RNS No 4406k
BRISTOL WATER PLC
9 April 1999 


                       BRISTOL WATER PLC
                               
               BUSINESS PLAN SUBMISSION TO OFWAT

Bristol   Water  PLC  ("Bristol  Water"),  the  wholly   owned
subsidiary of Bristol Water Holdings PLC, has today  submitted
proposals  to OFWAT outlining its business plan for  the  five
year period 2000 to 2005.

Bristol Water expects to invest over #60 million over the next
five  years  to  comply  with the new  tighter  water  quality
standards, broadly increasing borrowings to a similar extent.

This  programme  includes  a  #26  million  lead  supply  pipe
replacement  programme  as Bristol Water  has  a  higher  than
average  proportion  of  lead  pipes  and  the  water  in  the
Company's  area is generally plumbo-solvent. Final details  of
EU monitoring methods are not yet known.

The  overall investment programme will increase to around  #27
million   per   annum.   In  addition,  new  operating   costs
(estimated at an average of over #3.7 million per annum)  will
arise  from  new  legal obligations and taxes  (including  the
Climate  Change Levy), the introduction of free meter options,
the  additional  costs  of debt collection  arising  from  the
banning   of   domestic  disconnections,   and   securing   an
improvement  in the reliability of the vital source  of  water
from the Sharpness Canal.

Bristol  Water has proposed 'K' factors of +1.5% for the  year
2000/01  and  +1%  in each of the following four  years.   The
additional  0.5%  in  the  first year reflects  the  company's
expectation  to qualify for a small premium, due to  its  high
standards of service (ranked second overall by Ofwat in  their
latest report).

For further information:

Jeremy Williams                       Lulu Bridges
Head of Corporate Affairs             Tavistock Communications
Bristol Water PLC                     
Tel:  0117 953 6470                   Tel:  0171 600 2288
or     0831 453924                    



END

MSCALLIFSSIAIAA


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