Water rates to go down starting April 1
Metropolitan Waterworks and Sewerage System (MWSS) said there would be a slight reduction in water rates starting April due to the appreciation of peso in January.
MWSS Chief Regulator Patrick Ty said that MWSS Board already approved the Foreign Currency Differentials Adjustment (FCDA) in the second quarter rates of Maynilad Water Services, Inc. (Maynilad) and Manila Water Corp. (MWC).
“I understand that the rollback is very, very minimal but [at least] we were able to take advantage of the historical strenght of the peso recorded in January. Because of that, there’s a rollback, instead of an increase,” Ty said.
According to him, this is the first time there’s going to be a rollback in water rates since he became the MWSS Chief Regulator in August last year.
FCDA is a tariff mechanism granted to utility companies to allow them to recover losses or give back gains arising from the fluctuating movements of the peso against other currencies. It is approved every quarter.
Ty said an average downward adjustment of P.04 per cubic meter (/cu.m) for Manila Water and P.01 got Maynilad will bring down the cost of water to residential customers.