Maynilad to hike rate next month

MANILA, Philippines - Maynilad Water Services, Inc. announced yesterday that it would increase its rates from October to December this year.

In a statement, Maynilad said its Foreign Currency Differential Adjustment (FCDA) will be adjusted to 36 centavos per cubic meter – an increase of 27 centavos per cubic meter from the 9 centavos in the previous quarter.

For Maynilad customers consuming an average of 10 cubic meters per month, the adjustment will translate to an increase of 93 centavos in their monthly bill.

The FCDA is a tariff mechanism that allows utility companies like Maynilad to recover losses or pass on gains resulting from payments of concession loans and foreign-currency denominated borrowings.

Maynilad currently pays foreign currency-denominated concession fees to the Metropolitan Waterworks and Sewerage System (MWSS). The FCDA goes down whenever the peso strengthens against foreign currencies, and goes up whenever the peso depreciates.

“ Moreover, the company is implementing an aggressive program to reduce water losses on non-revenue water and bring it to the undeserved or unserved sectors in the West Zone. Maynilad has also focused its attention on complementing its programs for sewerage and sanitation to accelerate the provision of related service,” Maynilad said in a statement.