Stake in Chile's Water Sector Acquired

Thames Water PLC
24 November 1999



          THAMES WATER AND ELECTRICIDADE DE PORTUGAL
                               
               BUY STAKE IN CHILE'S WATER SECTOR
                               

Thames  Water and Electricidade de Portugal have today  agreed
the  purchase of a 45 per cent stake in the Chilean water  and
wastewater  services  company Empresa de Servicios  Sanitarios
del Libertador S.A. (ESSEL).

Located  in  the  city  of Rancagua, 50  miles  south  of  the
capital,  Santiago,  the company serves a population  of  over
500,000 in Chile's sixth region.

The  significant stake is being purchased for a  consideration
of  US$112.5m from the Government of Chile, via a  consortium,
Inversiones Andes Sur ('IAS').  Thames Water and Electricidade
de Portugal (EDP) will hold equal shares in IAS.

ESSEL's customer base is mainly residential and this has  been
increasing  in  terms of number of clients  and  sales  volume
since  1995.   In 1998 it had an annual revenue  of  US$19.5m,
which is expected to grow substantially from future price  and
volume increases, and from the expansion of the underdeveloped
wastewater  business.  There are also major  opportunities  to
improve efficiency.

Bill  Alexander,  Thames Water's Chief Executive  said:  'This
exciting  development  takes Thames  Water  into  one  of  the
fastest  growing regions for water services in the  world  and
provides  a  strategic platform for further  growth  in  Latin
America.   It  is  also a clear sign of  the  success  of  our
alliance with EDP.'

Mario  Cristina  de  Sousa, EDP's Chairman said:  'This  event
confirms   the   engagement  of  EDP  in  its  diversification
strategy,  which  will  add value for our  shareholders.  This
success  is  also a confirmation of the advantages of  joining
the   expertise  and  the  international  experience  of  both
partners.'

Thames  Water is the UK's largest water and sewerage  company,
serving  12 million customers in London and the Thames Valley.
Worldwide the company serves over 21 million people.

EDP    is    Portugal's   electricity   utility,   generating,
transmitting  and distributing electricity to more  than  five
million  customers.  Internationally, EDP is also involved  in
power  generation and distribution businesses, supplying  more
than six million clients.
                        


NOTE TO EDITORS

-    Prior to the sale, the Chilean state held 99 per cent  of
     ESSEL through a holding company Corperacion de Fomento de
     la  Producion (CORFO).  The remainder is owned  by  state
     company  Fisco  de  Chile.   Within  one  year   of   the
     completion  of  the  transaction, CORFO  will  offer  the
     company's  employees  up  to  10  per  cent  of   ESSEL's
     outstanding shares.

                               
For further information please contact:

Thames Water's Press Office -  Cathy Little 0118 959 3364; or
Alice Griffiths 0118 939 9274; Thames Water press releases can
be found on the internet: http://www.thames-
water.com/latest/lindex.html

EDP's  Press Office - Borges Da Fonseca [phone]/8  or
Fax [phone]; or Salvador Peres