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Letters to Regulatory Directors
RD 06/05 15 April 2005 Dear Regulatory Director INTEREST RATES FOR REQUISITIONS AND INFRASTRUCTURE CHARGES – SIX MONTHLY REVIEW The basis on which Ofwat approves interest rates for requisitions and infrastructure charges was set out in a letter to companies on 9 April 1990 (FD4). The latest published value of the reference rate (10 year gross redemption gilt yield) is 4.80% (March 2005). The rates that companies must adopt from 1 April 2005 will therefore remain the same as those set out in my letter of 11 November 2004 (RD 21/04). They are, for borrowing, 6.25% (water and sewerage companies) or 6.50% (water only companies) and, for deposits, 4.00%. Any queries on the content of this letter should be addressed to Suzanne Wright on 0121 625 1389. I am copying this letter to Richard Wood (DEFRA), June Milligan (Welsh Assembly Government) and Pamela Taylor (Water UK). Yours sincerely Paul Hope Head of Tariffs  |
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