Exhibit
        4.2


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ELECTRICITY DISTRIBUTION LICENCE: 
STANDARD CONDITIONS

Utilities
Act 2000



Determination of Standard Licence Conditions for

Electricity
        Distribution Licences

The Secretary of State, in exercise of the powers conferred on her by section 33(1) and (2) of the Utilities Act 2000 (the Act) hereby determines that the attached conditions shall
be standard conditions for the purpose of electricity distribution licences.

The standard conditions shall be incorporated into distribution licences as standard conditions with effect from the commencement of section 33(3) of the Act.



|                                                                                                                            
|----------------------------------------------------------------------------------------------------------------------------
|Nigel Peace                                                                                                                 
|An official
        of the Department of Trade and Industry authorised 
      to act on behalf of
    the Secretary of State
|                                                                                                                            
|27 September
    2001                                                                                                       



|Electricity Distribution    |   |                    
|--------------------------- | - | -------------------
|Standard Licence Conditions | 1 | September
	    2001

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|TABLE OF CONTENTS                                                                                             
|--------------------------------------------------------------------------------------------------------------
|                                                                                                              
|Electricity Distribution Licences                                                                             
|PART II. THE STANDARD CONDITIONS                                                                              
|SECTION A. INTERPRETATION, APPLICATION AND PAYMENTS                                                           
|Condition
    1. Definitions and Interpretation                                                               
|Condition 3. Payments by Licensee to the Authority                                                            
|Condition 4.
Basis of Charges for Use of System and Connection to System: Requirements for
Transparency       
|Condition 4A.
Non-Discrimination in the Provision of Use of System and Connection to System                   
|Condition    4B. Requirement to Offer Terms for Use of System and Connection                                  
|Condition    4C. Functions of the Authority                                                                   
|Condition 5. Distribution System Planning Standard and Quality of Service                                     
|Condition    6. Safety and Security of Supplies Enquiry Service                                               
|Condition 7.
Provision of Information about Theft or Abstraction of Electricity, Damage and Meter
Interference
|Condition    8. Provisions Relating to the Connection of Metering Equipment                                   
|Condition    9. Distribution Code                                                                             
|Condition    10.    Balancing and Settlement Code and NETA Implementation                                     
|Condition
    12
    .    Settlement Agreement for Scotland                                                   
|Condition 12A. Compliance
with the Trading Code in Scotland                                                   
|Condition 13.
    Change Co-ordination
for the Utilities Act 2000                                             
|Condition 14.
    The Master Registration
Agreement                                                           
|Condition 15.
    Compliance with
the Grid Codes                                                              
|Condition 16.
    Security Arrangements                                                                       
|Condition 17.
Provision
of Services
for Persons who are of Pensionable Age or Disabled or Chronically
Sick    
|Condition 18.
    Provision of Services
for Persons who are Blind or Deaf                                     
|Condition    19. Code of
    Practice on Procedures with Respect to Site Access                               
|Condition 20. Payments
in Relation
to Standards of Performance                                                
|Condition 21. Complaint
Handling Procedure                                                                    
|Condition 22. Preparation, Review of and Compliance with Customer Service Codes                               
|Condition 23. Record
of and Report
on Performance                                                             



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          Distribution    |   |                   
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|Standard
          Licence Conditions | 1 | September
    2001

