The FCDA, reviewed every quarter, allows water concessionaires to adjust rates based on foreign exchange fluctuations, as they repay foreign currency-denominated loans used for water and wastewater infrastructure improvements.
Manila Water customers will see higher water bills starting in April after the Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS RO) approved an increase in the Foreign Currency Differential Adjustment (FCDA) for the second quarter.
At a media briefing on Thursday, MWSS chief regulator Lester Patrick Ty said the adjustment, approved by the MWSS Board of Trustees on 12 March, will raise Manila Water’s rates by P0.65 per cubic meter, or 1.39 percent of the 2025 average basic charge of P47.10 per cubic meter.
The FCDA, reviewed every quarter, allows water concessionaires to adjust rates based on foreign exchange fluctuations, as they repay foreign currency-denominated loans used for water and wastewater infrastructure improvements.
“It is a corrective mechanism formulated by the MWSS RO to avoid under-recovery or over-recovery caused by forex movements,” Ty said.
Manila Water submitted its FCDA petition on 20 January, which was validated and approved by the MWSS RO. The adjustment applies to customers in the East Zone.
Meanwhile, Maynilad Water Services, Inc., which serves the West Concession Area, has agreed to defer any adjustments.
In 2024, Manila Water's net income surged 88 percent to P10.5 billion due to strong East Zone growth and higher earnings from its other Philippine businesses.
The company’s EBITDA reached a record P25.9 billion, with a 71 percent margin. Excluding non-recurring items, core net income rose 48 percent to P14.2 billion, while revenues grew 19 percent to P36.6 billion on higher billed volume and tariff adjustments. Operating costs remained at P11.8 billion.
East Zone revenues jumped 20 percent to P28.8 billion, boosted by tariff hikes and steady consumption growth.
