Maynilad to adjust water tariff by October
September 14, 2015
Residents in the West Zone will have adjusted water rates as Maynilad Water Services Inc. (Maynilad) implements a slight increase in its Foreign Currency Differential Adjustment (FCDA) starting October 2015.
For Maynilad customers consuming an average of 10 cu.m. per month or less, the adjustment will translate to an increase of P0.36 in their monthly water bill. Those consuming 20 cu.m. per month will see a monthly bill increase of P1.37, while those consuming 30 cu.m. per month will have an additional P2.80 in their monthly bill.
The increase in water tariff for Maynilad customers is due to an upward adjustment in the FCDA for the fourth quarter of 2015, following the depreciation of the Philippine peso. The adjustment—equivalent to P0.53 per cubic meter (cu.m.) or 1.58% of the Average Basic Charge of P33.60/cu.m.—shall be effective from October 1, 2015 to December 31, 2015.
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-dominated Concession Fees to the Metropolitan Waterworks and Sewerage System (MWSS), as well as loans to fund projects that will improve service for its customers.
Some of Maynilad’s current projects include the continued reduction of water losses, construction of water infrastructure for improved operational efficiency, and expansion of sewerage and sanitation services.