WATER RATES in Boracay will not be adjusted after the decision of the island’s water regulator to discontinue the 14.34% decrease in the company’s foreign currency differential adjustment (FCDA), Manila Water Co., Inc. told the stock exchange on Wednesday.
Manila Water said the Tourism Infrastructure and Enterprise Zone Authority-Regulatory Office will implement the discontinuance of the existing FCDA, which took effect on Sept. 25, 2015, thus applying a 0% forex differential starting on Aug. 17, 2018.
In effect, water rates on the island will stay the same, with the residential “A” at P472.41 for those consuming up to 10 cubic meters (cu.m.).
In the same residential consumer grouping, those using between 11 and 20 cu.m. will have a base rate of P89.76, while those using between 21 and 50 cu.m. will have a rate of P132.27.
Residential “B” consumers will also keep their rate of 313.48. Those consuming more than 10 cu.m. under this grouping will pay the rate of the residential “A” segment.
Residential “A” consumers that exceed a consumption of 50 cu.m. will follow the rates of commercial “B” consumers.
Commercial “B” consumers are imposed a base rate of between P708.60, for those using no more than 10 cu.m., and P177.15 for those consuming more than 100 cu.m.
Water concessionaires are allowed to recover losses or give back gains through the FCDA tariff mechanism that factors in the movements of the peso against foreign currencies.
The FCDA mechanism has been set because water concessionaires pay foreign currency-denominated concession fees to the MWSS, as well as loans to fund service improvement projects for water and wastewater.
It also allows them to sustain their program to cut water losses or non-revenue water and bring the supply to the underserved and unserved sectors within their service areas.
Boracay Water is a subsidiary of Manila Water Philippine Ventures, Inc., which is a wholly owned subsidiary of Manila Water Co., Inc. — Victor V. Saulon