13 June 2025

PRESS RELEASE

MWSS RO CONFIRMS FOREIGN CURRENCY DIFFERENTIAL ADJUSTMENT (FCDA) ON CUSTOMERS’ WATER BILLS FOR THE

3RD QUARTER OF 2025

This is to inform the public that on 22 May 2025, the MWSS Board of Trustees (BOT) resolved to approve the recommendation of the MWSS Regulatory Office (RO) to implement the Foreign Currency Differential Adjustment (FCDA) for the Third (3rd) Quarter of 2025 effective 01 July 2025, 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 Maynilad customers and a tariff roll back for Manila Water customers.

Section 9.8 of the Amended Revised Concession Agreement (RCA) between the MWSS and the Concessionaires 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 and local government units within the Concession Area, 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 21 April 2025, Manila Water and Maynilad submitted their respective FCDA petitions, which were subsequently validated and evaluated by the MWSS RO. For the 3rd Quarter of 2025, Maynilad, which provides water and wastewater services to the West Concession Area, will implement an FCDA of -0.64% of its 2025 Average Basic Charge of Php51.40 per cubic meter, or -Php0.329 per cubic meter. From an implemented FCDA of -Php0.334 per cubic meter in the 2nd Quarter, the tariff shall be adjusted upward by an average of Php0.005 per cubic meter. Meanwhile, Manila Water, which serves the East Concession Area, will apply an FCDA of 1.12% of its 2025 Average Basic Charge of Php47.10 per cubic meter, or Php0.53 per cubic meter. From an implemented FCDA of Php0.65 per cubic meter in the 2nd Quarter, the tariff shall be adjusted downward by an average of Php0.12 per cubic meter.

The FCDA is a quarterly-reviewed tariff mechanism that allows the 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 wastewater 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