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Letters to Managing Directors
MD193 5 August 2004 Dear Managing Director AMP4 CHANGE PROTOCOL - draft I attach a draft of our proposed protocol for dealing with changes in the funded improvement programmes between 2005-06 and 2009-10. This draft of the protocol has been developed following a preliminary consultation with you, other regulators and WaterVoice in June and July. We are grateful for all the contributions and we have taken the comments and suggestions into account in developing the enclosed draft. Our proposed AMP4 change protocol sets out our intentions on how changes will be taken into account, both at the next periodic review in 2009 and between April 2005 and September 2008, the last date for an interim determination application before the 2009 periodic review. Broadly, we have concluded that the general approach established since privatisation in 1990 remains valid and does not require radical change to the two main instruments, interim determinations and through logging-up/down adjustments at the 2009 periodic review. We have seen the need to set down more clearly the general principles we shall use in considering changes and to develop outline procedures as a guide to dealing with different types of changes. In both areas we have pulled together past and current practice. The draft protocol also includes some guidance on particular issues, such as dealing with first time sewerage applications, disproportionate planning requirements and proposals for further reductions in flooding from sewers. We hope that you will consider our proposals in the light of our draft determinations, also issued today. Please could you send us any comments and suggestions you have on the protocol by close on Friday 1 October - to Bill Emery or via email to bill.emery@ofwat.gsi.gov.uk. We will publish the protocol as part of our final determination on Thursday 2 December 2004. Yours sincerely Philip Fletcher Director General of Water Services Enc.  |
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