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RD 18/00

TO REGULATORY DIRECTORS OF ALL

WATER AND SEWERAGE COMPANIES AND

WATER ONLY COMPANIES

1 August 2000

Dear Regulatory Director

MARKET RESEARCH: PROTECTION FOR VULNERABLE CUSTOMERS

In the consultation paper Approval of companies charges schemes 2001-2001 issued in June 2000, the Director indicated that Ofwat had commissioned market research into customers' views on which customers should benefit from social tariffs and to what extent. This research has now been completed and a copy is enclosed for your information. The results will be taken into account in conjunction with the consultees' responses to in the consultation paper. Ofwat will also take the results into account when assessing any proposals for new social tariffs put forward by companies in this year's approval of charges schemes process.

I hope that you will find the enclosed report interesting and useful when considering your proposals for tariffs later this year.

Yours sincerely

Mike Saunders
Head of Consumer Affairs and Tariffs