Maynilad to increase water charges effective July 1

MANILA, Philippines – Maynilad Water Services announced that it is raising its water charges in the third quarter of the year due to adjustments in the Foreign Currency Differential Adjustment (FCDA) component of its regular billing.

The FCDA is a tariff mechanism allowing concessionaires of the Metropolitan Waterworks and Sewerage System (MWSS) to cope with foreign exchange losses or gains arising from payments of foreign currency-denominated borrowings used for expansion and improvement of services.

The FCDA, expressed as a percentage of the basic charge, is reviewed qurterly by the MWSS Regulatory Office.

The Metro Manila west zone concessionaire – co-owned by Pangilinan-led Metro Pacific Investments Corporation (MPIC) and Consunji-controlled DMCI-Holdings Incorrporated – will implement an upward adjustment of P0.03 per cubic meter from the prevailing FCDA of P0.39 per cubic meter, as approved by MWSS.

The third quarter FCDA of P0.42 per cubic meter shall be expressed as 1.26% of Maynilad’s prevailing average basic charge of P33.60 ($0.75) per cubic meter.

Given the increase, Maynilad residential customers consuming 10 cubic meters will pay an additional P0.11 per month. Those consuming 20 cubic meters will pay an additional P0.43 monthly, while households consuming 30 cubic meters will pay an additional P0.87 per month.

Maynilad customers classified as semi-business and consuming 10 cubic meters or less will see their monthly bill rise by P0.19. Those consuming 20 cubic meters per month and 30 cubic meters monthly will pay an additional P0.59 and P1.07, respectively.

Lower charges

Manila Water Company, Incorporated, meanwhile, is lowering its water charges also effective July 1, citing FCDA adjustments.

In an exchange filing on June 8, the Ayala-led firm and the east zone water concessionaire said it would implement an FDCA adjustment of P0.2 per cubic meter based on exchange rates of $1:P44.41, and ¥1:P0.37.

The FCDA component of the water bill will be adjusted to 0.08% of the basic charge of P25.25 ($0.56) per cubic meter for the third quarter of 2015. The second quarter FCDA was computed based on the exchange rates of $1:P44.60, and ¥1:P0.38, and was expressed as 0.18% of the basic charge.

As such, regular Manila Water consumers using 10 cubic meters of water monthly will pay only P134.26 per month. Consumers using 20 cubic meters will pay P295.94. Lifeline consumers using less than 10 cubic meters monthly will remain insulated from the adjustment, paying P81.18 monthly.

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. – Rappler.com

$1 = P45.03