Customers of Manila Water Company Inc. will pay less for their water consumption starting next month while those of Maynilad Water Service Inc. will pay more due to adjustments in the foreign exchange component of the concessionaires’ billings.
Ayala-led Manila Water said Monday in a disclosure to the Philippine Stock Exchange that its customers would pay an average of 54 centavos less per cubic meter mainly due to the depreciation of the Japanese yen against the peso.
However, its lifeline customers—households that consume 10 cubic meters or less a month—will not be affected. On the other hand, the average household that uses 30 cubic meters monthly will see a reduction of P9.84 in their bill.
For its part, Maynilad said in a statement that its water charges would “slightly increase” by an average of 17 centavos per cubic meter due to the weakening of the peso against other currencies.
Households that enjoy the lifeline rates will have to pay 39 centavos more while the average household will pay an additional P3.01.
Rate changes for both concessionaires will take effect on July 3 and will be reflected in their August billing.
Under their concession agreement with the government, Manila Water and Maynilad must pass on to customers the gains or losses arising from the payment of foreign currency-denominated loans from banks and concession fees.
Rates adjustments related to foreign exchange changes do not affect the company’s revenues and net income.
Regulators are currently reviewing proposals from the two concessionaires which both want to raise their basic charges.
Manila Water wants an additional P5.83 per cubic meter while Maynilad is asking for an increase of P8.58.
The Metropolitan Waterworks and Sewerage System Regulatory Office intends to finish evaluating the proposals within this month and publish the new approved basic rates as early as the first week of July.