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|Condition
    24. Provision of Information to the Authority                                                      | 75 
|---------------------------------------------------------------------------------------------------------------- | ---
|Condition
    25. Long Term Development Statement                                                                | 77 
|Condition
    26. Compliance with CUSC                                                                           | 81 
|Condition
    29. Disposal of Relevant Assets                                                                    | 84 
|SECTION C. DISTRIBUTION SERVICES OBLIGATIONS                                                                     | 88 
|Condition
    32. Interpretation of Section C (Distribution Services Obligations)                                | 88 
|Condition 32A. Convenience Customers                                                                             | 90 
|Condition
    34. Compulsory Acquisition of Land etc.                                                            | 92 
|Condition
    35. Other Powers etc.                                                                              | 93 
|Condition 36.
    Basis of Charges for Distributor Metering and Data Services: Requirements
    for Transparency | 94 
|Condition 36A.
Non-Discrimination in the Provision of Distributor Metering and Data Services                     | 96 
|Condition 36B.
Requirement to offer Terms for the Provision of Distributor Metering and Data
Services            | 97 
|Condition
    36C. Functions of the Authority                                                                    | 100
|Condition 37.
    The
Metering Point Administration Service and the Master Registration Agreement                | 102
|Condition
    38. Establishment of a Data Transfer Service                                                       | 105
|Condition 39.
    Restriction
on Use of Certain Information and Independence of the Distribution Business        | 108
|Condition
    40. Appointment of Compliance Officer                                                              | 114
|Condition
    41. Prohibition of Cross-Subsidies                                                                 | 117
|Condition
    42. Regulatory Accounts                                                                            | 118
|Condition
    42A. Change of Financial Year                                                                      | 124
|Condition
    43. Restriction on Activity and Financial Ring Fencing                                             | 126
|Condition
    44. Availability of Resources                                                                      | 129
|Condition
    45. Undertaking from Ultimate Controller                                                           | 132
|Condition
    46. Credit Rating of Licensee                                                                      | 134
|Condition
    49. Incentive Scheme and Associated Information                                                    | 142



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|Standard Licence Conditions | 1 | September
	    2001

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PART
I - TERMS OF THE LICENCE

|1.                                                                                                                                                                                                                                                                | This licence, treated as granted under section 6(1)(c) of the electricity act 1989 (the act), authorises NORWEB plc (a company registered in England and Wales under number
2366949) (the licensee) whose registered office is situated at Dawson House, Great Sankey, Warrington, Cheshire WA5 3LW to distribute electricity for the purpose of giving a supply to any premises in the specified area in schedule 1 or
enabling a supply to be so given during the period specified in paragraph 3 below, subject to:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                  | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                  | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                  | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                 
|2                                                                                                                                                                                                                                                                 | This licence is subject to transfer, modification or amendment in accordance with the provisions of the Act, the special conditions or the conditions.                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                 
|3                                                                                                                                                                                                                                                                 | This licence, unless revoked in accordance with the terms of Schedule 2, shall continue until determined by not less than 25 years notice in writing given by the Authority to the
licensee.                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                 
|4                                                                                                                                                                                                                                                                 | The provisions of section 109(1) of the Act (Service of documents) shall have effect as if set out herein as if for the words this Act there were substituted the words
this licence.                                                                                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                 
|5                                                                                                                                                                                                                                                                 | Without prejudice to sections 11 and 23(1) of the Interpretation Act 1978, Part I to IV inclusive of, and the Schedules to, this licence shall be interpreted and construed in like manner
as an Act of Parliament passed after the commencement of the Interpretation Act 1978.                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                 
|6                                                                                                                                                                                                                                                                 | References in this licence to a provision of any enactment, where after the date of this licence                                                                                                                                                                                                                                                                                                                                                                                                                         
|                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                  | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                  | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                 
|7.                                                                                                                                                                                                                                                                | Pursuant to paragraph 5 of standard condition 2 (Application of Section C (Distribution Services Obligations)) of the Electricity Distribution Licence the distribution services
area is specified in Schedule 3 hereto.                                                                                                                                                                                                                                                                                                
|                                                                                                                                                                                                                                                                 
|Pursuant
      to a licensing scheme made by the Secretary of State under Part II of Schedule
      7 to the Utilities Act 2000 on 28 September 2001 this licence was made
      and is treated as granted under section 6(1)(c) of the Electricity Act
    1989.

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PART
II. THE STANDARD CONDITIONSSECTION
A. INTERPRETATION, APPLICATION AND PAYMENTS

Condition
        1. Definitions and Interpretation

|1. | In
    these standard conditions, unless the context otherwise requires:
|-- | ------------------------------------------------------------------------
|   |                                                                         
|   |                                                                         
|   |                                                                         
|   |                                                                         
|   |                                                                         
|   |                                                                         
|   |                                                                         
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|   |                                                                         
|   |                                                                         
|   |                                                                         
|   |                                                                         
|   |                                                                         



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|Standard Licence Conditions | 1 | September
    2001

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| |  |                                   | (Restriction on Use of Certain Information and


