Consumers to face higher water rates next month

The government allowed the country's major private utilities — Maynilad Water Services, Inc. (Maynilad) and Manila Water Corp. (MWC) — to jack up water rates starting next month due to several factors such as higher prices of goods and the depreciation of peso.

Beginning January 1, 2018, residents in the West Zone consuming 10 cubic meters or less every month (lifeline customers) will see their water bill increase by R2.70 from R118.95 to R121.65, while those consuming 20 cubic meters every month will see their water bill increase from R445.56 to R455.74, a difference of R10.18.

Households consuming 30 cubic meters a month, on the other hand, will experience an increase of R20.78 in their water bill, from the current R909.54 to R930.32.

This, as Maynilad implements an average basic rate adjustment of R0.97 per cubic meter (/cu.m), equivalent to 2.80 percent of the R34.51 per cu.m. average basic charge in 2017, which represents the Consumer Price Index (CPI) adjustment.

The Metropolitan Waterworks and Sewerage System (MWSS) also granted Maynilad a Foreign Currency Differential Adjustment (FCDA) equivalent to 0.60 percent as applied to the newly approved 2018 Average Basic Charge of R35.48 per cu.m., beginning 1st quarter of 2018.

"Despite the down-

ward adjustment of an average of R0.17 per cu.m. in the FCDA, the overall impact of the CPI and FCDA adjustments is an increase in the monthly water bills of Maynilad customers for the 1st quarter of 2018," Maynilad said.

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 foreign-dominated Concession Fees to MWSS, as well as loans to fund service improvement projects.

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.

Meanwhile, both MWC and its subsidiary Boracay Island Water Company, Inc. have been given the green light to implement an increase in their water rates.

For MWC, regular customers consuming 10 cubic meters will have to pay an increase of R139 per month, a R0.61 increase from the previous R138 per month.

Consumers with a monthly consumption of 30 cubic meters, on the other hand, will now pay R623, which is R2.66 higher than the previous quarter’s R620.

Lifeline customers or low-income households consuming 10 cubic meters or less are exempt from the adjustment and will continue to pay only R82 per month.

MWC provides water and used water services to the following ar- eas: Mandaluyong, Pasig, San Juan, Marikina, Pateros, Taguig, Makati, southeastern part of Quezon City and San Andres and Sta. Ana in Manila including several towns of Rizal Province which include San Mateo, Rodriguez, Antipolo, Cainta, Taytay, Angono, Binangonan, Baras and Jalajala.

A separate disclosure in the local bourse also showed that Tourism Infrastructure and Enterprise Zone Authority-Regulatory Office (TIEZARO) already approved the implementation of the second of three tranches of new water rates of the Boracay Island Water Company, Inc.

Boracay Island is a subsidiary of Manila Water Philippine Ventures, Inc. (MWPV), a wholly owned arm of MWC.

The new rates will be effective 15 days after its publication in newspapers.