Maynilad Water Services, Inc. customers are set to experience a slight increase in their water bills come July, as approved by the Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS RO) for the third quarter Foreign Currency Differential Adjustment (FCDA).

During a media briefing, MWSS RO Chief Regulator Patrick Lester Ty revealed that Maynilad, serving the West Zone, will implement rate hikes of P0.01 for those consuming 10 cubic meters (cu.m) or less, P0.05 for 20 cu.m or less, and P0.11 for 30 cu.m or less.

Maynilad will be applying an FCDA of -0.64 percent of its 2025 average basic charge of P52.40 per cu.m, equating to -P0.329 per cu.m. This represents a slight increase from the previous quarter, resulting in an average rise of P0.005 per cu.m.

On the other hand, Manila Water Co. customers in the East Zone will see a decrease in their FCDA. Those consuming 10 cu.m or less will witness a P0.55 reduction in their bills, P1.20 for 20 cu.m or less, and P2.45 for 30 cu.m or less.

Manila Water will be implementing an FCDA of 1.12 percent of its 2025 average basic charge of P47.10 per cu.m, amounting to P0.53 per cu.m, down by P0.12 from the previous quarter.

The FCDA serves as a quarterly tariff adjustment mechanism that aligns rates with foreign exchange rate fluctuations.

According to Ty, the variance in FCDA adjustments between Maynilad and Manila Water is attributed to the peso's movement against different foreign currencies, as well as the unique composition of each company's foreign currency loan portfolio.

The peso depreciated against the euro and yen but appreciated against the US dollar. Manila Water predominantly holds euro-denominated loans, while Maynilad has a higher proportion of yen loans. Consequently, the forex changes impacted each company differently, leading to opposing rate adjustments for the third quarter.