TAKE NOTICE that due to the threat of a serious water shortage in the Kent Medway, Kent Thanet and Sussex Hastings water supply areas, caused by an exceptional shortage of rainfall, Southern Water Services Limited (“Southern Water”) of Southern House, Yeoman Road, Worthing, West Sussex, BN13 3NX, is applying to the Environment Agency for the extension of the drought permit granted by the Environment Agency on 28 February 2012 under Section 79A of the Water Resources Act 1991 for the winter refill of Bewl Water. Southern Water is licensed to abstract water from the River Teise at Smallbridge, the River Medway at Yalding and Springfield, and at Bewl Water Reservoir, under Licence 02/114 dated 2 April 1992 (“the Licence”). Under the terms of the Licence, Southern Water is allowed to abstract a maximum quantity of 250 Mega litres per day (Ml/d) at Yalding and 136 Ml/d at Springfield subject to a Minimum Residual Flow (“MRF”) of 275 Ml/d as measured at Teston weir.

The drought permit amended the Licence to reduce the MRF from 275 Ml/d to 100 Ml/d until 31 March 2012 allowing Southern Water to continue to abstract water at the lower MRF in the River Medway. The proposed extension if granted will extend the drought permit until 30 April 2012. As Southern Water has facilities to pump water abstracted at Yalding to Bewl Water Reservoir, the intention of the extension, if granted, will be to further assist in the refill of Bewl Water Reservoir, which is currently depleted. The refill of Bewl Water Reservoir is necessary to secure the supplies of water made available to the public.

The anticipated effect of the extension, if granted, will be to decrease the rate of drawdown in Bewl Water reservoir and assist with its refill, thereby assisting in securing the public water supplies made from that source. The Company has carried out a comprehensive environmental assessment. Potential negative effects will continue to be mitigated by the Environmental Action Plan and appropriate conditions in the extended drought permit by the Environment Agency, after consultation with Natural England and other affected parties.

Anyone may inspect the proposals, free of charge, at the offices of: Southern Water at Southern House, Capstone Road, Chatham, Kent, ME5 7QA; or at Southern House Yeoman Road, Worthing, West Sussex, BN13 3NX; or at the Environment Agency at Orchard House, Endeavour Park, London Road, Addington, West Malling, Kent, ME19 5SH, between the hours of 10:00 am. and 4:00 pm., Monday to Friday; or at The Sailing Club at Bewl Water Reservoir, near Lamberhurst, Tunbridge Wells, Kent, TN3 8JH, between the hours 9:00 am to 3:00 pm Monday to Friday or 9:00 am to 4:45 pm Saturday and Sunday; or Maidstone Library, St Faith’s Street, Maidstone, ME14 1LH between the hours of 9:00 am to 6:00 pm Monday to Friday and between the hours of 9:00 am to 5:00 pm on Saturday for a period of 7 days from the date of publication of this notice.

Objections may be made in writing to the Environment Agency at WR Permitting Support Centre, Quadrant Two, 99 Parkway Avenue, Sheffield, S9 4WF or by email to PSC-WaterResources@environment-agency.gov.uk, stating the grounds of the objection and giving an address or email address to which correspondence relating to the objection may be sent. The Environment Agency will pass to the applicant a copy of any objection it receives. Objections should be made immediately and, in any event, within 7 days of the date of publication of this notice.

Dated 16th March, 2012

K Hall, Company Secretary, Southern Water Services Ltd.