Maynilad Water Services Inc. (Maynilad) on Monday announced that residents in the West Zone of the Greater Manila Area will have adjusted water rates as it implements a slight increase in its Foreign Currency Differential Adjustment (FCDA) starting April 2016.
Maynilad customers consuming 10 cubic meters or less every month will see their water bill increase by P0.15 from P115.76 to P115.91, while those consuming 20 cubic meters every month will see their water bill increase from P433.57 to P434.14, a difference of P0.57.
FCDA is a tariff mechanism granted to utility companies to allow them to recover losses or give back gains arising from the fluctuating movements of the peso against other currencies.
This is because Maynilad pays foreign-denominated concession fees to the Metropolitan Waterworks and Sewerage System (MWSS), as well as loans to fund projects that will improve services for its customers.
Meanwhile, households consuming 30 cubic meters a month will note an increase of P1.17 in their water bill, from the current P885.02 to P886.19.
The increase in water tariff for Maynilad customers stems from an upward adjustment in the FCDA for the second quarter of 2016, following the depreciation of the Philippine peso.
The adjustment–equivalent to P0.12 per cubic meter (cu.m.) or 0.34 percent of the Average Basic Charge of P33.87/cu.m.–shall be effective from April 1 to June 30, 2016.
This adjustment is higher by P0.05 per cubic meter compared to the FCDA in the first quarter of 2016.
Maynilad projects include the construction of new water infrastructure to enhance efficiencies and reduce water losses, and expansion of sewerage and sanitation services to help protect community health and the environment.
Maynilad is dominant private water concessionaire in the Philippines in terms of customer base (8.8 million households).
The company is the agent and contractor of the MWSS for the West Zone of the Greater Manila Area, which is composed of the cities of Manila (certain portions), Quezon City (certain portions), Makati (west of South Super Highway), Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon, all in Metro Manila; the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario, all in Cavite province.