Manila Water rates lower, Maynilad’s up starting July

MANILA, Philippines — Customers of the two concessionaires of the Metropolitan Waterworks and Sewerage System (MWSS) in Metro Manila and nearby provinces will face mixed adjustments in their monthly water bills beginning July due to foreign exchange adjustments.

The MWSS Board of Trustees approved on May 22 the foreign currency differential adjustment (FCDA) petitions of both Maynilad Water Services Inc. and Manila Water Co. Inc. for the third quarter.

The adjustment resulted in a P0.12 per cubic meter reduction in the rates of Manila Water, which oversees the east zone. Meanwhile, Maynilad’s water rates would inch up by P0.005 per cubic meter.

The tariff adjustment will translate to an increase of P0.01 in the monthly bill of Maynilad customers consuming 10 cubic meters or less, P0.05 for 20 cubic meters or less and P0.11 for 30 cubic meters or less.

Manila Water customers consuming 10 cubic meters or less will see a reduction of P0.55 in their monthly bill, P1.20 reduction for those consuming 20 cubic meters or less and P2.45 reduction for 30 cubic meters or less.

The mixed results in the FCDA of the two concessionaires was a result of the difference in their loan portfolios, MWSS Regulatory Office chief regulator Patrick Ty said.

At least 59 percent of the foreign loans of Manila Water are in euro while the remaining 41 percent were in US dollars, Ty said.

About 58 percent of Maynilad’s foreign currency loans were in Japanese yen while the remaining 42 percent were in dollars.

Based on monitoring and computations of MWSS, the peso appreciated against the US dollar between the fourth quarter of last year and second quarter of this year, while it depreciated against both the euro and the Japanese yen.

Ty noted that the increase in Maynilad’s rates may have been higher if not for the appreciation of peso against the dollar that mitigated the local currency’s weakening against the yen.

Maynilad earlier deferred the P0.09 increase in its FCDA for the second quarter, citing the need to maintain rate stability amid current economic conditions.