In a decision dated 29th December 2014, the Appeals Panel of the Metropolitan Waterworks and Sewerage System (“MWSSâ€) and Maynilad Water Services, Inc. (“Mayniladâ€) upheld the alternative rebasing adjustment of Maynilad.  This will result in a 9.8% increase in the 2013 average basic water charge of P31.28/cu.m., inclusive of the P1.00 Currency Exchange Rate Adjustment which the MWSS has now incorporated into the basic charge (the “Awardâ€).
The Award translates to an average increase of P3.06/cu.m. Â For a typical household whose monthly water consumption is 20 cu.m., this would mean an increase in the average water charge of P1.68/cu.m.
Maynilad President, Ricky Vargas, said that “This decision confirms that the Concession Agreement works, and restores investor confidence in the public-private partnership program of the Government.  This also ensures the continued implementation of Maynilad’s capital expenditure projects that are intended to benefit further our customers.â€
While there has been a two (2)-year delay in implementing an adjustment in the average basic water charge—the Concession Agreement between MWSS and Maynilad expressly provides for a one-time implementation of a positive rebasing adjustment—Maynilad is willing to implement the increase on a staggered basis, subject to the approval of the MWSS, in order to mitigate the impact of the Award on its customers in the West Zone of Metro Manila.