Water rates up this summer

MANILA, Philippines -  Water rates in Metro Manila are set to go up this summer as the two major water distributors prepare to recover foreign exchange losses incurred in the previous months.

The rate increase will result from the decision of the Metropolitan Waterworks and Sewerage System (MWSS) to allow concessionaires Maynilad Water Services Inc. and Manila Water to implement an increase in their foreign currency differential adjustment (FCDA) to recover foreign exchange losses.

West zone concessionaire Maynilad’s FCDA is equivalent to P0.13 per cubic meter while Manila Water’s adjustment is equivalent to P0.44 per cu.m.

This means Maynilad customers consuming an average of 10 cu.m. or less every month will pay P2.60 more, while those consuming 20 cu.m. should expect P9.77 increase in their monthly bills. Those consuming more than 30 cu.m. should expect a P19.96 increase.

“The increase in water tariff for Maynilad customers is due to inflationary increase of 1.9 percent on the previous average basic rate of P33.87 and the FCDA will go up from 0.32 percent (implemented in the third quarter of 2016) to 0.69 percent,” Maynilad said in a statement.

The increase in rates takes effect April 22.

Manila Water customers with up to 10 cu.m. water consumption per month will have to pay P1.91 more, while those consuming an average of 20 cu.m. should expect an upward adjustment of P4.19 in their bills. Consumption of up to 30 cu.m. would translate to P8.60 rate increase per month.

While the rate hike has been approved in essence, Manila Water said it has yet to receive its copy of the MWSS resolution.

“As of this time, we don’t have the resolutions yet and official transmittal from MWSS,” Manila Water spokesman Jeric Sevilla said in a text message.

FCDA is a tariff mechanism granted to utility companies to allow them to recover losses or give back gains from the fluctuation of the peso against other currencies.

Concessionaires normally secure foreign loans to fund service improvement projects.

Despite the expected increase in rates, the concessionaires maintained there would be no water supply shortage particularly in Metro Manila during the summer season as water at the Angat Dam remains at a comfortable level.

Around 95 percent of Metro Manila’s water supply comes from Angat Dam, which discharges water at the rate of 40 cubic meters per second.

“Using that as an indication, our outlook for the summer months would be better so we don’t see any tightness or shortage of supply,” Manila Water said. “If we go by the level of Angat, this year is much better.”

Last summer, the country reeled from the effects of the El Niño phenomenon, which affected water supply not just in Metro Manila.

Manila Water clarified that water supply outlook might change should the summer season drag on.

Maynilad is the largest private water concessionaire in the country in terms of customer base. Its service areas include Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, Malabon and certain portions of Manila, Quezon City, Makati and Cavite.

Manila Water, on the other hand, caters to the east zone covering parts of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, most parts of Quezon City, portions of Manila, as well as several towns in Rizal.