Maynilad to cut water bills in Q3 on peso strength

CUSTOMERS of Maynilad Water Services, Inc. will see lower water bills in the third quarter, while Manila Water Co., Inc. customers will see no adjustment, following tariff changes driven by foreign exchange movements, the Metropolitan Waterworks and Sewerage System (MWSS) said.

At a briefing on Thursday, MWSS Chief Regulator Patrick Lester N. Ty said the board approved a reduction of P0.12 per cubic meter for Maynilad, reflecting the appreciation of the peso against the Japanese yen. No adjustment was approved for Manila Water.

For households served by Maynilad, the reduction will translate into lower monthly bills depending on consumption. Customers using 10 cubic meters or less will see a decrease of about P0.34, while those consuming up to 20 cubic meters and 30 cubic meters will see reductions of P1.29 and P2.66, respectively.

The regulator said the adjustment would not affect low-income households under Maynilad’s lifeline program.

“Maynilad implemented a rollback because of the appreciation of the peso against the Japanese yen,” Mr. Ty said. “Nearly half of Maynilad’s foreign currency-denominated loans are based on the Japanese yen.”

Manila Water will not implement any adjustment for the quarter, as MWSS deferred a minimal increase of less than one centavo per cubic meter to the next billing cycle. Mr. Ty said the adjustment was considered too small to implement immediately.

“For Manila Water, there’s no adjustment because it’s impractical to implement an increase of less than one centavo. So it will just be applied in the next quarter,” he said.

The changes form part of the foreign currency differential adjustment mechanism, which allows concessionaires to recover losses or pass on gains from movements in exchange rates.

Both water companies have foreign currency-denominated obligations, including concession fees and loans tied to infrastructure expansion and service improvements.

On supply conditions, MWSS said it does not expect a water crisis despite the looming El Niño event. The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) has raised its alert status, citing a high likelihood of El Niño between July and August, which may persist until early 2027. 

Mr. Ty said government and concessionaires have prepared mitigation measures to manage potential disruptions, though some localized interruptions might occur.

“We are prepared and we are sure that there will be no water crisis,” he said. “Maybe there will be some slight water service interruptions, but we are working on it.”

As of Thursday morning, the water level at Angat Dam stood at 171.72 meters, below the 180-meter minimum operating level, although MWSS said supply management plans remain in place.

Manila Water serves the east zone of Metro Manila and parts of Rizal province, while Maynilad covers the west zone of Metro Manila and parts of Cavite.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera