September 16, 2015

MWC and Maynilad to adjust rates for FCDA

Manila Water Co (MWC), through a disclosure to the Exchange, said it has secured regulatory approval to implement a Foreign Currency Differential Adjustment (FCDA) of P0.05 per cubic meter (cu.m). This represents a P0.03/cu.m increase from the 3Q15 FCDA of P0.02/cu.m. The adjustment is based on exchange rates of P45.2649/USD and P0.3674/JPY.

As a result, the FCDA component of the water bill will be adjusted to 0.21% of the basic charge of P25.25/cu.m. for 4Q15. On the other hand, Metro Pacific Investment Corp (MPI) subsidiary Maynilad Water Services Inc (Maynilad) will also implement a 1.58% FCDA on its basic charge of P33.60/cu.m.

This is equivalent to P0.53/cu.m., an P0.11/cu.m increase from the 3Q15 FCDA of P0.42/cu.m. Both rate adjustments will take effect on 1 October. Note that the FCDA is a pass-through tariff mechanism that is implemented quarterly to account for foreign exchange losses or gains arising from the payment by the concessionaires of various loans and borrowings and thus will not impact the overall profitability of the companies. - WealthSec