THAMES WATER A summary of our Business Plan Submission to Ofwat - April 1999

OVERALL STRATEGY FOR THE AMP3 PERIOD AND TOP 5 STRATEGIC OBJECTIVES To provide a fair balance of benefits to our stakeholders, principally customers, shareholders, the environment and employees To reflect customers' priorities, wherever possible To obtain sufficient funding to finance our operations, including proper allowances for risks and returns to investors To return a reasonable proportion of efficiency savings to all interested parties, in the form they prefer To maintain low bills and provide good value for money

PROPOSED PRICE LIMITS & EFFECT ON AVERAGE BILLS								TOP 5 QUALITY IMPROVEMENTS IN 2000-2005 PERIOD
		2000 -01	2001- 02	2002 -03	2003- 04	2004- 05
1	Proposed Price Limit (Water Service)
2	Average Household Bill (today's prices)
3	Average Household Bill paid
1	Proposed Price Limit (Sewerage Service)
2	Average Household Bill (today's prices)
3	Average Household Bill paid
	Impact on the average water and wastewater services bill (todays prices)	195	200	205	210	215

 

PROJECTED EXPENDITURE NEEDS			Annual average for the AMP3 period (£/property/annum)		WHAT IS DRIVING THE CHANGES IN BILLS		£
1	Total Operating Expenditure - annual average				Average household bill in 1999-2000		205
2	Total Capital Maintenance Expenditure - annual average				Less	(1) passing on past out-performance
3	Total Capital Enhancement Expenditure - annual average				Plus	(2) challenging targets for future efficiency improvements
						(3) the impact of improvements in water quality
RETURN CAPITAL						(4) improvements in service performance
Return on capital - (post tax) (%)			%			(5) Maintaining security of supplies to all customers
						Average household bill in 2004-2005	215