Take notice that due to a serious water shortage in the Sutton and East Surrey Water supply area caused by an exceptional shortage of rain during 2011 and over the winter of 2011/12, Sutton and East Surrey Water plc (the “Company”) of London Road, Redhill, Surrey, RH1 1LJ has been granted a drought permit by the Environment Agency under Section 79A of the Water Resources Act 1991, further to the application for the drought permit published on 15 March 2012.

The drought permit will involve the amendment of the Company’s existing abstraction licence (No. 9/40/3/386/s) of April 1966 (and subsequent amendment number 9 dated 1st April 2008) regulating abstractions by the Company from the River Eden and Bough Beech Reservoir. The licence permits abstraction from the River Eden during the winter subject to certain conditions, including the maintenance of a Minimum Residual Flow (MRF) of 22 Ml/d downstream of the abstraction. Abstraction is permitted from the reservoir at any time.

The drought permit is to enable abstraction to take place in the month of May 2012 (abstraction is currently not permitted by the licence between 1st May and 31st August). This abstraction will be controlled by a continuation of the 22 Ml/d MRF for the duration of the permit, as well as other special conditions relating to water quality and fisheries monitoring specified by the Environment Agency. The drought permit therefore involves a continuation of the winter abstraction, with the same conditions, for the period of one month.

The potential effect of the drought permit will be to increase the amount of water available for supply from Bough Beech reservoir to safeguard depleted sources. The Company has investigated the potential impacts associated with this drought permit in consultation with the Environment Agency and other bodies, including Natural England. In order to ensure that water quality, ecological and other interests are protected downstream of the abstraction, the 22 Ml/d MRF condition will be maintained for the drought permit. It has been demonstrated that this condition will protect these interests.

Anyone may inspect the granted drought permit, free of charge until 31 May 2012, at:

Sutton & East Surrey Water plc, Head Office, London Road, Redhill, Surrey RH1 1LJ

(During normal working hours)

Bough Beech Reservoir Water Treatment Works – Education Centre

(Monday to Friday 09:00 – 16:30)

Environment Agency, Orchard House, Endeavor Park, London Road, Addington, West Malling, Kent ME19 5SH

(During normal working hours)

Richard Rap, Operations Manager (Production)

27 March 2012