The Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS RO) confirms that there will be no tariff adjustment on customers’ water bills this 3rd quarter of 2020. The MWSS Board of Trustees (BOT) has recently approved the recommendation of the MWSS RO to retain the prevailing 2nd quarter Foreign Currency Differential Adjustment (FCDA) this upcoming quarter based on its evaluation of the FCDA proposals of the Concessionaires.
Manila Water Company, Inc. (MWCI) will continue to implement an FCDA of 1.69% of its 2020 Average Basic Charge of Php28.52 per cubic meter or Php0.48 per cubic meter. Maynilad Water Services, Inc. (MWSI) will continue to apply an FCDA of negative 0.21% of its 2020 Average Basic Charge of Php36.24 per cubic meter or negative Php0.08 per cubic meter.
The FCDA is a quarterly-reviewed tariff mechanism that allows Concessionaires to recover losses or give back gains arising from fluctuations in foreign exchange rates, as payments are made for foreign currency-denominated loans that are used to fund the expansion and improvement of water and sewerage services. It is a corrective mechanism formulated by the MWSS RO to avoid under recovery or over recovery caused by forex movements.
(MWSS-PR)
