PRESIDENT Arroyo has approved an increase in the charges of concessionaires Manila Water and Maynilad Water to recoup their losses from inflation and the weak peso, an official said yesterday.

Mrs. Arroyo allowed the utilities to charge P2.21 to P2.81 more per cubic meter starting next week after they explained they needed to recover those losses, Executive Secretary Eduardo Ermita said.

?The rate increase will push through. These are automatic adjustments that are allowed in the contracts of the MWSS with the two concessionaires,? Ermita said.

?They assured us that there will be no increase in the basic charges.?

Maynilad will charge the new rate on Feb. 19, and Manila Water on Feb. 20. The new rates will bring Manila Water?s charges to P2.27 a cubic meter and Maynilad?s to P2.81, and those will be reflected in customers? bills in March.

Listed Manila Water serves the eastern part of Metro Manila and Maynilad Water the west. Together they serve around 13 million customers.

The state-run Manila Waterworks and Sewerage System had earlier allowed them to charge higher, but Ermita ordered Waterworks Administrator Diosdado Jose Allado to explain the increase last week, citing Mrs. Arroyo?s order to stop rate increases as a result of the economic crisis.

The state-run regulator said at least three million households consuming 10 cubic meters or less each month would be exempted from the higher charge. Joyce Pangco Pa?ares