Manila Water to impose rate hike, Maynilad to defer

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Manila Water plans to charge an additional 1.39% of its 2025 average basic charge of P47.10 per cubic meter, which means an additional 65 centavos per cubic meter will be added to the total cost

MANILA, Philippines – The Metropolitan Waterworks and Sewerage System (MWSS) approved water bill rate hikes in the second quarter of 2025.

Concessionaires Manila Water and Maynilad may implement rate hikes to reflect the Foreign Currency Differential Adjustment (FCDA). However, only Manila Water will implement the rate hike beginning April, while Maynilad chose to defer.

“The FCDA is a quarterly reviewed-tarrif 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,” MWSS Chief Regulator Patrick Lester Ty said in a statement on Thursday, March 13.

According to the regulator, Manila Water submitted an FCDA petition for the second quarter last January 20. It plans to charge an additional 1.39% of its 2025 average basic charge of P47.10 per cubic meter, which means an additional 65 centavos per cubic meter will be added to the total cost.

The Ayala-led concessionaire serves 7.3 million customers in 23 cities and municipalities located in the east of Metro Manila and Rizal province.

Jeric Sevilla, head of Manila Water’s corporate communications, said the increase will be effective beginning April 1, 2025. He said some of Manila Water’s infrastructure, such as its treatment plans, and its equipment are sourced overseas and are funded by loans.

“Kinakailangan nating mangutang para ma-fund ‘yung ating mga capital expenditure program (We need to borrow money to fund our capital expenditure program),” Sevilla said in an interview with DzBB on Thursday, March 13.

However, he noted that there is a possibility that the company will implement another adjustment if the peso starts appreciating against the dollar, or the currencies of Manila Water’s other loans — which are in yen and euros. This means that upon review next quarter or in the next three months, there is a possibility that that the company will adjust their rates lower. – Rappler.com