UMVA has learned that customers of a major water services provider in Metro Manila can expect to see lower water bills in the third quarter, while those of another provider will not experience any adjustment, due to recent tariff changes.
The changes, driven by foreign exchange movements, were announced by the Metropolitan Waterworks and Sewerage System (MWSS) at a recent briefing. According to information obtained by UMVA, the board approved a reduction of P0.12 per cubic meter for one of the providers, reflecting the appreciation of the peso against the Japanese yen.
For households served by the provider with the reduced rate, the decrease will translate into lower monthly bills depending on consumption. Specifically, 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 confirmed that the adjustment would not affect low-income households under the provider's lifeline program. The reduction is a result of the appreciation of the peso against the Japanese yen, which has nearly half of the provider's foreign currency-denominated loans based on the Japanese yen.
On the other hand, the other water provider will not implement any adjustment for the quarter, as the MWSS deferred a minimal increase of less than one centavo per cubic meter to the next billing cycle. The regulator stated that the adjustment was considered too small to implement immediately.
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.
In a related development, the MWSS assured that it does not expect a water crisis despite the looming El Niño event. According to information obtained by UMVA, the Philippine Atmospheric, Geophysical and Astronomical Services Administration has raised its alert status, citing a high likelihood of El Niño between July and August, which may persist until early 2027.
The regulator expressed confidence that government and concessionaires have prepared mitigation measures to manage potential disruptions, though some localized interruptions might occur. As of the latest available data, the water level at Angat Dam stood at 171.72 meters, below the 180-meter minimum operating level, although supply management plans remain in place.
