A water rate hike has been approved for this second quarter, announced the Metropolitan Waterworks and Sewerage System (MWSS) Regulatory Office.
The four-centavo increase was driven by a Foreign Currency Differential Adjustment (FCDA), which accounts for shifts in exchange rates between currencies, affecting government and water concessionaire loans from other countries, said MWSS Chief Regulator Patrick Lester Ty in a press conference.
“The adjustment is a pass-through mechanism set up by the MWSS Regulatory Office, and approved by the Department of Finance, in relation to the foreign currency-denominated loans of the two concessionaires (Manila Water Company, Maynilad Water Services),” he said.
“And this is a quarterly-reviewed tariff mechanism that would allow the concessionaires to recover losses or to give back gains arising from fluctuations in foreign exchange rates for the payment of their foreign currency-denominated loans that are used to fund the expansion and improvement of water and waste water services,” he explained.
In RH 5 Val Gonzales’ report, Ty clarified that the rate adjustment will not apply to Manila water consumers whose monthly usage does not exceed 20 cubic meters.
However, regular consumers who use up more than 20 cubic meters monthly and have a bill of ₱563.47 will see it rise to ₱563.92.
Ty said the adjustment would take effect on April 10, following the required 15-day publication. Nonetheless, Maynilad Water Services Inc. has opted to defer the price increase.
