Response to OFWAT Proposals

THAMES WATER PLC
27 July 1999

               STATEMENT ON OFWAT'S DRAFT DETERMINATION

Thames  Water's  approach to the price review has been  pragmatic  and
responsible.   We are seeking to strike a balance between  short  term
sharing  of  efficiency improvements with our customers through  lower
prices  whilst  maintaining the financial strength of the  Company  to
invest in our collective future.

The  draft  determination  is demanding and will  necessitate  further
discussion in a number of areas, including environmental and  customer
service improvements.  We intend in these discussions to continue with
our  balanced  approach  which has regard  to  the  interests  of  our
customers, investors, employees and the environment.

For further information please contact Thames Water's Press Office:
Nick Tennant 0118 939 9258 or Cathy Little 0118 959 3364.  Thames
Water press releases can be found on the Internet at:
http://www.thames-water.com/latest/lindex.html