MANILA, Philippines – Water rates in Metro Manila and other nearby provinces would increase after the Metropolitan Waterworks and Sewerage System (MWSS) Board of Trustees approved the 2019 fourth quarter Foreign Currency Differential Adjustment (FCDA) of the two concessionaires.
In a statement sent on Monday afternoon, the MWSS Regulatory Office (RO) said the base price of Manila Water Company Inc. (MWCI) — which currently stands at an average of P28.52 per cubic meter — will go up by 2.43 percent or P0.69 per cubic meter.
“The impact of the fourth quarter FCDA to MWCI residential customers consuming 10 cubic meters or less, except lifeline customers, are expected to have an increase on their monthly bills of Php0.93 per month,” MWSS-RO said.
“MWCI lifeline customers are exempt from the quarterly FCDA charges. Those consuming 20 cubic meters per month and 30 cubic meters per month, their monthly bill will go up by Php2.06 and Php4.20 respectively,” it added.
For Maynilad Water Services Inc. (MWSI), 0.35 percent of its average basic charge of P36.24 per cubic liter — or P0.13 per cubic meter — would be imposed.
“MWSI residential customers consuming 10 cubic meters or less are expected to see their monthly bills to go up by Php0.09; the monthly bills of those consuming 20 cubic meters per month and 30 cubic meters per month will increase by Php0.34 and Php0.70, respectively,” the office noted
According to the RO, the FCDA is a “mechanism to adjust the water rates as a result of the fluctuation in the foreign exchange rates”, because the debt service obligations of MWSS — which the concessionaires acquired under the concession agreement — are mostly denominated in foreign currencies.
“FCDA also covers the foreign currency denominated loans obtained by the Concessionaires. The FCDA is determined on a quarterly basis taking into account actual losses and collections to ensure there is no under or over recovery,” MWSS-RO explained.
The two water concessionaires are tasked to provide water service and treat waste water of residents, in place of MWSS. Manila Water covers the east concession zone which includes the cities of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig and Marikina.
Southeastern parts of Quezon City, and Sta. Ana and San Andres areas in Manila, along with several towns in Rizal like Antipolo, San Mateo, Rodriguez, Cainta, Taytay, Teresa, Angono, Baras, Binangonan, and Jala-jala also fall under Manila Water’s care.
The west zone area is being handled by Maynilad. Some areas under it are Manila, northern and western parts of Quezon City, western parts of Makati, Caloocan, Pasay, Valezuela, Navotas, Malabon, as well towns in Bulacan and Cavite.