Reprieve for Maynilad customers

The regulator Metropolitan Waterworks and Sewerage System (MWSS) has announced that its board of trustees had cleared the implementation of the foreign currency differential adjustment (FCDA) for the July to September period.

This means customers of Maynilad Water Services Inc. will see a slight reduction in their water bills in the third quarter, while rates of Manila Water will remain unchanged.

Maynilad and Manila Water are the concessionaires or monopolies of water services in Metro Manila.

Maynilad is owned by Metro Pacific Investments, DMCI Holdings and Marubeni Corp. while Manila Water Company is majority-owned by Enrique Razon.

The FCDA is a quarterly-reviewed tariff mechanism that allows Manila Water and Maynilad Water Services Inc. to recover losses or give back gains following movements in the value of the peso against foreign currencies.

The water providers have to settle foreign currency-dominated loans that are used to finance expansion and enhancement involving their water and sewerage services.

Based on the decision, Maynilad rates will fall by 12 centavos per cubic meter. It is the water and wastewater services provider for the West Zone, covering 17 cities and municipalities in Metro Manila and Cavite.

Manila Water, meanwhile, will have no rate adjustments. The firm serves the east zone network of Metro Manila, covering parts of Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several towns in Rizal province.