Manila Water rates to go down effective October 1 due to FCDA
The Board of Trustees of the Metropolitan Waterworks and Sewerage System (MWSS) has approved the fourth-quarter Foreign Currency Differential Adjustment (FCDA) of 1.17% of the basic charge, equivalent to P0.33 per cubic meter, effective October 1, 2020.
Manila Water customers will experience a tariff reduction of P0.15 per cubic meter, or a decrease of 0.52% versus the second-quarter 2020 FCDA of 1.69% of the basic charge or P0.48 per cubic meter.
Residential customers consuming 30 cubic meters per month will experience a decrease from P690 to P687 in their monthly bill, while those consuming 20 cubic meters per month will experience a decrease from P339 to P337. Non-lifeline or regular residential customers consuming 10 cubic meters per month shall pay P153 in their monthly bill versus P154 in the previous quarter.
Lifeline customers or low-income residential customers consuming 10 cubic meters or less per month, who are normally exempt from the adjustment, will continue to pay the lifeline rate of P87 per month.
The FCDA is a quarterly-reviewed tariff mechanism formulated to account for foreign exchange losses and/or gains arising from the payment of Manila Water of foreign currency-denominated borrowings of MWSS, as well as of Manila Water, for service expansion and improvement of services.
The FCDA is only a pass-through device and has no impact on the projected net income of the company.