Water rates going up

MANILA, Philippines - The Ayala-controlled Manila Water is raising its rates by 10 centavos per cubic meter next month to reflect the strengthening of the peso against the dollar.

Manila Water said it has to raise its rates as the peso has strengthened to P44.627 against the dollar from P46.32. The rate hike takes effect on Oct. 9.

The Foreign Currency Differential Adjustment (FCDA) component of the water bill would be adjusted from 0.01 percent to 0.45 percent of the basic charge, Manila Water said.

The FCDA is a tariff mechanism that reflects foreign exchange losses or gains arising from the payment of Manila Water of foreign-currency denominated concession fees to the Metropolitan Waterworks and Sewerage System (MWSS), as well as loans for its service expansion and improvement.

The rate adjustment, according to Manila Water, will have no impact on the projected net income of the company.

The MWSS earlier approved a reduction in water rates, effective July 1 to Sept. 30, 2010, in Metro Manila and nearby areas.

Manila Water’s jurisdiction covers the eastern part of Quezon City, Mandaluyong City, San Juan City, Marikina City, Pasig City, Pateros town, parts of Manila and Makati City as well as Rizal and Bulacan provinces.