MANILA, Philippines - Starting April 1, water rates in Metro Manila will be reduced due to the foreign currency differential adjustment (FCDA), Manila Water announced yesterday.
The Ayala-led firm said it would implement an FCDA of five centavos per cubic meter based on the exchange rate of $1:P44.60.
The FCDA component of the water bill of Manila Water customers will be adjusted to 0.18 percent of the basic charge of P28.29 per cubic meter for the second quarter of the year.
This is lower by 31 centavos per cubic meter compared to the prevailing FCDA rate of 36 per cubic meter, which is 1.32 percent of the basic charge.
The company said the FCDA has no impact on its projected net income.
Manila Water spokesman Jeric Sevilla said lifeline consumers using 10 cubic meters of water per month would remain insulated from the adjustment, paying P83.14 monthly.
Regular consumers using 10 cubic meters of water monthly will pay only P137.68 from P139.23.
Customers using 20 cubic meters of water monthly will pay only P303.56 from P307.
Benchmark consumers using 30 cubic meters of water monthly will pay only P618.22 from P625.23.
The FCDA is a tariff mechanism determined by foreign exchange rate movements in loan payments of water concessionaires for the current year, and expressed as a percentage of the basic charge.
The Metropolitan Waterworks and Sewerage System reviews the FCDA quarterly.
Aside from FCDA, the water bill in Metro Manila includes the basic charge, currency exchange rate adjustment, environmental charge, sewerage charge (for business connections), maintenance charge and value- added tax.
Manila Water services the Metro Manila east zone concession area that covers parts of Quezon City and Makati as well as the southeastern parts of Manila, Taguig, Pateros, Marikina, Pasig, San Juan, Mandaluyong and Rizal province.
It services more than 6.3 million residents in its east zone concession area alone.