MORE than three million customers in Metro Manila’s east zone will enjoy a slight reduction in their water bills by the third quarter of this year.

Manila Water Co Inc. (MWC) said rates from the recently approved Foreign Currency Differential Adjustment (FCDA) will be lowered to P0.21 from P0.22 per cubic meter, starting on July 2 until the end of September.

The FCDA offers a “pass-through” mechanism, which allows Manila Water to recover foreign currency losses and likewise pass on gains from payments of company loans as well as foreign currency denominated borrowings used to fund the firm’s expansion and improvement.

Households consuming l0 cubic meters or less will be exempt from paying the FCDA, in line with the government’s program to protect low income customers.

Included in the east zone are areas are San Juan, Taguig, Pateros, Antipolo, San Mateo, Rodriguez, Marikina, Pasig, Mandaluyong, Makati and most of Quezon City.

The company noted that the third quarter tariff adjustment will have no significant impact on the concessionaire’s projected income.

In the first quarter of this year, net income grew nearly 14 percent to P622 million, owing to higher Ebitda (earnings before interest, taxes, depreciation and amortization), higher interest income and lower income tax rate in 2009. Billed volume reached 93.8 million cubic meters, lower than 94.8 million cubic meters last year.

Apart from water delivery, the company also manages and operates the sewerage system that covers a portion of its service area, and provides sanitation services, including desludging of septic tanks of customers in its concession area.

Ayala Corp., United Utilities Pacific Holdings BV, Mitsubishi Corp., BPI Capital Corp. and the International Finance Corp. are MWC’s principal shareholders.