METRO MANILA’s two water concessionaires will raise tariffs on Aug. 13, after they were granted an increase in the amount they are allowed to recover for losses incurred from the peso’s weakness against other currencies.
Maynilad Water Services, Inc., which serves the National Capital Region’s west concession area, said it had been granted a foreign currency differential adjustment (FCDA) for the third quarter equivalent to 0.80% of the average basic charge of P34.51 per cubic meter (/cu.m.), or P0.27/cu.m.
”For Maynilad customers consuming an average of 10 cu.m. per month or less, the adjustment will translate to an increase of P0.13 in their monthly water bill. Those consuming 20 cu.m. per month will see a monthly bill increase of P0.48, while those consuming 30 cu.m. per month will have an additional P0.99 in their monthly bill,” Maynilad said in a press release.
Manila Water Co., which serves the east zone, said in a separate statement that its approved FCDA increase amounts to 1.12% or P0.28/cu.m. The FCDA will now be equivalent to 3.92% of the P24.81 basic charge or P0.98/cu.m. The rate is higher by 2.8% or P0.69/cu.m. compared with the previous quarter.
Manila Water customers consuming 10 cu.m. will have to pay P136.99 per month, or up by P1.46/cu.m. Those with a monthly consumption of 20 cu.m. will be charged P301.94/cu.m., or higher by P3.24/cu.m., while those using 30 cu.m. will pay P614.80/cu.m., up by P6.61/cu.m.
Lifeline customers — or low-income households consuming up to 10 cu.m. — are exempt from the adjustment and will continue to pay only P79.81 per month.
Water concessionaires are allowed to recover losses or give back gains through the FCDA tariff mechanism that factors in the movement of the peso against foreign currencies.
The FCDA mechanism has been set because the water concessionaires pay foreign currency-denominated concession fees to the Metropolitan Waterworks and Sewerage System, as well as loans to fund service improvement projects that will expand and upgrade water and wastewater services for customers.
Maynilad serves most of Manila, parts of Quezon and Makati cities, as well as the cities of Caloocan, Pasay, Parañaque, Las Piñas, Valenzuela, Navotas and Malabon. Its franchise area includes the cities of Bacoor and Imus and the municipalities of Kawit, Noveleta and Rosario in Cavite.
Manila Water provides water and sewerage services to Mandaluyong, Pasig, San Juan, Marikina, Pateros, Taguig, Makati, southeastern part of Quezon City, as well as San Andres and Sta. Ana in Manila. It also serves several towns of Rizal province, including San Mateo, Rodriguez, Antipolo, Cainta, Taytay, Angono, Binangonan, Baras and Jalajala. — V. V. Saulon