16 September 2024

PRESS RELEASE

MWSS RO CONFIRMS TARIFF ADJUSTMENT ON CUSTOMERS’ WATER BILLS FOR THE 4TH QUARTER OF 2024

This is to inform the public that on 12 September 2024, the MWSS Board of Trustees (BOT) resolved to approve the recommendation of the MWSS Regulatory Office (RO) to implement the 2024 Fourth (4th) Quarter Foreign Currency Differential Adjustment (FCDA) effective 01 October 2024, based on its evaluation of the FCDA proposals of water concessionaires, Manila Water Company, Inc. and Maynilad Water Services, Inc. The MWSS RO confirms a tariff increase for Manila Water customers and a tariff decrease for Maynilad customers.

Section 9.8 of the Amended Revised Concession Agreements (RCA) between MWSS and both Manila Water and Maynilad stipulates that “more detailed guidelines on the determination and application of the FCDA to the Concessionaire Loans will be issued by the Regulatory Office, as assisted by the Department of Finance and as approved by the MWSS.” During a public consultation drive on 30 July 2024, the MWSS RO presented its draft FCDA Guidelines under the Amended RCA to customers of both Concessionaires, local government units within the East and West Concession Areas, media representatives, concerned public and private institutions, and other stakeholders for review and feedback. On 07 August 2024, the MWSS BOT issued a Resolution approving the FCDA Guidelines prepared by the MWSS RO, which became effective on 31 August 2024. On 02 September 2024, Manila Water and Maynilad submitted their respective FCDA petitions, which were subsequently validated and evaluated by the MWSS RO.

For the 4th Quarter of 2024, Manila Water, which provides water and wastewater services to the East Concession Area, will implement an upward FCDA of 2.03% of its 2024 Average Basic Charge of Php42.26 per cubic meter, or Php0.86 per cubic meter. Meanwhile, Maynilad, which serves the West Concession Area, will apply a downward FCDA of -0.62% of its 2024 Average Basic Charge of Php47.57 per cubic meter, or -Php0.29 per cubic meter.

The FCDA is a quarterly-reviewed tariff mechanism that allows Concessionaires to recover losses or give back gains arising from fluctuations in foreign exchange rates, as payments are made for foreign currency-denominated loans that are used to fund the expansion and improvement of water and sewerage services. It is a corrective mechanism formulated by the MWSS RO to avoid under-recovery or over-recovery caused by forex movements.

(sgd.)

PATRICK LESTER N. TY

Chief Regulator