Manila Water, Maynilad ask for rate hike due to weakening peso

ABS-CBN News

Posted at Jun 22 2017 05:41 PM

MANILA - Water concessionaires are asking for a rate hike to compensate for the effects of the weakening peso on their foreign debts. 

Manila Water and Maynilad said there is a need for a foreign currency differential adjustment (FCDA) following the recent weakening of the local currency versus the dollar, yen and euro. 

The weaker peso makes it more expensive for the water concessionaires to service their foreign debts. 

Industry sources say Manila Water is asking for a rate hike of P0.29 per cubic meter, while Maynilad seeks a P0.07 rate hike to cover the FCDA for the third quarter.

The MWSS board, however, has yet to decide on the rate hike petitions which are supposed to take effect July 1.

The water concessionaires have to publish the approved water rates 15 days before they are implemented. -- with a report from Alvin Elchico, ABS-CBN News