Water rates in Metropolitan Manila and nearby provinces serviced by the east and west concessionaires - Manila Water Co. and Maynilad Water Services Ltd., respectively – will rise again starting next month.

This after the regulator Metropolitan Waterworks and Sewerage System (MWSS) approved the adjustment in the rates of the two concessionaires to reflect the Foreign Currency Differential Adjustment (FCDA) for the fourth quarter of the current year.

In the case of the Ayala-controlled MWC, the MWSS allowed it to adjust its FCDA component of its water bill from 1.0 percent to 1.89 percent of the basic charge of P0.21 to P0.40 per cubic meter, an increase of P0.19 per cubic meter.

FCDA is a tariff mechanism that was formulated to recover or account for foreign exchange losses or gains arising from the payment by the concessionaires of foreign currency denominated concession fees to the MWSS as well as loans for their service expansion and improvement.

In the case of Maynilad, which is controlled by the DMCI Holdings and the Metro Pacific Investments Corp., the MWSS granted a FCDA equivalent to an average of P0.36 per cubic meter or 1.31 percent of the average basic charge of P27.24 per cubic meter.

Due to the depreciation of the peso, the FCA per cubic meter of the previous quarter amounting to P0.09 has been adjusted to P0.36 for the fourth quarter of 2009 resulting in an increase of P0.27 per cubic meter.

MWC is undertaking service improvement program both in water supply and sewerage and sanitation in its service area which includes Mandaluyong, Pasig, San Juan, Marikina, Pateros, Makati, southeastern part of Quezon City and parts of Manila (San Andres and Sta. Ana). It also services Taguig, Antipolo, San Mateo, Rodriguez, Cainta, Taytay, and Angono. It also started providing services to the towns of Baras, Binangonan, and Jalajala in Rizal.