RD27/02

TO ALL REGULATORY DIRECTORS OF
WATER AND SEWERAGE COMPANIES
AND WATER ONLY COMPANIES

AQUARIUS 3 FINANCIAL MODEL

In the Ofwat Forward Programme we stated the new Aquarius 3 Financial Model would be released by the end of September. The development of the Financial Model has proceeded satisfactorily over the summer and we are now looking towards a conclusion of the external audit.

It is important that the model when it is issued has been thoroughly audited and tested. We need to spend some further time on this work and it is expected the model will now be issued in November. It is acknowledged this is a few weeks behind schedule, however this is well in advance of the preparatory work for submitting the Draft Business Plans in August 2003.

The workshops for companies on the new model will, consequently, also be delayed but we hope to hold these before the end of 2002.

Yours sincerely

KEITH MASON
Director of Regulatory Finance