BWRA Bristol Wtr.8t%

RNS Number:9570A
Bristol Water PLC
19 July 2004

Embargoed for release at 7.00am
19 July 2004


                               Bristol Water plc
                                 AGM statement

A wholly owned subsidiary of Bristol Water Group plc, also holding its AGM today

Alan Parsons, the Chairman of Bristol Water plc, will make the following
statement at the Annual General Meeting of Bristol Water plc later today.

"I can confirm that since the year end trading has been satisfactory and in line
with our expectations, as set out in the Report and Accounts. Since the Accounts
were published, the actuary to our pension scheme has reviewed his figures and
the FRS17 pensions deficit as at 31 March 2004 has been re-assessed at #9.4
million net of tax, some #3.0 million lower than previously advised.

You will be aware that we are now in the closing phases of the review by our
economic regulator, OFWAT, that will lead to the setting of the regulated water
business' price limits for the five years starting in April 2005. The outcome is
very important to the future prospects for the company.

We have submitted a business plan that seeks a 20% real price increase in the
first year followed by 6% increases in each of the next two years. This
additional revenue is required to recover additional costs and taxes already
being, or about to be, incurred, to allow for an increase in the level of
maintenance of our assets to a more sustainable level and to provide an
appropriate return on capital employed. In addition, we have included a number
of schemes to provide for additional security of supply to customers in the case
of extended emergencies.

OFWAT will issue draft price limits on 5th August with a final determination on
2nd December 2004.  These will be carefully examined by the Board to ensure
there is an appropriate balance between price limits and obligations to be
undertaken. We will take the opportunity to comment on the final determination
when releasing our interim results."

Enquiries

Bristol Water plc                                    0117 953 6407
Alan Parsons, Chairman
Andy Nield, Finance Director


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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