No rate increase for Manila Water customers despite El Niño risk

Water concessionaire says El Niño will not affect service rates, with only a possible foreign currency adjustment in October.

Despite the looming threat of a “super” El Niño, Manila Water customers can expect no increase in water rates, with only a possible minimal adjustment in October if the peso-dollar exchange rate changes.

Unlike electricity rates, which are revisited every month based on the global price of crude oil, service tariffs for water concessionaires are renewed by regulators on a five-year basis.

Manila Water had its Rate Rebasing Service Improvement Plan approved in 2022, covering 2023 to 2027. Annual rate increases are spread out across the five years to ease the burden on consumers.

However, service rates can be affected in the short term by foreign currency differential adjustments (FCDAs), or adjusted rates based on the Philippine peso’s value against foreign currencies, such as the U.S. dollar. This rate is renewed by regulators every quarter based on the peso’s performance in the money market.

The upcoming “super” El Niño, a global weather phenomenon characterized by extreme heat and dry spells due to seasonal wind patterns, is anticipated to cause less rainfall and lower water supply.

Aside from keeping rates unchanged, Manila Water also promised customers that no service interruptions will occur due to its improved supply capacity.

Manila Water serves the East Zone of Metro Manila and surrounding areas in Rizal and Laguna.

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