Manila Water customers to see higher rates in October

MANILA, Philippines — Customers of Manila Water Company, Inc. will see higher rates on their bills to reflect recent swings in foreign exchange rates.

In a disclosure to the stock exchange Monday, the Ayala-led utility company said it will have a Foreign Currency Differential Adjustment, or FCDA, of P0.69 per cubic meter effective October 13.

Manila Water said the adjustment was based on the weakening of the peso against the US dollar and the Japanese yen.

"The FCDA component of the water bill will be adjusted to 2.43% of the basic charge," the company said.

The FCDA is a tariff mechanism formulated to account for foreign exchange losses or gains arising from the company’s payment of concession loans and foreign currency-denominated debt. The company borrows money to improve and expand its services.

For Manila Water, the impact of the fourth-quarter FCDA adjustment is a P0.93 per month increase for those consuming 10 cu.m. or less, except lifeline customers, who are exempt from the quarterly charges.

The monthly bills of those consuming 20 cu.m. per month and 30 cu.m. per month will increase by P2.06 and P4.20, respectively.

“The FCDA has no impact on the projected net income of the company,” Manila Water said.

Manila Water provides water and wastewater services to the east zone concession areas covering the municipality of Pateros, as well as the cities of Makati, Mandaluyong, Pasig, San Juan, Taguig and Marikina.

FROM BUSINESSWORLD: NCR water rates to increase

— Ian Nicolas Cigaral with a report from BusinessWorld