P208 CEEFAX 208  Thu  4 Nov  21:13/14
     
      OFWAT SIGNALS        
   I   LOWER PROFITS        
 
  Water company profitability should  
  bj sufficient to attract capital,   
  but does not need to bj as high as  
  in the past, says Ofwat.            
                                      
  The price review, effective April   
  1995, should "take full account of  
  the position of customers"          
                                      
  Director of Ofwat, Ian Byatt, says  
  rates of return on capital could bj 
  cut to around 5%-6%.                
  
  Utility analysts had expected him   
  to propose a cut to around 6%-7.5%. 
  Hence, water shares saw a negative  
  reaction to the report early on.    
  
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