Slight tariff reduction for Maynilad customers by April

Beginning April 1, 2018, the water tariff for Maynilad customers will be slightly reduced due to the appreciation of the Philippine peso against foreign currencies.

 

In a Metropolitan Waterworks and Sewerage System (MWSS) Board Resolution dated March 8, 2018, Maynilad was granted a Foreign Currency Differential Adjustment (FCDA) of 0.55% of the Basic Charge of ₱35.48 per cubic meter (cu.m.), or an average reduction of ₱0.20/cu.m. This is lower than last quarter’s FCDA of 0.60% of the Basic Charge.

 

For Maynilad residential customers who consume 10 cu.m. of water a month, the second quarter FCDA will translate to a decrease of ₱0.06 in their monthly water bill. Meanwhile, those consuming 20 cu.m. and 30 cu.m. of water per month will see a reduction of ₱0.22 and ₱0.46 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. This is because Maynilad pays for the foreign-dominated loans of the Metropolitan Waterworks and Sewerage System (MWSS), as well as for its own loans used to fund projects that will improve service for its customers.

 

Maynilad is an 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 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.