04 October 2021
MWSS RO Confirms Tariff Decrease on Maynilad Customers’ Water Bills for the 4th Quarter of 2021
This to inform the public that the MWSS Board of Trustees (BOT) has recently approved the recommendation of the MWSS Regulatory Office (RO) to implement the 2021 4th Quarter Foreign Currency Differential Adjustment (FCDA) of Maynilad Water Services, Inc. based on its validation and evaluation of the FCDA proposal of the West Zone Concessionaire.
Maynilad Water Services, Inc. will apply an FCDA of negative 0.55% of its 2021 Average Basic Charge of Php36.24 per cubic meter or negative Php0.20 per cubic meter. This is a downward adjustment of Php0.05 per cubic meter from the previous FCDA of negative Php0.15 per cubic meter. Maynilad residential customers consuming 10 cubic meters or less are expected to see their monthly bills go down by Php0.18. Those consuming 20 cubic meters per month and 30 cubic meters per month are expected to have a decrease of Php0.69 and Php1.40 respectively in their bills this quarter.
Among the highlights of the Revised (Water) Concession Agreements, which are to take effect no later than 18 November 2021, are the imposition of a tariff freeze until 31 December 2022 and the removal of the FCDA. The MWSS RO confirms that the implementation of the FCDA this quarter has been approved for Maynilad, as the proposed downward tariff adjustment has been deemed greatly beneficial to the public. Meanwhile, East Zone Concessionaire Manila Water Company, Inc. has voluntarily deferred its FCDA implementation upon recommendation of the MWSS RO, as it will result in an upward tariff adjustment for its customers.
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.
PATRICK LESTER N. TY