Maynilad adjusts rates due to forex

June 17, 2013

West Zone concessionaire Maynilad Water Services, Inc. (Maynilad) will slightly increase its water charges by ₱0.17 per cubic meter (average, all-in) beginning July 3, due to the weakening of the Philippine peso against other foreign currencies. The adjustment will be reflected in the August bill of its customers.

From the average all-in-tariff of ₱46.56 per cubic meter, the rate will increase to ₱46.73 per cubic meter, an upward adjustment of ₱0.17 per cubic meter.

In effect, households consuming 10 cubic meters or less every month will see their water bill increase by ₱0.39 from ₱119.12 to ₱119.51, while those consuming 20 cubic meters every month will see their water bill increase from ₱422.35 to ₱423.82, a difference of ₱1.47. Meanwhile, households consuming 30 cubic meters a month will note an increase of ₱3.01 in their water bill, from the current ₱847.42 to ₱850.43.

Under its Concession Agreement with the Philippine government, Maynilad must pass on to customers its foreign exchange gains or losses arising from the payment of its foreign currency-denominated loans from banks and concession fees to the government. The adjustment is revenue neutral and has no impact on the projected net income of Maynilad.

Maynilad is the largest private water concessionaire in the Philippines in terms of customer base. It is a concessionaire of the MWSS for the West Zone of the Greater Manila Area, which is composed of the cities of Manila (all but portions of San Andres & Sta. Ana), Quezon City (west of San Juan River, West Avenue, EDSA, Congressional, Mindanao Avenue, the northern part starting from the Districts of the Holy Spirit & Batasan Hills), Makati (west of South Super Highway), Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon all in Metro Manila; the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario, all in Cavite Province