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No approval


You report (NCE 15 July) that subject to OFWAT's approval, Thames Water plans to replace 350km of mains in defined areas of London.

Unless life has changed, while OFWAT sets price limits on the basis of, among other things, asset maintenance, it does not approve schemes.

To the extent that a company indicates its needs and demonstrates that such needs will be addressed in the coming regulatory period, the regulator will be under pressure to recognise the proposed expenditure as 'real'.

However asset maintenance and where it is carried out falls squarely on the shoulders of the companies.

B Walton, 8 Milford House, Portsmouth Road, Milford, Surrey, GU8 5HJ

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