Manila Water to exclude FCDA from water charges

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Beginning November 18, 2021, the Foreign Currency Differential Adjustment (FCDA) will no longer be applied to water rates of Manila Water customers. This is also the effectivity date of the Revised Concession Agreement (RCA) of the Government with the East Zone Concessionaire. The RCA stipulates the exclusion of FCDA from charges billed to customers. Currently, the effective FCDA is 0.84% of the basic charge or equivalent to Php0.24. From November 18 onwards, this will revert to zero (0). The total weighted average tariff including VAT will decrease by Php0.32 to Php 38.33 per cubic meter.

This adjustment translates to almost Php6.00 decrease in the monthly bill of residential customers consuming an average of thirty (30) cubic meters per month, from current charge of Php684.00 to Php679.00 after Nov. 18. For semi-business customers consuming the same, monthly bill after Nov. 18 will be Php833.00 from the current charge of Php840, or a Php7.00 reduction. Regular residential customers consuming ten (10) cubic meters or less per month will have a reduction of Php1 in their monthly bills, to Php151.00 per month.

The FCDA is a tariff mechanism formulated to account for foreign exchange losses or gains arising from the payment by Manila Water of concession loans and foreign-currency denominated borrowings of MWSS, as well as loans of the Company for service expansion and improvement of its services. The tariff adjustment does not affect nor improve the profitability of the company as it has no impact on its projected net income. The FCDA charge shall be removed from the customer bills in their next full billing cycle after November 18.

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