Customer Benefits from Water Efficiency

Thames Water PLC
25 November 1999
       
                             
             STATEMENT: OFWAT REVIEW OF PRICES

                             
      CUSTOMERS BENEFIT FROM THAMES WATER EFFICIENCY

Under  Ofwat's review of water industry prices,  announced
this morning, Thames Water customers will:

- Continue to have the lowest average bills in the
  country.
- See their bills fall by an average of around £21 next
  year (from April 2000).
- Have stable prices for the following four years, with
  bills rising broadly in line with inflation.
- Benefit from new investment (estimated by Ofwat at £2.2
  billion), delivering further service, quality and
  environmental improvements.

Bill   Alexander,  Group  Chief  Executive,  said:   'This
morning's announcement sets our Utility business some very
demanding challenges, but we are an efficient company  and
our track record is good.

'From  the  outset Thames Water's approach  to  the  price
review  has  been  pragmatic and  responsible,  aiming  to
secure  a  balanced  outcome  that  meets  the  needs   of
customers, the environment, employees and investors.

 'We will study the detail of this announcement closely to
see  whether the right balance has been struck and we will
make a full response in due course.'
                             
                             
Thames  Water  is  the  UK's largest  water  and  sewerage
company,  serving 12 million customers in London  and  the
Thames  Valley.   Soon  the company  will  serve  as  many
customers overseas.

                        
For further information please contact:

- Press Office: Nick Tennant  0118 939 9258 or
  Andrew Boyd 0118 959 3364
- Liz Christie, Head of Investor Relations, 0207 7833 6125

Thames  Water press releases can be found on the  Internet
at http://www.thames-water.com/latest/lindex.html


Water Value
Fact: for the last 10 years, our household customers  have
benefited from the lowest average bill in the country.