Anglian Water Price Limit

RNS Number:6602S
Office of Water Services
01 December 2003


PN 49/03                                                         1 December 2003


              OFWAT ANNOUNCES ANGLIAN WATER PRICE LIMIT

                        UNCHANGED FOR 2004-05


Anglian Water has today withdrawn its application for an increase in customers'
bills for the remaining 12 months of the current price review period.

In light of this response, Ofwat has decided to withdraw its counter notices and
will not be seeking a reduction in the price limit for 2004-05. Anglian Water's
price limit will be the 2.5% plus inflation set at the 1999 price review.

Customers will not be disadvantaged by this. The issues set out in Ofwat's
provisional decision on 12 November (see PN 45/03) will now be considered within
the 2004 periodic review process. We will use net savings identified in this
period to offset increases that may be needed at the start of the new price
review period, in April 2005.

This is in line with the preference for a more stable price profile expressed to
Ofwat by WaterVoice Eastern.

Note to Editors:

 1. Philip Fletcher, the Director General of Water Services, is the economic
    regulator of the water and sewerage companies in England and Wales. He
    exercises his powers in a way that he judges will allow them to carry out
    their functions properly, and finance them. WaterVoice represents customers'
    interests.

 2. Price limits were set on 25 November 1999 for all the water and sewerage
    companies in England and Wales. They came into effect on 1 April 2000.
    Copies of 'Final Determinations: Future water and sewerage charges 2000-05'
    are available on Ofwat's website: www.ofwat.gov.uk and from Ofwat's library
    (0121-625 1373).

 3. Condition B of their licences allows companies to apply for an adjustment of
    their price limits for certain relevant changes in circumstances affecting
    costs that, in total, over a number of years exceed 10 per cent of their
    turnover. Ofwat can also serve a counter notice if the regulator has
    evidence that companies have been allowed to raise money for work that may
    no longer be needed, or has not been carried out.


MEDIA ENQUIRIES TO OFWAT PRESS OFFICE ON: 0121 625 1416/1496/1442

Out of hours enquiries to pager: 08700 555 500 water 503/509. Ofwat publications
and press notices can be found on Ofwat's website at: www.ofwat.gov.uk


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