Water bills to rise due to currency adjustment
Customers of Manila Water Co. and Maynilad Water Services (Maynilad) will pay slightly more in the next three months due to an adjustment in the foreign exchange component of their water bills as a result of the weaker peso.
Ayala-led Manila Water disclosed that it would implement a foreign currency differential adjustment (FCDA) in the next three months starting Oct. 1.
For 10-cubic meter (cum) users, the impact will be 17 centavos per month and for 20-cum users, it will be 38 centavos.
The adjustment for Manila Water’s franchise area—equivalent to 5 centavos per cum—shall be effective from Oct. 1 to Dec. 31.
Maynilad said customers consuming an average of 10 cum per month or less will pay 36 centavos more in monthly water bills.
Those consuming 20 cum per month will see a monthly increase of P1.37, while those consuming 30 cum per month will pay an additional P2.80, Maynilad said.
The adjustment for Maynilad’s franchise area—equivalent to 53 centavos per cu.m. or 1.58 percent of the average basic charge of P33.60 per cu.m.—shall be effective from Oct. 1 to Dec. 31.
Maynilad said the increase in water tariff for its customers was due to an upward adjustment in the FCDA for the fourth quarter of 2015, following the depreciation of the peso.
The FCDA, adjusted quarterly, is a tariff mechanism granted to utility companies to allow them to recover losses or give back gains arising from fluctuations of the peso against other currencies.
This is because Maynilad pays foreign-dominated concession fees to the Metropolitan Waterworks and Sewerage System, as well as loans to fund projects to improve service for its customers.
Both Manila Water and Maynilad said the FCDA would have no impact on their respective net incomes.
Manila Water primarily serves the East Zone of Metro Manila which includes parts of Quezon City, Makati, Taguig, Pateros, Marikina, Pasig, San Juan, Mandaluyong, the southeast of Manila, and Rizal province.
Maynilad services the West Zone which covers parts of Manila, Pasay, Parañaque, Caloocan, Muntinlupa, Las Piñas, Valenzuela, and parts of Makati and Quezon City, including Navotas and Malabon. Its franchise area also covers Cavite City and Bacoor, Imus, Kawit, Noveleta and Rosario.
