Peso fall increases water rates
The two water concessionaires in Metro Manila said Monday they will increase the water rates next month, following the depreciation of the peso against the US dollar.
Maynilad Water Services Inc. said the water tariff in the west zone would rise by P0.53 per cubic meter with the upward adjustment in the foreign currency differential in the fourth quarter.
The adjustment, equivalent to 1.58 percent of the average basic charge of P33.60 per cubic meter, will take effect on Oct. 1 to Dec. 31, 2015.
Maynilad said there would be a minimal increase in the monthly bill of customers consuming 30 cubic meters and below.
Those consuming an average of 10 cubic meters per month or less would see their monthly bill rise by only P0.36, it said.
Those consuming 20 cubic meters a month will see a monthly bill increase of P1.37, while those consuming 30 cubic meters would have an additional P2.80 in their monthly bill, the west zone concessionaire said.
The peso lost 4.5 percent of its value against the US dollar since the start of the year, amid the volatilities in the financial markets. This forced the water firms to tap the FCDA mechanism under the agreement with state-run Metropolitan Waterworks and Sewerage System.
The peso closed Monday at 46.735 against the US dollar.
FCDA is a tariff mechanism granted to utility companies to allow it to recover losses or give back gains arising from the fluctuating movements of the peso against other currencies.
“This is because Maynilad pays foreign-dominated concession fees to the Metropolitan Waterworks and Sewerage System, as well as loans to fund projects that will improve service for its customers,” Maynilad said.
East zone concessionaire Manila Water Co. Inc. said it would also implement an FCDA of P0.05 per cubic meter, equivalent to 0.21 percent of the 2015 average basic charge of P25.25 per cubic meter effective next month.
It said this would translate into an increase of P0.17 per month for residential customers consuming 10 cubic meters or less.
Those consuming 20 cubic meters will have an increase of P0.39 per month while customers who consume 30 cubic meters will have an increase of P 0.79 a month, it said.
Maynilad provides water services in most of Manila, parts of Quezon and Makati cities, as well as the cities of Caloocan, Pasay, Parañaque, Las Piñas, Valenzuela, Navotas and Malabon in Metro Manila.
Maynilad also provides water services to the cities of Bacoor and Imus and the municipalities of Kawit, Noveleta and Rosario in Cavite.
Manila Water serves the east zone, including the cities of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig and Marikina. It is also in charge for the southeastern parts of Quezon City and Sta. Ana and San Andres in Manila. In Rizal province, the Manila Water services the municipalities of San Mateo, Rodriguez, Cainta, Taytay, Angono, Baras, Binangonan, Jala-jala, as well as City of Antipolo.