Customers of Manila Water Co. Inc. (MWCI) will no longer be subject to rate hikes for nearly a quarter of a century starting 2015. The Ayala-led water company will only levy its basic water rate from 2015 to 2037.
Manila Water customers will still need to pay an extra P1 for the years 2013 and 2014. This was among the “sweeteners” offered by Manila Water in exchange for government’s endorsement of its proposed 15-year extension of its water distribution contract.
Under the arrangement, Manila Water’s customers will only cover inflation adjustments and foreign currency fluctuations during the 22-year period.
[...] Besides keeping basic water rates steady for 22 years, Manila Water also agreed to defer a rate hike this year and charge a peso for every year from 2010 to 2012. For all customer classes, the company currently charges P24.21 per cubic meter of water. Its household clients pay P12.94 for every cubic meter of water.
Manila Water currently serves 5.28 million customers, a figure that will rise to 10.3 million by 2037, the year its contract ends.
Source: Robert JA Basilio Jr., GMANews.TV, 21 Apr 2009
