48HO Mid Kent Wtr4%

RNS Number:1299P
Mid Kent Holdings PLC
8 August 2000


Mid Kent Holdings PLC ("Mid Kent Holdings")
Competition Commission Decision

In January this year Mid Kent Holdings announced that its wholly owned
subsidiary Mid Kent Water had asked the Director General of Water Services
("DGWS") to refer its price determination to the Competition Commission.  It
believed that the DGWS had given inadequate consideration to the particular
demographic and water resource characteristics of its area.

The Company believes its decision to request a referral was justified since
the Competition Commission has changed the Director General's Determination of
Prices for the current five year period by decreasing the notional average
water price reduction for the first year from 19.5% to 15.3%.

As customer bills have already been sent out for the first year with a 19.7%
price reduction, this will mean average price increases in real terms of 4.5%
and 3.2% in the next two years respectively, but no further real increases for
the remainder of the period.

These price adjustments will enable Mid Kent Water to invest approximately
#14m in additional capital projects required to improve the reliability,
quality and security of customers' water supply.

Over the next few months, the Board of Mid Kent Holdings will be examining the
Competition Commission's full report in detail and its impact on the Group's
future earnings growth.

Group Chief Executive and Chairman of Mid Kent Water, Keith Tozzi said "Mid
Kent welcomes the Competition Commission's decision to improve its water
revenues which will provide additional financial headroom and enable it to
further its plans to improve levels of service to over 560,000 people it
supplies with water every day."

For further enquiries:-

Keith Tozzi
Mike Clark
Mid Kent Holdings PLC
01634 873000

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