Water firms adjust rates

MANILA, Philippines - Water bills are set to increase next month in some areas in Metro Manila and nearby provinces but will decline in others as water concessionaires prepare to adjust rates in reaction to movements in foreign exchange.

West Zone concessionaire Maynilad Water Services Inc. announced yesterday an increase of 17 centavos per cubic meter in its rates beginning July 3 due to the weakening of the peso against other foreign currencies, particularly the US dollar.

The adjustment will reflect in August billings. From the average P46.56 per cubic meter, the rate will increase to P46.73.

“In effect, households consuming 10 cubic meters or less every month will see their water bill increase by P0.39 from P119.12 to P119.51, while those consuming 20 cubic meters every month will see their water bill increase from P422.35 to P423.82, a difference of P1.47,” a Maynilad statement read.

In its statement, Maynilad also advised households consuming 30 cubic meters a month to expect an increase of P3.01 in their water bill from the current P847.42 to P850.43.

Under its concession agreement with the government through the Metropolitan Waterworks Sewerage System (MWSS), Maynilad must pass on to customers its foreign exchange gains or losses arising from the payment of its foreign currency-denominated loans as well as concession fees to the government.

The adjustment is revenue neutral and has no impact on the projected net income of Maynilad. 

Maynilad’s concession areas cover Manila except some portions of San Andres and Sta. Ana; Quezon City including west of San Juan River, West Avenue, EDSA, Congressional, Mindanao Avenue, and areas covering Holy Spirit and Batasan Hills.

Also covered are areas in Makati west of South Luzon Expressway as well as Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon.

Cavite City, Bacoor and Imus, as well as the towns of Kawit, Noveleta and Rosario are also Maynilad areas.

East zone water concessionaire Manila Water Co. Inc., meanwhile, announced a reduction in rates in the third quarter as part of Foreign Currency Differential Adjustment (FCDA).

FCDA is a tariff mechanism based on foreign exchange rate movements in loan payments of water concessionaires for a given year, and expressed as a percentage of the basic charge.

Manila Water said it would cut rates by P0.54 per cubic meter based on the exchange rate of $1 to P41.14 and one yen per P0.4221.

The FCDA component of the water bill will be adjusted from negative 0.37 percent for the second quarter of 2013 to negative 1.97 percent of the basic charge for the third quarter of 2013.

Low-income households consuming 10 cubic meters per month or less will not be covered by the adjustment.

The MWSS approved the adjustment in FCDA through a resolution dated June 13.

The MWSS Regulatory Office reviews the FCDA quarterly and any adjustment is applied to the basic tariff for every month of the charging quarter.

Water rates in the second quarter of the year were also reduced because of FCDA adjustment.

The company’s concession areas include parts of Quezon City and Makati, southeastern part of Manila, Taguig, Pateros, Marikina, Pasig, San Juan, Mandaluyong, and Rizal province.