Maynilad, Manila Water to Hike Rates in Q4 Due to Forex Adjustments

MANILA, Philippines — Customers of Maynilad Water Services Inc. and Manila Water will pay more in the fourth quarter after regulators approved adjustments related to foreign exchange movements. The Metropolitan Waterworks and Sewerage System (MWSS) has given the go ahead for the implementation of the foreign currency differential adjustment (FCDA) during the October to December period. FCDA is a quarterly-reviewed tariff mechanism that allows Manila Water and Maynilad to recover losses or return gains following movements in the value of the peso against foreign currencies. The water providers have to settle foreign currency-dominated loans that are used to finance expansion and enhancement of their water and sewerage services. Maynilad is allowed to collect an additional 24 centavos per cubic meters (cu m). Those consuming 10 cu m or less will see a slight increase of 67 centavos in their bill. Customers using up to 20 cu m and 30 cu m will realize an additional P2.54 and P5.19, respectively. The group is the water and wastewater services provider for the West Zone, covering 17 cities and municipalities in Metro Manila and Cavite. Manila Water, meanwhile, will have an upward adjustment of P0.08 per cu m, or a hike of P0.34 for those consuming 10 cu m or less. Customers with up to 20 cu m and 30 cu m usage will pay an additional 75 centavos and P1.53, respectively. The firm 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. Meanwhile, MWSS chief regulator Patrick Lester Ty said the two concessionaires have been strengthening their systems amid the threat of a strong El Niño, set to be felt by early next year. “So we assure you that the two concessionaires are prepared, and contingency measures have already been in place or are being prepared. And we are constantly improving our services to ensure that the proper services to the consumers will be provided,” he said. /das