Metropolitan Waterworks and Sewerage System (MWSS) approved the fourth quarter foreign currency differential adjustment (FCDA) for Manila Water Company, Inc. and Maynilad Water Services, Inc.
On 14 September 2017, the MWSS issued board resolutions approving and confirming the recommendation of the MWSS Regulatory Office to implement the fourth quarter FCDA effective 1 October 2017.
Manila Water
Manila Water will implement an FCDA of 4.86% of its 2017 Average Basic Charge of Php24.81 per cubic meter or Php1.21 per cubic meter. This is an upward adjustment of Php0.24 per cubic meter compared to the 3rd quarter 2017 FCDA of Php0.97per cubic meter.
The impact of the fourth quarter FCDA on the monthly bills of residential customers is an increase of Php1.22 per month for those consuming 10 cubic meters or less and not belonging to lifeline customers; Php2.72 per month for those consuming 20 cubic meters; and Php5.55 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 an increase on their monthly bills of Php1.22 per month on their monthly bills. Those consuming 20 cubic meters per month and 30 cubic meters per month will go up by Php3.72 and Php6.80, 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 1.09% of its 2017 Average Basic Charge of Php34.51 per cubic meter or Php0.38 per cubic meter. This is an upward adjustment of Php0.11 per cubic meter compared to the 3rd quarter 2017 FCDA of Php0.27 per cubic meter.
The impact of the FCDA on the monthly bills of residential customers is an increase of Php0.34 per month for those consuming 10 cubic meters or less; Php1.27 per month for those consuming 20 cubic meters; and Php2.60 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 go up by Php0.57; the monthly bills of those consuming 20 cubic meters per month and 30 cubic meters per month will increase by Php1.75 and Php3.20, 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 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.
