MANILA - Customers of Maynilad Water Services Inc. may see higher bills in the coming months as the company said it will increase its rates starting October this year.

In an advisory, Maynilad said its Foreign Currency Differential Adjustment (FCDA) will be adjusted to 36 centavos per cubic meter, an increase of 27 centavos per cubic meter from the 9 centavos per cubic meter in the previous quarter.

For Maynilad customers consuming an average of 10 cubic meters per month, the adjustment will translate to an increase of 93 centavos in their monthly water bill.

The FCDA is a "pass-through" mechanism that allows Maynilad to recover losses or pass on gains resulting from payments of concession loans and foreign currency-denominated borrowings. At present, Maynilad pays foreign currency-denominated concession fees to the Metropolitan Waterworks and Sewerage System (MWSS).

The FCDA goes down when the peso strengthens against foreign currencies, and goes up when the peso depreciates.

Last week, the MWSS has approved the extension of Maynilad's concession contract. The company is just waiting for the Finance Department's endorsement before it can continue its service for another 15 years.

In 2007, Maynilad was acquired by DMCI-Metro Pacific Water Co., a joint venture between DMCI and Metro Pacific Investments Corp. (MPIC), which is chaired by businessman Manuel Pangilinan.

Only 3 years under its new owners, the water firm has installed 137,000 new connections, expanded 24-hour water supply coverage to 60% of its concession area, and spent nearly P20 billion to replace old pipes, upgrade facilities and expand its distribution network.