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 4 June 2015, MWSS issued board resolutions approving and confirming the recommendation of the MWSS Regulatory Office to implement the third quarter FCDA effective 1 July 2015.
Manila Water to reduce water tariff
Manila Water will implement a 0.08% FCDA on its prevailing Average Basic Charge of Php25.25 per cubic meter or Php0.02 per cubic meter. This is a downward adjustment of Php0.03 per cubic meter compared to the second quarter FCDA of Php0.05 per cubic meter.
The impact of the third quarter FCDA on the monthly bill of residential customers is a decrease of Php0.13 per month for those consuming 10 cubic meters or less and not belonging to lifeline customers; a reduction of Php0.29 per month for those consuming 20 cubic meters; and a decline of Php0.60 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 reduce their monthly bills by Php0.13; the monthly bill of those consuming 20 cubic meters per month and 30 cubic meters per month will go down by Php0.40 and Php0.74, 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 City of Antipolo.
Maynilad to increase water tariff
Maynilad will effect a 1.26% FCDA of its prevailing Average Basic Charge of Php33.60 per cubic meter or Php0.42 per cubic meter. This is an upward adjustment of Php0.03 per cubic meter compared to the second quarter FCDA of Php0.39 per cubic meter.
The impact of the FCDA on the monthly bill of residential customers is an increase of Php0.11 per month for those consuming 10 cubic meters or less; an increase of Php0.43 per month for those consuming 20 cubic meters; and an increase of Php0.87 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 bill go up by Php0.19; the monthly bill of those consuming 20 cubic meters per month and 30 cubic meters per month will increase by Php0.59 and Php1.07, 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, Navotas, and Malabon in Metro Manila. Its franchise area also covers the cities of Bacoor and Imus and the municipalities of Kawit, Noveleta and Rosario in Cavite province.
The Concession Agreements of Manila Water and Maynilad with MWSS provide 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.