RATE hikes of both the Manila Water Company and Maynilad Water Services Inc. have been approved by the Metropolitan Waterworks and Sewerage System (MWSS) next year.
MWSS Regulatory Office chief regulator Patrick Lester Ty on Wednesday said the adjustments that will be implemented — an average ranging from P6.41 to P7.87 per cubic meter (/cu.m.) — starting January 2024 take into consideration inflation, as well as the spending program undertaken by the water concessionaires.
“We did the tariff adjustments in tranches to ensure that the public will be protected and it will not be too burdensome to do it all in one go, [and] to ensure that Manila Water and Maynilad will be doing their capex (capital expenditure) rollout projects and ahead of schedule actually, hopefully,” he said.
He added that, “Part of the reason is we need to prepare for the El Niño that will be happening in 2024… and we have started preparing for that, and we have directed Manila Water and Maynilad to ensure that there will be no water crisis and to mitigate all the effects of El Niño next year.”
As part of the second tranche of the rate rebasing, both concessionaires will be able to hike their rate from 2023 to 2027 provided that they meet MWSS’ criteria such as spending for programs that ensure water security. The first tranche was implemented earlier this year.
East zone concessionaire Manila Water has been given the go-ahead to hike the average basis charge by P6.41/cu.m. to P42.26/cu.m. in 2024 from P35.85/cu.m. this year. The adjustment includes P1.27/cu.m. for inflation, and P5.14/cu.m. for its spending program.
This will translate to an estimated upward adjustment of P2.96 per month for low-income lifeline customers, P34.12 for those consuming 10 cu.m. per month, P76.68 for those consuming 20 cu.m. per month, and P154.55 for those consuming 30 cu.m. per month.
On the other hand, west zone concessionaire Maynilad will hike its rates by P7.87/cu.m. to P47.57/cu.m. in 2024 from P39.70/cu.m. in 2023. This takes into account P1.40/cu.m. for inflation, and P6.47/cu.m. for capital spending.
The adjustments will translate into an additional P4.74 per month for low-income lifeline customers, P26.61 for regular lifeline customers, P100.67 for those consuming 20 cu.m. per month, and P205.87 for those consuming 30 cu.m. per month.
