Water bills for customers of Manila Water Company and Maynilad Water Services will slightly increase starting April after the Metropolitan Waterworks and Sewerage System approved the second-quarter Foreign Currency Differential Adjustment (FCDA).
The adjustment will raise the foreign exchange component of water tariffs in both concession areas due to movements in the peso that affect the utilities’ foreign currency-denominated loans used to fund water and wastewater projects.
In the East Zone served by Manila Water, the FCDA will increase to P0.39 per cubic meter from P0.35 in the first quarter, translating to an average increase of P0.04 per cubic meter.
In the West Zone, customers of Maynilad will see the FCDA move to -P0.13 per cubic meter from -P0.22 previously. While the charge remains negative, the change results in an average upward adjustment of P0.09 per cubic meter.
The MWSS Board of Trustees approved the recommendation of the MWSS Regulatory Office (RO) after evaluating the utilities’ petitions filed in January.
Patrick Lester N. Ty, chief regulator of the MWSS RO, said the mechanism ensures utilities can either recover losses or return gains from exchange rate movements tied to their foreign loans.
“The FCDA is a quarterly-reviewed tariff mechanism that allows the 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 wastewater services,” Ty said.
He added that the adjustment acts as a corrective measure to avoid under-recovery or over-recovery caused by foreign exchange fluctuations.
The MWSS Regulatory Office also urged low-income households to apply for the Enhanced Lifeline Program, which grants qualified customers exemption from the FCDA and reduced water rates.
Introduced in January 2025, the program covers beneficiaries of the Pantawid Pamilyang Pilipino Program who consume up to 20 cubic meters per month, aiming to keep water services affordable for vulnerable households despite periodic tariff adjustments.