IDoK Application

Northumbrian Water Group PLC
11 September 2003

                                                               11 September 2003


              Northumbrian Water Group plc ("Northumbrian Water")
                                        
                   Application for Interim Determination of K


Northumbrian Water today announces that Northumbrian Water Limited has applied
to the regulator (Ofwat) for an Interim Determination of K (IDoK). If successful, 
this will allow the company to increase prices in real terms in 2004/05. 
Ofwat will issue a draft decision for consultation in November and a final
decision in December this year.

The main items covered by the application are: increased customer bad debt,
additional costs arising from new obligations, and lower than forecast demand.

In its Draft Business Plan published in August, Northumbrian Water Limited
assumed that no real price increase would apply in 2004/05. This is in line with
the existing price limit for that year (K of zero). The Final Business Plan
published in April 2004 will take into account the outcome of the IDoK.


Further information:


Northumbrian Water               0870 608 4820

Chris Green
Finance Director


Finsbury                         020 7251 3801

Mark Harris
Anthony Silverman








                      This information is provided by RNS
            The company news service from the London Stock Exchange