Residents in the West Zone will have adjusted water rates as Maynilad Water Services, Inc. (Maynilad) implements a slight increase in its Foreign Currency Differential Adjustment (FCDA) starting April 2016.
Maynilad customers consuming 10 cubic meters or less every month will see their water bill increase by ₱0.15 from ₱115.76 to ₱115.91, while those consuming 20 cubic meters every month will see their water bill increase from ₱433.57 to ₱434.14, a difference of ₱0.57. Meanwhile, households consuming 30 cubic meters a month will note an increase of ₱1.17 in their water bill, from the current ₱885.02 to ₱886.19.
The increase in water tariff for Maynilad customers is due to an upward adjustment in the FCDA for the second quarter of 2016, following the depreciation of the Philippine peso. The adjustment—equivalent to ₱0.12 per cubic meter (cu.m.) or 0.34% of the Average Basic Charge of ₱33.87/cu.m.—shall be effective from April 1 to June 30, 2016. This adjustment is higher by ₱0.05 per cubic meter compared to the FCDA in the first quarter of 2016.
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-denominated Concession Fees to the Metropolitan Waterworks and Sewerage System (MWSS), as well as loans to fund projects that will improve service for its customers.
Maynilad projects include the construction of new water infrastructure to enhance efficiencies and reduce water losses, and expansion of sewerage and sanitation services to help protect community health and the environment.
Maynilad is the largest private water concessionaire in the Philippines in terms of customer base. It is the agent and contractor of the Metropolitan Waterworks and Sewerage System (MWSS) for the West Zone of the Greater Manila Area, which is composed of the cities of Manila (certain portions), Quezon City (certain portions), Makati (west of South Super Highway), 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.