RD 23/99

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

5 November 1999

INTEREST RATES FOR REQUISITIONS AND INFRASTRUCTURE CHARGES -
SIX MONTHLY REVIEW

The basis for Ofwat's approval of interest rates for requisitions and infrastructure charges was set out in the letter of 9 April 1990 (FD4).

The latest published value of the reference rate (described in paragraph two of the above letter) is 5.84%. Rates to be adopted from 1 November 1999 will therefore be increased from those published in our letter of 15 April 1999 (RD 14/99). They will be for borrowing, 7.25% (water and sewerage companies) or 7.50% (water only companies) and for deposits, 5.00%.

Any queries on the content of this letter should be addressed to Anna Hayes on 0121 625 1388.

I am copying this letter to Bob Dinwiddy (DETR), Bob Macey (National Assembly for Wales) and Pamela Taylor (Water UK).

Yours sincerely

Dr A J Ballance
Chief Economist

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