MWSS approves water rate adjustments
26 April 2017
Metropolitan Waterworks and Sewerage System (MWSS) approved the adjustments in
standard rates for Manila Water Company, Inc. and Maynilad Water Services, Inc. and their
second quarter foreign currency differential adjustments (FCDA).
On 5 April 2017, MWSS Board of Trustees (BOT) approved the recommendation of the
MWSS Regulatory Office to implement the adjustments in standard rates and second
quarter FCDA.
The MWSS entered into Concession Agreements in 1997 with Manila Water for the East
Service Area and Maynilad for the West Service Area. The Concession Agreement provides
that the Standard Rates for water and sewerage services shall be adjusted each year
effective January 1 of each Charging Year in accordance with the Rates Adjustment Limit
(RAL) which takes into account, among others, the increase in aggregate prices as
measured by the Consumer Price Index.
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 debts of concessionaires whose proceeds are used in the
provision of water and waste water services.
Manila Water
The MWSS-BOT approved the RAL for Manila Water equivalent to negative 0.31%
composed of the “R” Factor of negative 2.21% and “C” Factor of 1.90%. Both percentages,
“R” and “C” Factors, as applied to the 2016 Basic Charge of Php24.89 per cubic meter result
in an average downward adjustment of Php0.08 per cubic meter to the Average Standard
Rates.
Manila Water will implement an FCDA of 2.8% of the Basic Charge. As applied to the 2017
Average Basic Charge of Php24.81 per cubic meter, the adjusted FCDA is Php0.69 per
cubic meter. This is an upward adjustment of Php0.44 per cubic meter compared to the
prevailing FCDA of Php0.25 per cubic meter.
The adjustments in Standard Rates and FCDA result in an increase of Php0.36 per cubic
meter.
The net impact of the adjustments on Standard Rates and the second quarter FCDA on the
monthly bills of residential customers is an increase of Php1.91 for those consuming 10
cubic meters per month or less and not belonging to lifeline customers; Php4.19 for those
consuming 20 cubic meters per month; and Php8.60 for those consuming 30 cubic meters
per month.
Manila Water customers classified as semi-business and consuming 10 cubic meters per
month or less are expected to have an increase on their monthly bills of Php1.91; the
monthly bills of those consuming 20 cubic meters per month and 30 cubic meters per month
will go up by Php5.83 and Php10.58, 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
The MWSS-BOT approved the RAL for Maynilad equivalent to 1.90% composed of the “R”
Factor of 0% and “C” Factor of 1.90%. Both percentages, “R” and “C” Factors, as applied to
the 2016 Basic Charge of Php33.87 per cubic meter results in an average adjustment of
Php0.64 per cubic meter to the Average Standard Rates.
Maynilad will effect an FCDA of 0.69% of the Basic Charge. As applied to the 2017 Average
Basic Charge of Php34.51 per cubic meter, the adjusted FCDA is Php0.24 per cubic meter.
This is an upward adjustment of Php0.13 per cubic meter compared to the prevailing FCDA
of Php0.11 per cubic meter.
The impact of the FCDA on the monthly bills of residential customers is an increase of
Php2.60 for those consuming 10 cubic meters per month or less; Php9.76 for those
consuming 20 cubic meters per month; and Php20.09 for those consuming 30 cubic meters
per month.
Maynilad customers classified as semi-business and consuming 10 cubic meters per month
or less are expected to see their monthly bills go up by Php4.42; the monthly bills of those
consuming 20 cubic meters per month and 30 cubic meters per month will increase by
Php13.47 and Php24.62, 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.