Ofwat is continuing to monitor the water companies' preparations, following the second independent Millennium Bug survey in June.

Ofwat has requested monthly monitoring reports from the companies to ensure that all the necessary steps are being taken by the water industry to remain 'Blue' under Action 2000's traffic lights scheme - this means no risk of material disruption has been identified.

July's reports show that the companies are continuing to monitor all systems and procedures. In partnership with the other utilities and public bodies, they are also testing, or making plans to test, their Contingency Plans - an action they undertake every year.

Director General of Water Services, Ian Byatt, said:

"I am pleased to report that the companies are taking all the necessary steps to ensure that it will be business as usual into the year 2000 and beyond. Ofwat will continue to monitor the companies every month to ensure that they remain 'Blue' in the run up to the Millennium.

"In addition, companies should reassure their customers by informing them about their preparations."

NOTES TO EDITORS

1. To save computer space, in the past, computer programmers referred to years by their last two digits rather than all four (ie: 99 instead of 1999). This meant that some computers and other electronic equipment cannot tell the years 1900 and 2000 apart and consequently could fail. This problem has become known as the Millennium Bug.

The following water and sewerage companies - all of those in England and Wales - have been assessed as blue:

Anglian Water; Bournemouth & West Hampshire Water; Bristol Water; Cambridge Water; Dee Valley Water; Essex & Suffolk Water; Folkestone & Dover Water; Mid Kent Water; North Surrey Water; Northumbrian Water; North West Water; Portsmouth Water; Severn Trent Water; South East Water; South Staffordshire Water; South West Water; Southern Water; Sutton and East Surrey ; Tendring Hundred Water; Thames Water; Three Valleys Water; Dwr Cymru Welsh Water; Wessex Water; Yorkshire Water.

www.open.gov.uk/ofwat/

Office of Water Services
Centre City Tower, 7 Hill Street, Birmingham B5 4UA