WATER rates in Metro Manila will be lower starting next year primarily driven by various tariff adjustments.
The good news came about after the Metropolitan Waterworks and Sewerage System (MWSS) approved the foreign currency differential adjustment (FCDA) of distribution concessionaires Manila Water and Maynilad.
The adjustment is equivalent to a reduction of P0.26 per cubic meter for Manila Water and P0.19 per cu.m. for Maynilad Water Services Inc. (Maynilad).
For Maynilad’s customers consuming an average of 10 cu.m. per month, the adjustment will translate to a reduction of P0.64 in the monthly bill.
Those consuming 20 cu.m. and 30 cu. m. per month will have a reduction of P2.43 and P5.04 respectively.
“This reduction in Maynilad’s tariff is due to the downward movement in the FCDA despite the P0.27/cu.m. average basic rate adjustment owing to the 0.80 percent increase in Consumer Price Index (CPI) this year,” the company said.
Manila Water customers who consume an average of 20 cu. m. per month will have their bill lowered by P3.06 and those with an average use of 30 cu. m., by P6.37.
The FCDA adjustment–equivalent to P0.07 per cu.m. or 0.21 percent of the newly approved Average Basic Charge of P33.87/cu.m.–shall be effective from January 1, 2016 to March 31, 2016.
This adjustment is 46 centavos lower compared to the fourth quarter FCDA of 2015.
FCDA is the 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.
Concessionaires pay foreign-dominated concession fees to the MWSS, as well as loans to fund service improvement projects.
Maynilad covers Metro Manila’s west zone that include the cities of Manila, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, Malabon and parts of Quezon City, Makati and Cavite.
The company has an average sales of 462 million cu. m. per year.
It is considered as the largest water concessionaire in terms of customer base in the country covering a total of 540 square kilometers equivalent to 8.8 million people.
Manila Water serves the east zone that covers parts of Quezon City, Makati, Taguig, Pateros, Marikina, Pasig, San Juan, Mandaluyong and Rizal province.
The company serves a total of 8.2 million customers and were able to sell 671.2 million cu. m. in 2014.