and Sewerage System (MWSS).

MWSS Regulatory Office chief regulator Patrick Ty explained that the drop in the value of peso will have an effect on the rate rebasing effective next year. Rate rebasing is a periodic review done every five years to determine the maximum rates that water concessionaires Maynilad and Manila Water may charge for their services. “Lahat ng losses for foreign currency, it would be included during the rate rebasing that is ongoing right now, and that will have an effect on the rates this coming January 1, 2023,” Ty said in a media briefing.

He assured, however, that MWSS will try to minimize the rate hike or “at least spread out the increase” over the next five years to cushion the impact on customers. “We’re hoping na in the next few years ay mag-rerecover ang ating peso versus the dollar and other foreign currency, at ito ay ma-spread out at hindi po masyadong mabigat sa ating consumers,” he said. According to Ty, the expected hike has to do with the foreign currency differential adjustment (FCDA), a tariff mechanism that allows concessionaires to recover losses or refund gains from fluctuation in foreign exchange rates.

In November 2021, MWSS announced it will remove the FCDA from customers' water bills, but Ty clarified this revised concession agreement is not yet in effect. Instead of implementing the FCDA mechanism every quarter like in the past, however, Ty said changes based on the FCDA will just be included in the rate rebasing.

MWSS will hold a public information drive and a series of public consultations this October where the results of the rebasing will be announced, he added.

Source: cnnphilippines.com