Maynilad rates to ease slightly in Q3

Customers of Maynilad Water Services Inc. will get a small relief on their bills for the July to September period after regulators approved adjustments related to foreign exchange movements.

In a briefing on Thursday, Metropolitan Waterworks and Sewerage System (MWSS) chief regulator Patrick Lester Ty said the board of trustees had cleared the implementation of the foreign currency differential adjustment (FCDA) for the third quarter.

The foreign currency differential adjustment (FCDA) is a quarterly-reviewed tariff mechanism that allows Manila Water and Maynilad Water Services Inc. to recover losses or give back gains following movements in the value of the peso against foreign currencies.

The water service providers have to settle foreign currency-denominated loans that are used to finance expansion and enhancement involving their water and sewerage services.

Based on the decision, Maynilad rates will fall by 12 centavos per cubic meter (cu.m).

This means that those consuming 10 cu.m or less will record a reduction of about 34 centavos. Customers with up to 20 cu.m and 30 cu.m consumption will realize a cut of P1.29 and P2.66, respectively.

The adjustment will not affect low-income households, who are under the enhanced lifeline program of Maynilad.

Meanwhile, Manila Water will have no rate adjustments for the quarter.

“For Manila Water, there’s no adjustment because it’s impractical to implement an increase of less than one centavo. So it will just be applied in the next quarter,” the official added.