Vol. XXII, No. 133 [ BusinessWorld Online ]
Friday, February 6, 2009 | MANILA, PHILIPPINES
BY AVA KASHIMA K. AUSTRIA, Reporter
CONSUMERS will have to deal with higher water bills as water concessionaires hike their rates due to inflation and exchange rate fluctuations.
The rate increases, said Metropolitan Waterworks and Sewerage System (MWSS) Administrator Diosdado Jose M. Allado, will take effect on February 20 for Manila Water Co. and February 19 for Maynilad Water Services, Inc.
For Manila Water, the increase will be P2.27 per cubic meter (cu.m.) while Maynilad will charge a higher P2.81/cu.m. The adjustments will be reflected in consumers’ March bills.
The changes reflect a 12.2% Consumer Price Index (CPI) while Manila Water also added 1.03% of the basic charge as a Foreign Currency Differential Adjustment (CPI).
The CPI adjustment is done annually to account for inflation as published by the National Statistics Office. The FCDA, meanwhile, allows utilities to recover losses or give back gains from the exchange rate fluctuations. Changes are made quarterly.
For a Manila Water customers using 30 cu.m. monthly, the added cost will be P49. For Maynilad customers consuming the same amount, the increase will be P58 per month.
The increase will not affect around three million households — 1.5 million customers for Manila Water and 1.6 million customers for Maynilad — consuming 10 cubic meters and below monthly. Manila Water has around five million customers while Maynilad has eight million.
The MWSS’ Mr. Allado said the increases were not connected to rate hikes both water firms had wanted to implement this year.
"The hike for basic charge is still frozen for the year, the current adjustments are automatic mechanisms," he said.
The MWSS last month disallowed both firms’ petitioned rate hikes pending a review of possible contract term extensions.
__________________________________________________________________________
