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RD 22/07


TO THE REGULATORY DIRECTORS OF ALL
WATER AND SEWERAGE COMPANIES AND
WATER COMPANIES

Dear Regulatory Director

 2008-09 PRINCIPAL STATEMENT: RPI

 We stated in RD 16/07 that we would write to confirm the November 2007 RPI figure, which you will need in order to complete your 2008-09 principal statement.

 The all-items Retail Price Index (RPI) for November 2007 was 209.7.

 Please enter this value in cell K27 of the 2008-09 principal statement to one decimal place. In cell K26 is the value (201.1) for the November 2006 all-items RPI. The spreadsheet will automatically calculate the annual increase as 4.28% in cell K18.

The maximum level of the infrastructure charge is now £288.64.

Please address any queries on the content of this letter to Samuel Okyere on 0121 625 1485.

I am copying this letter to Richard Wood (Defra), Nicola Thomas (Welsh Assembly Government) and Pamela Taylor (Water UK).

Yours sincerely

Lynne Currie

Head of Customer Charges