Manila Water to lower charges in Q2

MANILA, Philippines – While Maynilad Water Services Incorporated is claiming compensation from the government over revenue losses, its Metro Manila east zone concessionaire counterpart, Manila Water Company Incorporated, will be lowering its charges by the second quarter this year.

In an exchange filing Friday, March 13, the Ayala-led firm announced it would implement beginning April 1, 2015 a Foreign Currency Differential Adjustment (FCDA) of its regular billing of P0.05 ($0.001126) per cubic meter based on the exchange rates of $1:P44.6044 and JP¥1:P0.3764.

The FCDA component of the water bill of Manila Water customers will be adjusted to 0.18% of the basic charge of P28.29 ($0.64) per cubic meter by the next quarter.

The FCDA is a tariff mechanism allowing Metropolitan Waterworks and Sewerage System (MWSS) concessionaires to cope with foreign exchange losses or gains arising from payments of foreign currency-denominated borrowings used for expansion and improvement of services. It is expressed as a percentage of the basic charge and MWSS ideally reviews FCDA on a quarterly basis.

Lower rates

The adjustment is lower by P0.31 ($0.00699) centavos per cubic meter compared to the prevailing FCDA rate for this quarter of P0.36 ($0.0081) per cubic meter, or 1.32% of the basic charge.

The current FCDA rate was computed based on the exchange rates of $1 to P44.7979 and JP¥1 to P0.4156.

Lifeline consumers using 10 cubic meters of water monthly will remain insulated from the adjustment, paying P83.14 ($1.87) per month, Manila Water spokesman Jeric Sevilla said.

Regular consumers using 10 cubic meters of water monthly will pay only P137.68 ($3.10) monthly from P139.23 ($3.14) per month.

Consumers using 20 cubic meters of water monthly will pay only P303.56 ($6.84) monthly from P307.00 ($6.93) monthly.

Benchmark consumers using 30 cubic meters of water monthly will pay only P618.22 ($13.96) monthly from P625.23 ($14.10) monthly effective April.

Billing

Apart from FCDA, the water billing in Metro Manila includes the basic charge, currency exchange rate, adjustment, environmental charge, sewerage charge (for business connections), maintenance charge, and value added tax.

The company said the FCDA has no impact on its projected net income.

Manila Water currently services 6.3 million residents in Metro Manila east zone concession.

Manila Water provides water and wastewater services in the east zone of Metro Manila, which covers Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, and parts of Manila and Quezon City, as well as Rizal Province.

It also has projects through subsidiaries in Laguna, Pampanga, Boracay, and Cebu. – Rappler.com