MANILA - Water concessionaire Manila Water said in a disclosure to the Philippine Stock Exchange that it is passing on some foreign exchange savings to consumers.

The Ayala-led firm said that the foreign currency differential adjustment (FCDA) component of its clients' water bill will decline from P0.22 to P0.21 per liter as the peso strengthened from P49.186 to P48.217.

"In line with the government's program to protect low-income households, residential customers consuming 10 cubic meters or less a month will still be exempted from paying the FCDA," Manila Water said.

The P0.01 per liter reduction will be effective on July 2, 2009.

The company added that such tariff adjustments "have no real significant impact on the projected income of the Manila Water Company."

The FCDA is a "pass-through" mechanism that allows Manila Water to recover foreign currency losses or pass on foreign currency gains resulting from payments of concession loans and foreign-currency denominated borrowings that fund service expansion and improvement.

Manila Water added that the government, through regulator Metropolitan Waterworks Sewerage System, has approved the decrease in the FCDA for its more than 1 million customers in the eastern part of Metro Manila.

However, residential customers consuming 10 cubic meters or less a month will be exempt from FCDA as part of the government’s program to protect low-income households.