MWSS body recommends water rate hikes
THE REGULATORY OFFICE of the Metropolitan Waterworks and Sewerage System (MWSS) has recommended a tariff hike of 37 centavos and 70 centavos for Manila Water Co. and Maynilad Water Services, Inc. respectively.
This was confirmed by MWSS Chief Regulator Joel C. Yu to BusinessWorld, following a radio interview wherein he first discussed the recommendation.
According to Mr. Yu, his office submitted this for the MWSS board of trustees’ approval in December last year. The board has yet to approve the increases under the Duterte administration.
“We submitted our recommendation to the board. The board has yet to convene to take up this matter,” he said in a phone interview on Tuesday.
“There are two components to it. One is the change in the basic charge, then the change in the foreign currency differential adjustment ( FCDA),” he explained.
Mr. Yu said the basic charge is attributed to three main drivers: the annual adjustment to inflation rate, the periodic rate rebating, and the extraordinary price adjustment.
“In the concession agreement, we adjusted it to the rate equivalent to the inflation rate in the month of July of the previous year. And that is 1.9%,” he said.
Sought for comment, Jeric T. Sevilla, Jr., head of Manila Water’s Corporate Communications unit, said in an e-mail they will wait for the MWSS board’s decision.
“Manila Water will abide [ by] the decision of the MWSS RO and will wait for the confirmation and approval of the MWSS Board (which has yet to be appointed). Pending the Board approval, we will maintain status quo (meaning maintain current rates),” Mr. Sevilla also said.
Similarly, Maynilad would adjust rates after the board issues a resolution, but has released estimated adjustments, said Jennifer Casipit- Rufo, head of the company’s stakeholder communications.
“This year’s CPI adjustment is 1.90% and the Q1 2017 FCDA is 0.50%. The impact of these on the water bill of our Residential customers — which constitute the bulk of our customer base — is as follows: a P2.38 monthly increase per 10 cubic meters (cu.m.) of monthly consumption, P8.94 per 20 cu. m. and [ P] 18.40 each 30 cu.m.”
“These adjustments will only be implemented 15 days after publication of a formal notice in newspapers. We cannot publish said notice until the MWSS Board issues a Board Resolution that officially allows us to implement the tariff adjustments,” she said.
MWSS Board of Trustees last issued resolutions approving and confirming the recommendation of the MWSS Regulatory Office in June last year, which was implemented in the third quarter FCDA on July 1.
Since then, Manila Water kept the FCDA implementation of its 2016 Average Basic Charge of P24.89 per cu.m. or P0.25 per cu.m.
The impact of the third quarter FCDA on the monthly bills of residential customers is a decrease of P0.03 per month for those consuming 10 cubic meters or less and not belonging to lifeline customers; P0.06 per month for those consuming 20 cubic meters; and P0.13 per month for those consuming 30 cubic meters.
Maynilad, on the other hand, implemented since the third quarter last year an FCDA of 0.32% of its 2016 Average Basic Charge of P33.87 per cubic meter or P0.11 per cubic meter.