Metro Manila water rates to drop in January 2016

Customers of Manila Water Company Inc. and Maynilad Water Services Inc. can say, 'Hello, lower bills,' as a quarterly adjustment approved by the industry regulator kicks in next year.

The Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS-RO) on Tuesday approved the foreign currency differential adjustment (FCDA) which resulted in a water rate cut

The rates will be reduced on January 1, 2016, and will be reflected on the bill beginning February.

The FCDA is a mechanism that accounts for foreign exchange losses or gains arising from the loans of MWSS and private sector concessionaires for capital expenditures and concession fees.

Manila Water is reducing its rates by 26 centavos per cubic meter (/cu.m).

This means that households consuming 10/cu.m. or less will pay P1.38 less per month, MWSS Chief Regulator Joel C. Yu told reporters in a briefing.

Lifeline users

For those consuming 20/cu.m. and 30/cu.m, there will be a P3.06 and P6.37 reduction in their respective water bills.

Lifeline users — the "poorest customers" identified by MWSS and Manila Water – which consume 10/cu.m. or lower will find their monthly bills lower by P1.12.

Manila Water primarily caters to the East Zone covering the cities of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, and Marikina.

Parts of its concession area are southeastern Quezon City as well as Sta. Ana and San Andres in Manila, as well as the municipalities of San Mateo, Rodriguez, Cainta, Taytay, Angono, Baras, Binangonan, Jala-jala and Antipolo City in Rizal.

Along with Manila Water, Maynilad is imposing a 19-centavo/cu.m. decrease in water rates.

Yu said this is equivalent to a monthly cut of P0.64 for households consuming 10/cu.m. or less.

Volatile market

Those consuming 20/cu.m. will pay P2.41 less in their water bills, and those consuming 30/cu.m. can save up to P5.03/cu.m.

Maynilad services most Manila's households, parts of Quezon and Makati Cities as well as the cities of Caloocan, Pasay, Parañaque, Las Piñas, Valenzuela, Navotas, and Malabon.

Its franchise area also encompasses the cities of Bacoor and Imus, the municipalities of Kawit, Noveleta, and Rosario in Cavite.

"There will be no more adjustments for the rest of the quarter," Yu said, noting that water rates may change in the second quarter with another round of FCDA adjustments.

The next FCDA will depend mostly on changes in interest rates and the upcoming decision of the US Federal Reserve this week on the yield rates in the world's top economy.

Any impact on the foreign exchange market will affect the exchange rate, Yu noted.

"There will be a volatile market moving forward," he added. – VS, GMA New