Manila Water rates to go down

MANILA, Philippines - Water rates in eastern part of Metro Manila will go down slightly next month following the strengthening of the peso against the US dollar and other currencies.

In a disclosure to the Philippine Stock Exchange, Ayala-led Manila Water Co. Inc. said effective July 2, it will reduce water rates by one centavo, or to P0.21 from P.022 per cubic meter. 

 “This was the result of the strengthening of the peso versus other foreign currencies based on the exchange rate of $1:P49.186 to $48.217,” Manila Water said.

The adjustment in foreign currency differential adjustment (FCDA) was approved by the Metropolitan Waterworks Sewerage System on June 11.

Residential customers consuming 10 cubic meters or less a month will be exempt from the FCDA as part of the government’s program to protect low-income households.

The FCDA, which was recently approved by the Metropolitan Waterworks Sewerage System, is a pass-through mechanism which allows Manila Water to recover its foreign currency losses or pass on foreign currency gains, resulting from payments of concession loans and foreign currency-denominated borrowings which were used to fund its service expansion program and improvement. 

“Such tariff adjustments have no real significant impact on the projected net income of Manila Water,” the utility firm said.

Manila Water said it continues to undertake service improvement and rehabilitation programs to further improve service levels in areas with 100 percent water coverage: the southeastern part of Quezon City, Mandaluyong City, San Juan, Marikina, Pasig City, Pateros, Manila, and Makati City (east of Osmeña Highway). – Zinnia dela Peña