Because of the strong performance of the peso for the past months, the Metropolitan Waterworks and Sewerage System (MWSS) allowed Maynilad to lower its FCDA effective the 3rd quarter by 0.32 % of the average basic rate of P27.24 per cubic meter or P0.09 per cu.m.
With this reduction, a Maynilad residential customer consuming 10 cubic meters of water per month and who normally pays P97.03 will only pay P96.79, or a savings of P0.24 per month. There are around 230,000 households or 1.2 million people in the West Zone who fall under this category.
Meanwhile, the FCDA reduction will translate to a decrease of P1.55 in the monthly water bill of a family of five consuming an average of 30 cubic meters of water per month.
FCDA is a tariff mechanism that is granted to utility companies with foreign currency denominated loans assumed from the government or secured by the private companies, to allow them to recover or compensate for fluctuations in the foreign exchange rates.
Maynilad pays foreign-dominated Concession Fees to the MWSS, as well as loans to fund projects that will expand and modernize water and sewerage services for its more than 775,000 household, commercial and industrial customers.
This reduced rate will be effective from July to September 2009. The FCDA rate is adjusted on a quarterly basis, depending on the trend of the peso value.