ADVERTISEMENT
MWSS: Manila Water rates to go up, Maynilad rates to roll back effective April 1
By TED CORDERO,GMA NewsCustomers of Manila Water Company Inc. will brace for higher water bills while those of Maynilad Water Services Inc. will expect lower bills in the second quarter of 2021 after the Metropolitan Waterworks and Sewerage System (MWSS) approved a quarterly adjustment for the water distribution utilities.
At a virtual press briefing on Thursday, MWSS chief regulator Patrick Ty announced that the MWSS Board of Trustees has approved its recommendation to implement the 2021 second quarter foreign currency differential adjustment (FCDA), effective April 1, 2021, “based on its evaluation of the FCDA proposals of the concessionaires.”
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.
It is a corrective mechanism formulated by the MWSS to avoid under recovery or over recovery caused by forex movements.
East zone concessionaire Manila Water will implement an FCDA of 0.84% of its 2021 average basic charge of P28.52 per cubic meter or P0.24 per cubic meter.
“This is an upward adjustment of P0.05 per cubic meter from the previous FCDA of P0.19 per cubic meter,” Ty said.
The adjustment translates to an increase of P0.27 per month for Manila Water’s residential customers consuming 10 cubic meters or less, “except lifeline customers who are exempt from the quarterly FCDA charges.”
Those consuming 20 cubic meters and 30 cubic meters a month will see an increase of P0.60 and P1.22 in their monthly water bills, respectively.
West zone concessioner Maynilad, meanwhile, will apply an FCDA of -0.41% of its 2021 average basic charge of P36.24 per cubic meter or -P0.15 per cubic meter.
ADVERTISEMENT
“This is a downward adjustment of P0.01 per cubic meter from the previous FCDA of -P0.14 per cubic meter,” the MWSS chief regulator said.
With this, Maynilad residential customers consuming 10 cubic meters or less are expected to see their monthly bills go down by P0.08.
Those consuming 20 cubic meters per month will see a downward adjustment of P0.10 in their monthly bills, while those consuming 30 cubic meters will have a P0.20 rollback.
“The reason why there is an increase in Manila Water and rollback for Maynilad is because there are significant portions of the loans of Manila Water are in Japanese yen and in euros. Since the Japanese yen and euros appreciated against the Philippine peso... it caused an increase their (Manila Water’s) FCDA,” Ty said.
“Maynilad, majority of their loans payable for this quarter are in US dollars. The peso appreciated against the US dollar which caused the rollback of P0.01 per cubic meter,” he added.
Manila Water provides water and wastewater services to the eastern part of Metro Manila, particularly the cities of Mandaluyong, San Juan, Pasig, Marikina, Taguig, the municipality of Pateros, and portions of Makati, Manila and Quezon City, as well as the province of Rizal.
Maynilad, meanwhile, currently serves customers in the cities of Caloocan, Las Piñas, Makati, Malabon, Manila, Muntinlupa, Navotas, Parañaque, Pasay, Quezon, Valenzuela.
It also services certain areas in Cavite such as the cities of Bacoor, Cavite, and Imus; and the towns of Kawit, Noveleta, and Rosario.
— RSJ, GMA News