06 December 2007

On 19 November 2007, Business Stream submitted its permanent water services and sewerage services licence applications to the Commission.

These have been reviewed and we have received confirmation from the Commission that it is minded to propose to grant us the licences.

We have today published in the Times the following notice:

Notice of Application for a Water Services Licence or a Sewerage Services Licence

Scottish Water Business Stream Limited, 55 Buckstone Terrace, Edinburgh EH10 6XH hereby gives notice that on 19 November 2007 they made an application to the Water Industry Commission for Scotland ("the Commission") for a "water services licence" and "sewerage services licence", in terms of section 6 of the Water Services etc. (Scotland) Act 2005.

Any person who wishes to make representations on the application should send their representations, in writing (including by e-mail) to the Director of Corporate Affairs, the Water Industry Commission for Scotland, Ochil House, Springkerse Business Park, Stirling FK7 7XE or enquiries@watercommission.co.uk no later than 5pm on 20 December 2007. Further information on how to make representations, including information on the treatment of confidential information, can be obtained from the Commission at the above address or at www.watercommission.co.uk or by telephoning 01786430200.

Signed: Mark Powles, Managing Director

For and on behalf of: Scottish Water Business Stream Limited

Date: 6 December 2007