Peso weakness triggers hike in water rates
Customers of Maynilad Water Services Inc. and Manila Water Co. Inc. can expect to pay higher rates per cubic meter (cu.m.) by 27 centavos and 28 centavos, respectively, starting Aug. 13.
In separate statements, the two concessionaires of the Metropolitan Waterworks and Sewerage System (MWSS) announced rate adjustments that the MWSS Regulatory Office approved for the third quarter of 2017.
For both cases, the increases are due to the latest changes to the foreign currency differential adjustment or FCDA, which is designed to allow the concessionaires to recover losses or give back gains resulting from the fluctuations in the value of the peso against other currencies.
Both companies are servicing foreign currency-denominated loans, the proceeds of which were used in the improvement and expansion of their services.
Maynilad said it also pays similarly denominated concession fees to the MWSS. Manila Water also pays for concession loans to and foreign currency-denominated borrowings of the MWSS.
“For the past several months, the Philippine peso continued to decline against the US dollar and other foreign currencies,” Manila Water said.
According to the Bangko Sentral ng Pilipinas, a US dollar was worth P50.54 as of July 28 compared to P50.19 last March 31.
Manila Water customers who use less than 10 cubic meters a month—the “lifeline” customers—will not feel the effect of the rate adjustment and will continue to pay P79.81 monthly.
Also, residential customers who use 10 cu.m. up to 20 cu.m. a month will pay P1.46 more at P133.99 from P135.53 previously.
Customers who use 30 cu.m. or more will pay an additional P6.61 at P614.80 from P608.19 previously.
For Maynilad customers, the price adjustments mean that a household that uses 10 cu.m. of water or less each month will see a 13-centavo increase in their bill.
Households that use 20 cubic meters a month will pay 48 centavos more, while those that use 30 cubic meters a month will pay an additional 99 centavos.
