Maynilad to reduce water bills in January
December 15, 2015
Residents in the West Zone will experience a decrease in their monthly water bill effective January 1, 2016 as Maynilad Water Services, Inc. (Maynilad) implements a reduction in its Foreign Currency Differential Adjustment (FCDA) beginning first quarter of 2016.
This reduction in Maynilad’s tariff is due to the downward movement in the FCDA despite the P0.27/cu.m. average basic rate adjustment owing to the 0.80% increase in Consumer Price Index (CPI) this year.
For Maynilad’s residential customers consuming an average of 10 cu.m. per month or less, the adjustment will translate to a reduction of P0.64 in their monthly water bill. Those consuming 20 cu.m. per month will see a monthly bill reduction of P2.43, while those consuming 30 cu.m. per month will have P5.04 less in their monthly bill.
The FCDA adjustment—equivalent to P0.07 per cubic meter (cu.m.) or 0.21% of the newly approved Average Basic Charge of P33.87/cu.m.—shall be effective from January 1, 2016 to March 31, 2016. This adjustment is lower by P0.46 compared to the fourth quarter FCDA of 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.