BWRA Bristol Wtr.8t%

RNS Number:9342J
Bristol Water PLC
14 December 2007




                   BRISTOL WATER ACCEPTS REVISED PRICE LIMITS

Bristol Water has accepted regulator Ofwat's decision that it can put its prices
up by more than the limits set in 2004.

The increased limits reflect an updating of Ofwat's views on a number of
specified uncertain costs that had to be estimated when prices were previously
set.

Ofwat will now allow average Bristol Water prices to increase by 3.6% above
inflation from April 2008. There will be only an inflationary change in average
prices from April 2009. Prices for April 2010 and beyond will be set in two
years at the end of the current industry wide price review.

The decision means the average household water supply bill will increase by �5 a
year in April to �144 per year before inflationary effects are added. Prices
previously set would have seen a 0.7% increase next year and a 2.3% reduction in
2009 - both before inflationary adjustments.

When setting price limits for 2005 onwards, Ofwat identified a number of
uncertainties where, if the original assumptions proved to be wrong, price
limits could be reviewed by an interim determination.

In three of these areas Bristol Water has experienced significant increases in
costs: the soaring number of domestic customers opting for a free meter; the
level of bad debts; and water abstraction charges.

--------------------------------------------------------------------------------

For further information about this release, please call 
Jeremy Williams or Paul Kelson on 0117 9536470 (office hours) 
or 07831 453924 or 07831 518964 (outside office hours)






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