By Victor V. Saulon, Sub-Editor
MANILA Water Co. and Maynilad Water Services, Inc. will be raising water rates for the fourth quarter of the year to factor in the weakening of the peso against foreign currencies.
Maynilad, the water concessionaire in Metro Manila’s west zone, notified customers of a “slight increase” in its foreign currency differential adjustment (FCDA) starting on Oct. 1, 2017.
The latest FCDA, at P0.38 per cubic meter, is equivalent to 1.09% of the average basic charge of P34.51/cu.m. Compared to the previous quarter, that P0.38/cu.m. FCDA is up by P0.11/cu.m. from the previous quarter, “following the depreciation of the Philippine peso.” It will be in effect from Oct. 1 to Dec. 31, 2017.
“Maynilad customers consuming 10 cubic meters or less every month will see their water bill increase by P0.34 from P118.61 to P118.95, while those consuming 20 cubic meters every month will see their water bill increase from P444.29 to P445.56, a difference of P1.54,” the company said in a statement on Friday.
“Meanwhile, households consuming 30 cubic meters a month will note an increase of P2.60 in their water bill, from the current P906.94 to P909.54,” it added.
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 the water concessionaires pay foreign currency-denominated concession fees to the state agency Metropolitan Waterworks and Sewerage System as well as loans to fund service improvement projects that will expand and upgrade water and wastewater services.
It also allows them to sustain their program to cut water losses or non-revenue water and bring the supply to the underserved or unserved sectors in their service areas.
MANILA WATER TOO
Separately, east zone concessionaire Manila Water said an FCDA of P1.21/cu.m. will be imposed in about 15 days, or at the start of October.
It said the adjustment is based on the exchange rates of P50.6382 per US dollar and P0.4504 per Japanese yen.
“The FCDA component of the water bill will be adjusted to 4.86% of the basic charge,” it said.
Manila Water said customers using 10 cu.m. of water a month will see their bill rise by P1.22 to P138.22 from P137. Those consuming 20 cu.m. will see a P2.72 increase in their monthly bill to P304.66 from P301.94, while those using 30 cu.m. can expect a P5.53 increase to P620.33 from P614.80 from the previous quarter.
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 used water services to Mandaluyong, Pasig, San Juan, Marikina, Pateros, Taguig, Makati, southeastern part of Quezon City and 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.