Metro Manila water tariffs to rise in 2025

Water rates in the National Capital Region will increase next year, with consumers seeing a hike of at least P2.87 in their monthly bills, according to the Metropolitan Waterworks and Sewerage System (MWSS) Regulatory Office.

MWSS chief regulator Patrick Ty said that beginning in January, low-income lifeline customers of Manila Water, or those consuming 10 cubic meters (cu. m.) per month or less, would see their bills increase by P2.87 per month.

Regular Manila Water customers consuming 10 cu. m. per month will see an even more expensive monthly bill, which may go up by P24.68. Those consuming 20 cu. m. and 30 cu. m. will have to shell out P54.79 and P111.83 more a month, respectively.

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Customers of Maynilad Water Services Inc., meanwhile, will record higher adjustments, hitting P10.56 per month for consumers under the lifeline program.

Regular Maynilad customers consuming 10 cu. m. to 30 cu. m. per month will pay P20.08 to P155.32 more in settling their water bills.

According to Ty, the upward adjustments in the water rates of concessionaires Manila Water and Maynilad would price in higher tax and environmental charges, coupled with foreign currency differential adjustment (FCDA).

In September, the MWSS Board of Trustees gave its go signal to reinstate FCDA in water bills.

Appeal for understanding

FCDA is a quarterly reviewed tariff mechanism that allows Manila Water and Maynilad to recover losses or give back gains following movements in the value of the peso against foreign currencies. The water providers have to settle foreign currency-dominated loans that are used to finance expansion and enhancement involving their water and sewerage services.

“We monitor their capex (capital expenditures) spending [if] they are actually spending the necessary capex for the rate rebasing. Before we allow them to increase their tariff, we will check the actual spending, not just their target,” Ty said in a briefing.

The official also asked for consumers’ understanding, saying the upward movements in rates were necessary to support the plans of water providers to expand and improve their services and infrastructure.

Both Maynilad and Manila Water have committed to invest up to P344 billion in infrastructure projects from 2023 to 2027.