Customers of Manila Water Co. Inc. will enjoy a relief in their monthly bills in the next three months while those of Maynilad Water Service Inc. will see a slight increase due to the quarterly foreign currency differential adjustment (FCDA).
The FCDA is a rate-setting mechanism that enables the two concessionaires of the Metropolitan Waterworks and Sewerage System (MWSS) to recover from or give back to customers funds lost or gained due to fluctuations in the value of the peso against foreign currencies.
Both Manila Water and Maynilad may enjoy gains or sustain losses as they service concession loans—used to improve their services and operations—that are denominated in foreign currencies.
According to the MWSS Regulatory Office, this year’s second-quarter FCDA means that Manila Water will adjust for a gain of 48 centavos per cubic meter, which is 21 centavos less than the 69 centavos that was given back to customers in the first quarter of 2020.
This latest FCDA will result—for a typical residential customer billed for 20 cubic meters—in a reduction of P4.26 in the monthly bill of Manila Water and an increase of 69 centavos in the bill of Maynilad.
Also, for Manila Water, customers billed for 10 cubic meters or less—except for “lifeline customers” who are exempted from the FCDA—will see their bills decrease by P1.11 from April to June.
Manila Water customers billed for 30 cubic meters, meanwhile, will enjoy a decrease of P5.02.
Further, MWSS said the latest FCDA meant that Maynilad would adjust its rate for a forex loss of eight centavos per cubic meter, which was five centavos less than the 13 centavos that was recovered from customers in the previous quarter.
Maynilad customers billed for 10 cubic meters or less will see their bills increase by 18 centavos in the next three months. Customers billed for 30 cubic meters will see an increase of P1.40 in their bills.