Starting 1 April this year, Manila Water customers pay 4 centavos more per cubic meters a month due to adjustments in the foreign currency differential or FCDA component of their water bills as confirmed Thursday by the Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO). The adjustment, arising from fluctuations in currency exchange rates, will impact consumers differently, with regular users seeing hikes of up to P0.90 per month, even as enhanced lifeline and low-income users remain exempt.
Manila Water, which serves the East Concession area, will raise its rates by 1.39 percent on the 2025 average basic charge of P47.10 per cubic meter. The increase varies depending on consumption, with those using 10 to 30 cubic meters a month seeing increased charges. The company assures that the adjustments reflect current economic conditions and prevent the accumulation of excessive future hikes.
In contrast, Maynilad has chosen to defer its own 9-centavo FCDA increase, which would have affected customers beginning in April as well. The company said the deferment was meant to ease the financial burden on consumers, with the adjustment now planned for the third quarter instead.
Both Manila Water and Maynilad are adjusting water rates to recover costs in servicing foreign currency-denominated loans that financed infrastructure improvements. The adjustments are part of the regular quarterly tariff mechanisms regulated by MWSS-RO, which ensures the water service providers continue investing in essential water and wastewater services.
Economists in the Philippines have estimated that water services, grouped under the housing, electricity, water, gas, and other fuels of the consumer price index (CPI) that collectively account for 22 percent of the basket, answer for roughly 0.6 percent of that same basket as of 2022.
The weight changes over time as a result of periodic changes in the CPI basket and factors such as consumer spending behavior, economists said.
