Water rates up in Metro Manila, Boracay

MANILA, Philippines — Customers will be greeted with higher water rates in 2018 as the Metropolitan Waterworks and Sewerage System (MWSS) approved its concessionaires’ implementation of average basic rate adjustments.

The MWSS approved Maynilad Water Services’ first quarter increase equivalent to P0.97 per cubic meter and that of Manila Water’s P0.69 per cu.m. on its basic charge.

It also granted Maynilad a foreign currency differential adjustment (FCDA) equivalent to 0.60 percent as applied to the newly approved 2018 average basic charge of P35.48 per cu.m.

FCDA is the tariff mechanism granted to utility companies to allow them to recover losses or give back gains arising from the fluctuating movements of the peso against other currencies, as the concessionaires pay foreign-dominated fees and loans to fund projects that will improve service for customers.

Despite the downward adjustment of an average of P0.17 per cu.m. in the FCDA, the overall impact of the consumer price index and FCDA adjustments is an increase in the monthly water bills of Maynilad customers.

This means Maynilad residential customers consuming a monthly average of 10 cu.m. or less will have to pay an additional P2.70 per month while those consuming 20 cu.m. would have a P10.18 increase in their water bills. Those using more than 30 cu.m. will experience an increase of P20.78 per month.

For Manila Water customers, an increase of P2.18 is expected for those who consume 10 cu.m. per month. A further adjustment of P1.34 is expected for those who consume a monthly average of 20 cu.m. and P2.66 for those who consume 30 cu.m.

Customers classified as semi-business will also see higher adjustments in their bills – P0.61 for consuming 10 cu.m. or less and P3.3 for 30 cu.m.

All the adjusted rates will take effect Jan. 1, 2018.

Maynilad is the largest private water concessionaire in the country in terms of customer base. It serves the areas of Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon as well as some portions of Manila, Quezon City, Makati and Cavite.

Manila Water, on the other hand, caters to the East Zone, which encompasses 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.

Meanwhile, residents of Boracay Island will also pay higher water bills by Jan. 1 as the Ayala-led Manila Water secured approval for an increase in rates from the Tourism Infrastructure and Enterprise Zone Authority (TIEZA)’s regulatory office.

Based on the approved water rates, Boracay Island Water will implement an upward adjustment equivalent to 15.8 percent to its residential and commercial customers.

Under the new water tariff, households with up to 10 cu.m. of water consumption will have a new rate of P404.67 per connection from the current P349.46.

Those consuming 11 to 20 cu.m. will see rates increasing to P76.89 per cu.m. while those consuming 21 to 50 cubic meters will have to pay P113.31 per cu.m. from the current P97.85.

The rate for commercial A, which are mostly resorts, will jump to P1,011.64 per connection consuming 10 cubic meters and below. The previous rate was P873.63 per cubic meter.

Under this category, consumption of 100 cubic meters and above will be billed P161.85 per cubic meter from P139.77 per cubic meter.

The commercial B rates will rise to P606.99 per connection for consumption of up to 10 cubic meters, from P524.17. Under this category, consumption of more than 100 cubic meters will have to pay P151.75 per cubic meter from the current P131.05 per cubic meter.

In cases when water consumption of residential customers exceeds 50 cubic meters, the water computation will follow that of commercial B rate.

Sewerage tariff will also increase for resorts, dive shops, bars and restaurants.

The new sewerage tariff for residential users will go up to a standard rate of P30.35 per cubic meter multiplied by 70 percent of the total water consumed.

The previous rate was at P26.21 per cubic meter.

The standard sewerage tariff for commercial users is P40.46 per cubic meter, up from P34.94 per cubic meter.

For the nine-month period of 2017, Boracay Water posted billed water volume at 4.1 million cubic meters, up 12 percent from 3.7 million cubic meters in the same period last year.

The growth was recorded despite a two percent decrease in water service connection to 6,271 from 6,413 in the comparative period.

Boracay Water was formed through a 25-year concession agreement between Manila Water Philippine Ventures and the TIEZA in 2009.