Water firms cut rates in 2016

CUSTOMERS of Maynilad Water Services Inc. and Manila Water Co. Inc. can look forward to lower water bills starting in January.

The two concessionaires of the Manila Waterworks and Sewerage System (MWSS) are reducing their rates in the first quarter of 2016; Maynilad by at least 64 centavos and Manila Water by a minimum of P1.11.

For Maynilad, this is due to a seven-centavo-per-cubic-meter reduction in the foreign currency differential adjustment (FCDA) which is “0.21 percent of the newly approved average basic charge of P33.87 per cubic meter,” it said in a statement.

For Manila Water, the reduced rate was due to a 36-centavo reduction in average basic charge which will be P24.89 per cubic meter.

However, a resolution of the MWSS Board of Trustees said the company would also be implementing a 14.68-centavo increase in its FCDA, according to Jeric Sevilla Jr., head of the company’s corporate communications unit.

Maynilad said residential customers who use an average of 10 cubic meters or less monthly will enjoy a reduction of 64 centavos in their monthly bill. These so-called lifeline customers account for one-fifth of its customer base.

For customers who use 20 cubic meters, they will see a reduction of P2.43 while those who use 30 cubic meters will pay P5.04 less in January.

As for Manila Water, the same three groups of customers will see respective decreases of P1.11, P3.06 and P6.36 in their monthly bill.

Both companies announced the rate reductions as they sought arbitration procedures at the International Chamber of Commerce in connection with the MWSS’ ruling on their business proposals for the period 2013-2017.

Manila Water proposed a rate hike of P5.83 per cubic meter, which the MWSS countered with an order for a rate cut of P1.48 per cubic meter.

Maynilad, on the other hand, asked for a rate hike of P8.53 per cubic meter, but MWSS ordered a rate cut of P1.46 per cubic meter.

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