Maynilad Water Services, Inc. customers will see a slight increase in their water bills starting in July, following the Metropolitan Waterworks and Sewerage System Regulatory Office’s (MWSS RO) approval of the third-quarter Foreign Currency Differential Adjustment (FCDA).

At a media briefing on Friday, MWSS RO Chief Regulator Patrick Lester Ty said Maynilad, which serves the West Zone, will raise rates by P0.01 for those consuming 10 cubic meters (cu.m) or less, P0.05 for 20 cu.m or less, and P0.11 for 30 cu.m or less.

Maynilad will apply an FCDA of -0.64 percent of its 2025 average basic charge of P52.40 per cu.m, or -P0.329 per cu.m. It will reflect a slight upward adjustment from the second quarter’s -P0.334 per cu.m, resulting in an average increase of P0.005 per cu.m.

Meanwhile, Manila Water Co. customers in the East Zone will benefit from a lower FCDA. Those consuming 10 cu.m or less will see a P0.55 decrease in their bills, P1.20 for 20 cu.m or less, and P2.45 for 30 cu.m or less.

Manila Water will apply an FCDA of 1.12 percent of its 2025 average basic charge of P47.10 per cu.m, or P0.53 per cu.m, down by P0.12 from the previous quarter’s P0.65 per cu.m.

The FCDA is a quarterly tariff mechanism that adjusts rates based on foreign exchange fluctuations.

"“It is a corrective mechanism formulated by the MWSS RO to avoid under-recovery or over-recovery caused by forex movements,” Ty said.

According to Ty, the difference in FCDA adjustments for Maynilad and Manila Water is due to the movement of the peso against various foreign currencies, and the distinct composition of each company’s foreign currency loan portfolio.

The peso weakened against the euro and yen but strengthened against the US dollar. Manila Water has more euro-denominated loans, while Maynilad has more yen loans. As a result, the forex shifts affected each company differently, leading to opposite rate adjustments for the third quarter.