TAKE NOTICE that on 16 January 2018 the Environment Agency granted a Drought Permit to Southern Water Services Limited ("Southern Water”) of Southern House, Yeoman Road, Worthing,West Sussex, BN13 3NX following Southern Water's application on [4th/5th] January 2018 under Section 79A of the Water Resources Act 1991.

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 22 November 2017 (“the Licence”).

The Drought Permit amends the Licence and allows Southern to continue to abstract from the River Medway and reduces the Minimum Residual Flow at Smallbridge, Yalding and Springfield to 150 Mega litres per day as measures at Teston Weir until 31 March 2018. Thereafter the original terms of the Licence will resume.

To the extent that dissolved oxygen levels in the water may fall below the licence threshold as a result of the permit, abstraction will cease and mitigation begin.

The permit will 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 permit will decrease the rate of drawdown in Bewl Water reservoir and assist with its refill.

Southern Water carried out a comprehensive environmental assessment. Potential negative effects will be mitigated by an Environmental Action Plan and by the conditions of the Drought Permit.

Anyone may inspect the Drought Permit, free of charge, at the offices of Southern Water at Southern House, Nelson Terrace, Chatham, Kent, ME5 7QA; or at Southern House Yeoman Road, Worthing, West Sussex, BN13 3NX between the hours of 9.00AM and 5PM and at Bewl Waterfront Café, Bewl Water, Lamberhurst where it may be viewed Wednesday to Sunday from 10.30AM to 3PM.

Dated 17 January 2018

SignedJ Statton, Company Secretary, Southern Water Services