BEGINNING April 1, 9.4 million consumers of the west zone Maynilad Water Services Inc. may expect a slight reduction in their water tariff due to the appreciation of the Philippine peso against foreign currencies.
On March 8, the Metropolitan Waterworks and Sewerage System passed a board resolution granting Maynilad a foreign currency differential adjustment (FCDA) of 0.55 percent of the basic charge of P35.48 per cubic meter, or an average reduction of P0.20 per cu.m.
"This is lower than last quarter’s FCDA of 0.60 percent of the basic charge," Maynilad said.
For Maynilad residential customers who consume 10 cu.m. of water a month, the second quarter FCDA will translate to a decrease of P0.06 in their monthly water bill.
Those consuming 20 cu.m. and 30 cu.m. of water per month will see a reduction of P0.22 and P0.46 in their monthly water bill, respectively.
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.
Since Maynilad pays for the foreign-dominated loans of the Metropolitan Waterworks and Sewerage System, as well as for its own loans used to fund projects that will improve service for its customers, it periodically receives differential adjustments based on the current value of foreign currency.
Maynilad is an agent and contractor of the Metropolitan Waterworks and Sewerage System for the West Zone of the Greater Manila Area, which is composed of the cities of Manila (certain areas), Quezon City (certain areas), Makati (certain areas), Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon—all in Metro Manila; the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario—all in Cavite province.