Manila Water, Maynilad to raise water rates in April
By Sheldeen Joy Talavera, Reporter
Customers in Metro Manila and nearby areas will have to brace for higher water bills starting April as the regulator approved the two concessionaires’ applications for rate hikes due to foreign exchange movements.
The Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS RO) approved a rate hike of P0.04 per cubic meter (cu.m.) for Manila Water Co. Inc., and an increase of P0.09 per cu.m. for Maynilad Water Services, Inc., the agency said in a statement on Friday.
Customers served by Manila Water in the east zone who consume 10 cu.m. or less will see their water bills go up by P0.14. Those consume up to 20 cu.m. and 30 cu.m. will have to pay an additional P0.29 and P0.58, respectively.
Meanwhile, Maynilad customers in the west zone who consume 10 cu.m. or less will see an upward adjustment of P0.27 in their bills next month. Those who consumes up to 20 cu.m. and 30 cu.m. will see their bills increase by P1 and P2.07, respectively.
The tariff increase will have less impact on low-income households who are beneficiaries of the enhanced lifeline program of Manila Water and Maynilad.
The upward adjustments were approved as part of the foreign currency differential adjustment (FCDA).
The FCDA is a tariff mechanism which allows water concessionaires to regain losses or return gains by the movement of peso against other foreign currencies. The companies pay foreign currency-denominated concession fees to MWSS, as well as loans that are used to finance projects to expand and improve water and sewerage services.
Meanwhile, the MWSS RO penalized Maynilad amounting to P42.57 million for the prolonged water service interruptions that occurred in the southern portion of the west concession area last month.
The regulator said that investigation showed that the company failed to meet its service obligation of providing uninterrupted 24-hour supply of water at a minimum pressure of seven pounds per square inch to 98,331 customers within the Putatan Water Treatment Plant and Poblacion Water Treatment Plant Supply Zones.
As a result, Maynilad will have to refund P432.92 per affected water service connection, to be reflected in customers’ water bills by next month.
Manila Water serves the east zone network of Metro Manila, covering parts of Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several towns in Rizal province.
Maynilad serves parts of Manila, Quezon City, and Makati, as well as Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon. It also supplies water to the cities of Cavite, Bacoor, Imus, and the towns of Kawit, Noveleta, and Rosario in Cavite province.
Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.
