AS IF inflation and electricity bill shocks are not enough, the Manila Water Company Inc. hinted at “possible increase” in water bills in the last quarter of 2026 and the second taking place next year.
Manila Water spokesperson Jeric Sevilla, however clarified that the increase which forms part of the five-year (2023 to 2027) rate rebasing adjustments approved by the Metropolitan Waterworks and Sewerage System (MWSS) in 2022.
“Next year, come January, the last tranche of rate increase will be implemented,” Sevilla said during the Kapihan sa Manila Bay news forum in Manila.
The Manila Water official said the increase would be more than P1 per cubic meter.
For Manila Water, the approved rate increases were P8.04 starting 2023, P5 per cubic meter in 2024, P3.25 per cubic meter in 2025, P1.91 up to P3.00 per cubic meter in 2026, and between P1.05 and P1.08 per cubic meter come 2027.
The adjustments for the last quarter of the current year, he added, could change citing foreign currency fluctuations.
Moreover, he said, for the coming quarter, the will be recomputed as well to reflect foreign currency fluctuations.
“The Foreign Currency Differential Adjustment is being reviewed every quarter so we should expect by October 1, there will be a new FCDA,” Sevilla added.
The FCDA is a quarterly-reviewed tariff mechanism allowing water concessionaires to recover losses or give back gains arising from fluctuations in foreign exchange rates, as payments are made for foreign currency-denominated loans used to fund the expansion and improvement of water and sewerage services.
The MWSS Regulatory Office for its part defended the FCDA — “It is a corrective mechanism formulated to avoid under-recovery or over-recovery caused by foreign exchange movements.
“Will it go up or down? The basis will be the foreign exchange rates for [the third quarter]… What were the peso’s rate against the dollar, yen, euro? So that will be computed by the regulator,” Sevilla noted.
“If the peso appreciates against these foreign currencies, the FCDA will go down but if it depreciates it will go up,” he said.
Interestingly, the Philippine peso has been on its lowest levels against the US dollar since last month.
The Manila Water has the exclusive right to provide water and used water services to the east zone of the franchise area of the MWSS, which services 23 cities and municipalities in Metro Manila and the adjoining province of Rizal.
