Maynilad to raise rates in late April

MAYNILAD Water Services, Inc. will raise rates this month to reflect the impact of a weakening peso against other currencies as well as the overall increase in the prices of goods and services.

In a statement on Thursday, the company said starting on April 22, 2017, it will implement an increase in its foreign currency differential adjustment (FCDA). The water rate hike will also cover a 1.9% rise in consumer prices.

“The FCDA adjustment shall be effective from April 22 to June 30, 2017,” Maynilad said.

It said customers using 10 cubic meters or less every month will see their water bill rise to P118.48, up P2.60 from P115.88.

Those consuming 20 cubic meters a month will see their bill increase to P443.81 from P434.04, or difference of P9.77.

Households using 30 cubic meters monthly will see an increase to P905.95 from P885.99, or rise of P19.96.

“The increase in water tariff for Maynilad customers is due to two factors,” the company said.

First, it cited “the inflationary increase of 1.9% over the previous average basic rate of P33.87, which increased the average basic rate by P0.64 to P34.51 per cubic meter.”

“The FCDA will go up from 0.32%... to 0.69%, as a percentage of the new average basic rate of P34.51 to P0.24 per cubic meter,” it said about the second factor.

The adjustment to cover changes in foreign currency conversion was last implemented in the third 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,” Maynilad said.

The company said it is paying foreign-denominated concession fees to the Metropolitan Waterworks and Sewerage System ( MWSS), as well as loans to finance projects that will improve service for its customers in Metro Manila’s east zone.

“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,” it said.

Maynilad serves most of Manila, parts of Quezon and Makati Cities, as well as the cities of Caloocan, Pasay, Parañaque, Las Piñas, Valenzuela, Navotas and Malabon. Its franchise area includes the cities of Bacoor and Imus and the municipalities of Kawit, Noveleta and Rosario in Cavite.

Metro Pacific Investments Corp., which has a 52.8% stake in Maynilad, is one of three key Philippine units of Hong Kongbased First Pacific Co. Ltd., the others being Philex Mining Corp. and Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. —