The Metropolitan Waterworks and Sewerage System (MWSS) approved the third quarter foreign currency differential adjustment (FCDA) for Manila Water Company, Inc. and Maynilad Water Services, Inc.
On 9 June 2016, MWSS Board of Trustees issued resolutions approving and confirming the recommendation of the MWSS Regulatory Office to implement the third quarter FCDA effective 1 July 2016.
Manila Water
Manila Water will implement an FCDA of 1.02% of its 2016 Average Basic Charge of Php24.89 per cubic meter or Php0.25 per cubic meter. This is a downward adjustment of Php0.01 per cubic meter compared to the 2nd quarter 2016 FCDA of Php0.26 per cubic meter.
The impact of the third quarter FCDA on the monthly bills of residential customers is a decrease of Php0.03 per month for those consuming 10 cubic meters or less and not belonging to lifeline customers; Php0.06 per month for those consuming 20 cubic meters; and Php0.13 per month for those consuming 30 cubic meters.
Manila Water customers classified as semi-business and consuming 10 cubic meters or less are expected to have a decrease on their monthly bills of Php0.03; the monthly bills of those consuming 20 cubic meters per month and 30 cubic meters per month will go down by Php0.09 and Php0.16, respectively.
Manila Water provides water and wastewater services primarily to the East Zone concession area covering the cities of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig and Marikina. It is also in charge for the southeastern parts of Quezon City and Sta. Ana and San Andres in Manila. In Rizal province, the Manila Water services the municipalities of San Mateo, Rodriguez, Cainta, Taytay, Angono, Baras, Binangonan, Jala-jala, as well as the City of Antipolo.
Maynilad
Maynilad will effect an FCDA of 0.32% of its 2016 Average Basic Charge of Php33.87 per cubic meter or Php0.11 per cubic meter. This is a downward adjustment of Php0.01 per cubic meter compared to the second quarter 2016 FCDA of Php0.12 per cubic meter.
The impact of the FCDA on the monthly bills of residential customers is a decrease of Php0.02 per month for those consuming 10 cubic meters or less; Php0.08 per month for those consuming 20 cubic meters; and Php0.17 per month for those consuming 30 cubic meters.
Maynilad customers classified as semi-business and consuming 10 cubic meters or less are expected to see their monthly bills decrease by Php0.04; the monthly bills of those consuming 20 cubic meters per month and 30 cubic meters per month will decrease by Php0.11 and Php0.20, respectively.
Maynilad provides water and wastewater services to residents in most of Manila, parts of Quezon and Makati cities, as well as the cities of Caloocan, Pasay, Parañaque, Las Piñas, Valenzuela, Muntinlupa, Navotas, and Malabon in Metro Manila. It also serves the cities of Cavite, Bacoor, and Imus and the municipalities of Kawit, Noveleta, and Rosario in Cavite province, and Meycauan and Obando in Bulacan province.
The Amendment No. 1 of the Concession Agreements of Manila Water and Maynilad with MWSS provides the FCDA as a tariff mechanism to recover or compensate for fluctuations in foreign exchange rates. Gains and losses can arise from payment of concession loans and foreign currency-denominated debt whose proceeds are used to improve services.