04 November 2021
PRESS RELEASE
MWSS RO Confirms Removal of FCDA from Manila Water and Maynilad Customers’ Water Bills
This to inform the public that the MWSS Board of Trustees (BOT) has recently approved the recommendation of the MWSS Regulatory Office (RO) to remove the Foreign Currency Differential Adjustment (FCDA) from customer bills under Manila Water Company, Inc., and to convert the FCDA in customer bills under Maynilad Water Services, Inc. into “Transitory Adjustment,” beginning 18 November 2021—the effectivity date of the Revised Concession Agreements (RCAs). The RCAs provide for the imposition of a tariff freeze until 31 December 2022 and the removal of the FCDA.
The FCDA is a quarterly-reviewed tariff mechanism that allows 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 sewerage services. It is a corrective mechanism formulated by the MWSS RO to avoid under recovery or over recovery caused by forex movements.
For East Zone Concessionaire Manila Water, the removal of the currently implemented FCDA (equivalent to 0.84% of the 2021 Average Basic Charge of Php28.52 per cubic meter or Php0.24 per cubic meter) from customers’ bills will result in the decrease of Standard Rates for water and sewerage services. The estimated impact on residential customers is shown in the table below:
MONTHLY BILLED VOLUME | PHP PER MONTH
10 cu.m. or less | -1.26
Lifeline customers | 0.00
20 cu.m. | -2.79
30 cu.m. | -5.69
Manila Water provides water and wastewater services to residents of the Cities of Makati, Mandaluyong, Pasig, San Juan, Taguig, and Marikina; and Municipality of Pateros. It is also in charge of the southeastern parts of Quezon City, and Sta. Ana and San Andres in the City of Manila. In the Province of Rizal, it services the City of Antipolo, and Municipalities of San Mateo, Rodriguez, Cainta, Taytay, Teresa, Angono, Baras, Binangonan, Jalajala, Cardona, Morong, Pilillia, and Tanay.
For West Zone Concessionaire Maynilad, removal of the currently implemented FCDA (equivalent to negative 0.55% of the 2021 Average Basic Charge of Php36.24 per cubic meter or negative Php0.20 per cubic meter) from customers’ bills will result in the increase of Standard Rates for water and sewage services. In order to protect customers from such an increase and retain the Concessionaire’s current rates, the FCDA will be converted into “Transitory Adjustment” in the customers’ bills from 18 November 2021 to 31 December 2022. The Cash Flow effect of the FCDA removal will be considered in the calculation of the Opening Cash Position of the Concessionaire in the 5th Rate Rebasing Exercise.
Maynilad provides water and wastewater services to residents in most parts of the City of Manila; northern and western parts of Quezon City; western parts of Makati City; and the Cities of Caloocan, Pasay, Parañaque, Las Piñas, Valenzuela, Muntinlupa, Navotas, and Malabon in Metro Manila. It also serves the Municipalities of Kawit, Noveleta, and Rosario, as well as the Cities of Bacoor, Cavite, and Imus in the Province of Cavite.
(sgd.)
PATRICK LESTER N. TY
Chief Regulator
