MANILA - Maynilad Water Services Inc and Manila Water will implement a reduction in water charges starting this October due to a decrease in the foreign currency differential adjustment (FCDA).
The reduction, which takes effect on Oct. 1, covers residents in both the east and west zone. There are no changes in basic rates.
For Maynilad, it will be a negative adjustment of 0.26 percent of the average basic charge of P36.24 per cu.m., the effect would be a reduction in the water rates of its customers, it said.
For customers consuming an average of 20 cu.m. per month, the adjustment is equivalent to a reduction of P0.25 in their monthly bill, while those consuming 30 cu.m. per month will see a reduction of P0.50, the concessionaire said.
Maynilad said the reduction in its tariff is due to the downward movement in the FCDA equivalent to P0.09 per cubic meter.
Manila Water for its part will implement a downward adjustment of P0.15 per cubic meter from the previous FCDA of P0.48 per cubic meter.
This means, Manila Water customers will see a reduction of P0.78 for those consuming 10 cubic meters and below, P1.73 for 11 to 20 cu.m. users and P3.52 for 21 to 30 cu.m.
Utility firms are covered by the FCDA, which is a tariff mechanism that allows concessionaires to recover losses or return gains arising from foreign exchange fluctuations.
“Ito po is a passed on mechanism. Hindi po pwede kumita, at hindi po pwede magkaroon ng losses ang ating mga concessionaires dahil po sa movement ng foreign currency. Right now the peso is appreciating compared versus the US dollars and the Japanese yen, so this allowed the two concessionaires to be able to pass on these gains to our consumers,” said MWSS chief regulator Patrick Ty.
(This is a passed on mechanism. Concessionaires cannot make a profit on this, nor book losses because this is a forex movement. Right now the peso is appreciating compared to the USD and the Japanese yen, so this allowed the two concessionaires to be able to pass on these gains to our consumers)
Manila Water is the East Zone concessionaire which encompasses 23 cities and municipalities in Metro Manila and nearby provinces.
Maynilad services the West Zone covering Manila, certain areas in Quezon City, Makati City, Caloocan, Pasay, Paranaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon as well as select areas in Bacoor and Imus and the towns of Kawit, Noveleta and Rosario in Cavite.