02 December 2020
PRESS RELEASE
MWSS RO Confirms Tariff Reduction on Customers’ Water Bills for the 1st Quarter of 2021
The Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS RO) is pleased to announce the tariff decrease on customers’ water bills for the First (1st) Quarter of 2021. The MWSS Board of Trustees (BOT) has recently approved the recommendation of the MWSS RO to implement the 2021 1st Quarter Foreign Currency Differential Adjustment (FCDA) effective 01 January 2021, based on its evaluation of the FCDA proposals of the Concessionaires.
Manila Water Company, Inc. (MWCI), which provides water and wastewater services for the East Zone concession area, will implement an FCDA of 0.66% of its 2021 Average Basic Charge of Php28.52 per cubic meter or Php0.19 per cubic meter. This is a downward adjustment of Php0.14 per cubic meter from the previous FCDA of Php0.33 per cubic meter. MWCI residential customers consuming 10 cubic meters or less (except lifeline customers who are exempt from the quarterly FCDA charges) are expected to have a decrease on their monthly bills of Php0.76 per month. Those consuming 20 cubic meters per month and 30 cubic meters per month are expected to have their bills go down by Php1.69 and Php3.45 respectively.
Maynilad Water Services, Inc. (MWSI), which serves the West Zone concession area, will apply an FCDA of negative 0.39% of its 2021 Average Basic Charge of Php36.24 per cubic meter or negative Php0.14 per cubic meter. This is also a downward adjustment of Php0.05 per cubic meter from the previous FCDA of negative Php0.09 per cubic meter. MWSI residential customers consuming 10 cubic meters or less are expected to see their monthly bills go down by Php0.05. Those consuming 20 cubic meters per month and 30 cubic meters per month are expected to have a decrease of Php0.64 and Php1.30 respectively on their bills this coming quarter.
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.
(sgd.)
PATRICK LESTER N. TY
Chief Regulator
