Water rates going up

MANILA, Philippines - Water rates in the east zone water concession in Metro Manila will be raised in the first quarter of 2015.

East zone water concessionaire Manila Water Co. Inc. said water rates in its service area would go up by 36 centavos per cubic meter based on exchange rates of $1 to P44.7979 and one yen to P0.4156.

In an exchange filing yesterday, the Ayala-led utilities firm said the adjustment is due to the Foreign Currency Differential Adjustment (FCDA) component of the regular billing.

The FCDA is a tariff mechanism allowing concessionaires of the Metropolitan Waterworks and Sewerage System (MWSS) to cope with foreign exchange losses or gains arising from payments of foreign currency-denominated borrowings used for expansion and service improvement.

The MWSS regulatory office ideally reviews the FCDA quarterly.

The water bill’s FCDA component would be adjusted to 1.32 percent of the basic charge for the first quarter of 2015.

In a text message, Manila Water spokesman Jeric Sevilla said: “But since FCDA is contractual obligation separate from arbitration, the MWSS decided to implement.” 

Manila Water last adjusted its water rates in the third quarter of 2013 when rates were reduced by P0.54 per cubic meter based on the exchange rate of $1 to P41.14 and JPY1 per P0.4221.

This rate stayed until the fourth quarter of the year because of   arbitration on the contention of metro water concessionaires on the rate reduction ruling of the MWSS late in 2013.

Water billing in Metro Manila also includes the basic charge, currency exchange rate adjustment, environmental charge, sewerage charge (for business connections), maintenance charge and value added tax.

Manila Water said the FCDA has no impact on the projected income of the company.

Manila Water services the Metro Manila east zone concession area   covering parts of Quezon City and Makati, the southeastern parts of Manila, Taguig, Pateros, Marikina, Pasig, San Juan, Mandaluyong and Rizal province with more than 6.3 million residents.