MWSS downplays effect of peso depreciation on water rates

ABS-CBN News

Posted at Sep 29 2022 01:27 PM

Watch more on iWantTFC

MANILA – The Metropolitan Waterworks and Sewerage System (MWSS) on Thursday downplayed the effect of the depreciation of the peso on water rates.

The Philippine peso breached the P59 level intraday before recovering and closing at P58.98 against the US dollar on Wednesday.

“To be honest, there will be some effect on the water rates. As you all know before, we have a foreign currency differential adjustment (FCDA) mechanism. But this was removed, this will be removed in the concession agreement, because we had a revised concession agreement last year,” MWSS chief regulator Patrick Ty told ANC’s “Rundown.”

“There would be no more FCDA, meaning the losses will no longer be passed on to the public,” he explained.

Ty said they are conducting a rate rebasing right now, but the shrinking peso is not expected to have an impact on water rates.

“We expect to be finished by November, we will be conducting a public consultation sometime in October, and we expect that any tariff adjustments that will be done, it will be effective by January 1, 2023.”

“But again, for the FCDA I don’t think this will actually move the needle too much, it’s not really going to be a significant, it will not have a significant impact right now on the tariff,” he said.

--ANC, 29 September 2022