Customers of Maynilad Water Services Inc. and Manila Water Company Inc. will pay higher water rates this quarter after the Metropolitan Waterworks and Sewerage System approved the third quarter foreign currency differential adjustments of both companies.
The FCDA in the third quarter now stands at 3.92 percent of the P24.81 basic charge, or P0.98 per cubic meter, up from the previous quarter’s P0.69 per cubic meter.
The adjusted rates will be effective on August 13. The peso closed Friday at 50.57 against the US dollar.
Manila Water customers who are consuming 10 cubic meters per month or less are exempt from the adjustment and will continue to pay just P79.81 a month.
For regular customers consuming 10 cubic meters, their monthly bill will increase by P1.46.
Those consuming 20 cubic meters per month will have an increase of P3.24 while those consuming 30 cubic meters per month will pay an additional P6.61.
Manila Water customers classified as semi-business and consuming 10 cubic meters per month or less are expected to have an increase on their monthly bills of P1.46, while the monthly bills of those consuming 20 cubic meters per month and 30 cubic meters per month will go up by P4.44 and P8.11, respectively.
Meanwhile, the MWSS approved the FCDA of Maynilad equivalent to P0.27 per cubic meter, or 0.80 percent of the average basic charge of P34.51 per cubic meter.
The impact of the FCDA on the monthly bills of residential customers is of P0.13 for those consuming 10 cubic meters per month or less; P0.48 for those consuming 20 cubic meters per month; and P 0.99 for those consuming 30 cubic meters a month.
The MWSS in 1997 signed concession agreements with Manila Water for the East Service Area and Maynilad for the West Service Area.
An amendment to the concession agreements of Manila Water and Maynilad with MWSS provides the FCDA as a tariff mechanism to recover or compensate for fluctuations in foreign exchange rates.
A three-man arbitral tribunal early this week unanimously upheld Maynilad’s claim against the government and ordered the state to pay P3.42 billion for delayed tariff increases from March 11, 2015 to August 31, 2016.
Maynilad said the tribunal, in a decision dated July 24, upheld the validity of its claim against the undertaking letter issued by Finance Department to compensate the company for the delayed implementation of tariffs for the rebasing period 2013 to 2017.
The undertaking letter provides that the government will indemnify Maynilad for any losses due to a delay attributable to the state or any government-owned agency in implementing any increase in standard rates, beyond the date of its implementation in accordance with the concession agreement signed on Feb. 21, 1997.
The tribunal ordered the government to reimburse Maynilad the amount of P3,424,690,000, without prejudice to any rights that Maynilad may have to seek recourse against MWSS for losses incurred.
Maynilad president and chief executive Ramoncito Fernandez said the amount would not be shouldered by consumers.