Maynilad to adjust water tariff by April 22
April 06, 2017
Residents in the West Zone will have adjusted water rates as Maynilad Water Services, Inc. (Maynilad) implements an increase in its Foreign Currency Differential Adjustment (FCDA) starting April 22, 2017, as well as an adjustment to cover the 1.9% Consumer Price Index.
Maynilad customers consuming 10 cubic meters or less every month will see their water bill increase by ₱2.60 from ₱115.88 to ₱118.48, while those consuming 20 cubic meters every month will see their water bill increase from ₱434.04 to ₱443.81 —a difference of ₱9.77. Meanwhile, households consuming 30 cubic meters a month will note an increase of ₱19.96 in their water bill, from the current ₱885.99 to ₱905.95.
The increase in water tariff for Maynilad customers is due to two factors:
1. The inflationary increase of 1.9% on the previous average basic rate of ₱33.87, which increased the average basic rate by ₱0.64 to ₱34.51 per cubic meter
2. The FCDA will go up from 0.32% (implemented in the 3rd quarter of 2016) to 0.69%, as a percentage of the new average basic rate of ₱34.51 to ₱0.24 per cubic meter.
The FCDA adjustment shall be effective from April 22 to June 30, 2017.
FCDA is a tariff mechanism granted to utility companies to allow it to recover losses or give back gains arising from the fluctuating movements of the peso against other currencies. This is because Maynilad pays foreign-denominated Concession Fees to the Metropolitan Waterworks and Sewerage System (MWSS), as well as loans to fund projects that will improve service for its customers.
Maynilad projects include the construction of new water infrastructure to enhance efficiencies and reduce water losses, and expansion of sewerage and sanitation services to help protect community health and the environment.