Water rates to rise in October
Water consumers in Metro Manila will see their monthly bill go up next month after the Metropolitan Waterworks and Sewerage System approved adjustments for its two concessionaires.
Effective Oct.1, water rates for the customers of Manila Water Co. Inc. will have a foreign currency differential adjustment of P1.56 per cubic meter.
This adjustment is based on the exchange rates of P53.433 to the US dollar and P0.480 to JPY1.
The FCDA component of the water bill will be adjusted to 6.11 percent of the basic charge.
On the other hand, water bills of Maynilad Water Services Inc. will have an FCDA of 1.08 percent or P0.37/ cu.m. for the fourth quarter.
FCDA is a tariff mechanism formulated to account for foreign exchange losses or gains arising from the payment by the company of concession loans and foreign currency denominated borrowings of the MWSS as well as loans of the company for service expansion and improvement of its services.
Manila Water said the FCDA has no impact on the projected net income of the company.
MWSS also approved Maynilad?s rebasing adjustment of P5.73/cu.m, adding to the current average basic water charge of P32.48/cu.m.
To mitigate the impact of the tariff increase on its customers, Maynilad offered a staggered implementation over a four-year period.
The tariff increase that MWSS approved did not include Maynilad?s corporate income tax which an appeals panel upheld in Maynilad?s favor in a final award dated Dec. 29, 2014 in its arbitration with the MWSS.