RESIDENTS in the West Zone will experience a decrease in their monthly water bill effective January 1, 2016, as Maynilad Water Services Inc. (Maynilad) implements a reduction in its foreign-currency differential adjustment (FCDA) beginning the first quarter of 2016.
This reduction in Maynilad’s tariff is due to the downward movement in the FCDA despite the P0.27 per cubic meter average basic-rate adjustment, owing to the 0.8-percent increase in the consumer price index this year.
For Maynilad’s residential customers consuming an average of 10 cubic meters per month or less, the adjustment will translate to a reduction of P0.64 in their monthly water bill.
Those consuming 20 cubic meters per month will see a monthly bill reduction of P2.43, while those consuming 30 cubic meter per month will have P5.04 less in their monthly bill.
The FCDA—equivalent to P0.07 per cubic meter or 0.21 percent of the newly approved Average Basic Charge of P33.87/cubic meter—shall be effective from January 1, 2016, to March 31, 2016. This adjustment is lower by P0.46 compared to the fourth quarter FCDA of 2015.
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 the Metropolitan Waterworks and Sewerage System, as well as loans to fund projects that will improve service for its customers.