Private concessionaires Maynilad Water Services Inc. and Manila Water Company Inc. will reduce the water rates in their franchise areas beginning Jan. 1, 2016.
Maynilad, which serves the west zone, said its rates would go down by P0.19 per cubic meter, mainly due to a reduction in the so-called foreign currency differential adjustment.
Manila Water, the east zone concessionaire, said it would reduce the rates by P0.26 per cubic meter, reflecting the lower basic charge ordered by the appeals panel earlier this year.
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.
Maynilad and Manila Water pay foreign-dominated concession fees to state-run Metropolitan Waterworks and Sewerage System as well as loans to fund projects.
Maynilad said the reduction was due to the downward movement in the FCDA despite the P0.27 per cubic meter average basic rate adjustment owing to the 0.80 percent increase in consumer price index this year.
Maynilad said for residential customers consuming an average of 10 cubic meters a month or less, the adjustment would translate to a reduction of P0.64 in their monthly water bill.
Customers consuming 20 cubic meters a month would see a monthly bill reduction of P2.43, while those consuming 30 cubic meters would pay P5.04 less than their previous monthly bill.
“This reduction in Maynilad’s tariff is due to the downward movement in the FCDA despite the P0.27/cu.m. average basic rate adjustment owing to the 0.8 percent increase in consumer price index this year,” Maynilad said.
The FCDA adjustment equivalent to P0.07 per cubic meter or 0.21 percent of the newly approved average basic charge of P33.87 per cubic meter would apply on Jan. 1, 2016 to March 31, 2016.
Meanwhile, Manila Water said the new rates would incorporate the reduction ordered by the appeals panel early this year, the adjustment based on inflation and the FCDA.
Manila Water said the monthly bill of lifeline costumers consuming 10 cubic meters or less would have a reduction of P1.11.
Those consuming 20 cubic meters would have a monthly reduction of P3.06 while those who consume 30 cubic meters a month would see a reduction of P6.36 in their monthly bills.
