RD 23/00
TO THE REGULATORY DIRECTORS OF ALL
WATER AND SEWERAGE COMPANIES AND
WATER COMPANIES
7 November 2000
Dear Regulatory Director
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 (10 year gross redemption gilt yield) is 5.19%. Rates to be adopted from 1 November 2000 will therefore be unchanged from those published in Charles Whitworth's letter of 7 April 2000 (RD 12/00). They will be for borrowing, 6.75% (water and sewerage companies) or 7.00% (water only companies) and for deposits, 4.50%.
Any queries on the content of this letter should be addressed to Anna Hayes on 0121 625 1388.
I am copying this letter to Rodney Anderson (DETR), Bob Macey (National Assembly for Wales) and Pamela Taylor (Water UK).
Yours sincerely
Charles H Whitworth
Head of Tariffs
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Letters to Regulatory Directors
