Business

Water rates going down in October

Customers of Manila Water and Maynilad Services will enjoy a relief in their monthly billings starting October due to fluctuations in the foreign exchange rate.

The Metropolitan Waterworks and Sewerage System approved a foreign currency differential adjustment (FCDA) of P0.33 per cubic meter or 1.17% of its 2020 average basic charge of P28.58 per cubic meter.

This adjustment translates to monthly savings of P0.78, P1.73 and P3.52 for Manila Water customers consuming 10 cubic meters, 20 cubic meters and 30 cubic meters per month, respectively.

Maynilad customers will also see a reduction in their monthly bills. For those consuming 10 cubic meters or less, their bills will go down by P0.06 while those consuming 20 and 30 cubic meters per month are expected to see a decline of P0.24 and P0.50, respectively, on their bills in the coming quarter.

The FCDA is a quarterly-reviewed tariff mechanism that allows utility firms to recover losses or give back gains arising from fluctuations in foreign exchange rates, as payments are made for foreign currency- denominated loans that are used to fund the expansion and improvement of water and sewerage services.

It is a corrected mechanism formulated by the MWSS to avoid under recovery or over recovery caused by forex movements.

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