Water rates up in July 2018

MANILA, Philippines — Water rates will go up next month as the Metropolitan Waterworks and Sewerage System (MWSS) has allowed its concessionaires – Manila Water Co. Inc. and Maynilad Water Services Inc. – to implement an increase in their rates.

In a press briefing Thursday, MWSS chief regulator Patrick Ty said the agency has approved the application of Maynilad and Manila Water for its foreign currency differentials adjustment (FCDA) for the third quarter.

The approved adjustment of P0.99 per cubic meter for Manila Water and P0.06 per cu.m. for Maynilad will increase the cost of water to residential customers in the third quarter of the year.

Manila Water’s FCDA for the third quarter is equivalent to 6.21 percent of the average basic charge of P25.50 per cu.m. while Maynilad’s FCDA is equivalent to 0.74 percent of the average basic charge of P35.48 per cu.m.

This means Manila Water residents consuming 10 cu.m. or less will be charged an additional P5.21 per month while those consuming 20 cu.m. or less will see an increase of P11.51 per month. Those consuming 30 cu.m. will be charged an additional P23.59 per month.

In contrast, Maynilad customers consuming 10 cu.m. a month will see an increase of P0.23, while those consuming 20 cu.m. will experience an P0.86 increase in their monthly billing. A P1.75 increase will be experienced by those consuming 30 cu.m.

Ty said the rate increases take effect on July 1.

FCDA is the tariff mechanism granted to utility companies to allow them to recover losses or give back gains arising from the fluctuating movements of the peso against other currencies, as the concessionaires pay foreign-dominated fees as well as loans to fund projects that will improve service for their customers.

The last FCDA adjustment in April resulted in lower rates.

Maynilad is the largest private water concessionaire in the country in terms of customer base. It serves the areas of Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, Malabon, and certain portions of Manila, Quezon City, Makati and Cavite.

Manila Water, on the other hand, caters to the east zone that encompasses parts of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, most parts of Quezon City, portions of Manila, as well as several towns in Rizal.