Metropolitan Waterworks and Sewage System said that a possible higher water bill is expected at the beginning of January 2023.
Metropolitan Waterworks and Sewage System (MWSS) recently announced that consumers should prepare for a potential increase of water bills in January 2023 as an effect of the Philippine peso’s depreciation against the United States (US) dollar.
MWSS Regulatory Office chief regulator Patrick Ty emphasized that the drop in the value of the peso which closed at ₱58.98 against the dollar will have an effect on the rate rebasing effective next year.
Every five years, rate rebasing is performed to establish the maximum rates that water concessionaires Manila Water and Maynilad may charge for their services, CNN News reported.
“All losses for foreign currency would be included during the rate rebasing that is ongoing right now, and that will have an effect on the rates this coming January 1, 2023,” Ty said.
To lessen the impact on customers, MWSS will try to spread out the rate increase over the following five years.
“We’re hoping na in the next few years ay mag-rerecover ang ating peso versus the dollar and other foreign currency, at ito ay ma-spread out at hindi po masyadong mabigat sa ating consumers,” Ty added.
Ty stressed that the basis for the expected increase in the foreign currency differential adjustment (FCDA) is a tariff mechanism that enables concessionaires to recoup the losses or refund gains due to fluctuations in foreign exchange rates.
Meanwhile, last November 2021, Ty clarified that the revised concession agreement is not yet in effect despite MWSS’s announcement that it will remove the FCDA from customers’ water bills. He further said that modifications based on the FCDA will only be included in the rate rebasing in lieu to implement the FCDA mechanism every quarter.
MWSS will hold a public information drive and a series of public consultations this October 2022 where the results of the rebasing will be announced, he added.
He continued saying the results of the rebasing will be disclosed at a public information campaign and several public consultations held by MWSS in October.
Tags: #PesoDepreciation, #MWSS, WaterRateHike