City File: Water saving

ON THURSDAY, Thames Water will unveil multi-million pound plans for a new filter to clean up London's water. The filter, which can be installed more quickly than existing ones, will reduce by three years its target time for reaching the standards laid down by the EC. The project will now be finished by the end of 1996.

Earlier this month, Thames posted profits of pounds 251m. It is widely regarded as one of the best-managed companies in its core business areas. However, it may run into stormier waters next year, when the Ofwat review of prices is due to be completed. Last week, Ian Byatt, the industry regulator, fired his first warning grapeshot.