Manila Water Co. rates to drop, Maynilad rates to go up in July
MANILA, Philippines — Customers of the Manila Water Company Inc. will pay less for their consumption in July while those of Maynilad Water Service Inc. will pay more, both due to adjustments in the foreign exchange component of the concessionaires’ billings.
According to the Ayala-led Manila Water’s disclosure to the Philippine Stock Exchange on Monday, its customers will pay an average of 54 centavos less per cubic meter mainly due to the depreciation of the Japanese yen against the peso.
Lifeline customers of Manila Water — households that consume 10 cubic meters or less a month — are not affected. However, the average household that uses up 30 cubic meters monthly will see a reduction of P9.84 in their bill.
Meanwhile, Maynilad’s water charges will “slightly increase” by an average of 17 centavos per cubic meter due to the weakening of the peso against other currencies, according to the company statement.
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 appear in their August bills.
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 shooting for an increase of P8.58.
The Metropolitan Waterworks and Sewerage System Regulatory Office intends to wrap up the evaluation of the proposals within this month and hopes to publish new approved basic rates as early as the first week of July.
The MWSS RO has reiterated that a hike on basic charges is not a given and that, under the rate rebasing process, a rate reduction is always a possibility.