Independence of the Distribution Business) only, has


the meaning given in that condition.                                                                                                                                                                                                                                                                                                                                              
| |  | --------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | auditors                        | means the licensees auditors for the time being


holding office in accordance with the requirements


of the Companies Act 1985.                                                                                                                                                                                                                                                                                                                                                        
| |  |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | authorised                      | in relation to any business or activity means


authorised by licence granted or treated as granted


under section 6 or by exemption granted under


section 5 of the Act.                                                                                                                                                                                                                                                                                                               
| |  |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | authorised electricity operator | means any person (other than the licensee) who is


authorised to generate, transmit, distribute, or supply


electricity and shall include any person who has


made an application to be so authorised which


application has not been refused and any person


transferring electricity to or from or across an


interconnector or Scottish interconnection or who


has made an application for use of an interconnector


or Scottish interconnection which has not been


refused.
| |  |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | the Authority                   | means the Gas and Electricity Markets Authority


established under section 1 of the Utilities Act 2000.                                                                                                                                                                                                                                                                                                                                                                                  
| |  |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | BSC                             | for the purposes of Section B only, has the meaning


given in standard condition 10 (Balancing and                                                                                                                                                                                                                                                                                                                                                                                       
| |  |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           



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|Standard Licence Conditions | 2 | September 2001

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| |  |                                      | Settlement Code and NETA Implementation).                                                                                                                                               
| |  | ------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                      |                                                                                                                                                                                         
| |  |  BSC Framework Agreement           | for the purposes of standard condition 10 (Balancing


and Settlement Code and NETA Implementation)


only, has the meaning given in that condition.                                    
| |  |                                      |                                                                                                                                                                                         
| |  | bilateral agreement                | for the purposes of standard condition 26


(Compliance with CUSC) only, has the meaning


given in that condition.                                                                     
| |  |                                      |                                                                                                                                                                                         
| |  | charge restriction conditions      | for the purposes of standard condition 49 (Incentive


Scheme and Associated Information) only, has the


meaning given in that condition.                                              
| |  |                                      |                                                                                                                                                                                         
| |  | charging review date               | for the purposes of standard condition 49 (Incentive


Scheme and Associated Information) only, has the


meaning given in that condition.                                              
| |  |                                      |                                                                                                                                                                                         
| |  | competent authority                | for the purposes of standard condition 39


(Restriction on Use of Certain Information and


Independence of the Distribution Business) only, has


the meaning given in that condition.
| |  |                                      |                                                                                                                                                                                         
| |  | confidential information           | for the purposes of standard condition 39


(Restriction on Use of Certain Information and


Independence of the Distribution Business) only, has


the meaning given in that condition.
| |  |                                      |                                                                                                                                                                                         
| |  | consolidated distribution business | for the purposes of standard condition 42


(Regulatory Accounts) only, has the meaning given                                                                                           



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|Standard Licence Conditions | 3 | September 2001

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| |  |                            | in that condition.                                                                                                                                                                                                                                                                                                             
| |  | -------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                            |                                                                                                                                                                                                                                                                                                                                
| |  | construction agreement   | for the purposes of standard condition 26


(Compliance with CUSC) only, has the meaning


given in that condition.                                                                                                                                                                                                            
| |  |                            |                                                                                                                                                                                                                                                                                                                                
| |  | Consumer Council         | means the Gas and Electricity Consumer Council as


established under section 2 of the Utilities Act 2000.                                                                                                                                                                                                                     
| |  |                            |                                                                                                                                                                                                                                                                                                                                
| |  | convenience customers    | means customers supplied or requiring to be


supplied at any premises which are (i) connected to


the licensees distribution system; and (ii) situated


within the distribution services area of a distribution


services provider other than the licensee.                                                               
| |  |                            |                                                                                                                                                                                                                                                                                                                                
| |  | core industry documents  | for the purposes of standard conditions 10


(Balancing and Settlement Code and NETA


Implementation) and 11 (Change Co-ordination for


NETA) only, has the meaning given in standard


condition 10; and for the purposes of standard


condition 26 (Compliance with CUSC) only, has the


meaning given in that condition.
| |  |                            |                                                                                                                                                                                                                                                                                                                                
| |  | cross-default obligation | for the purposes of standard condition 47


(Indebtedness) only, has the meaning given in that


condition.                                                                                                                                                                                                                    
| |  |                            |                                                                                                                                                                                                                                                                                                                                
| |  | current cost assets      | for the purposes of standard condition 42


(Regulatory Accounts) only, has the meaning given                                                                                                                                                                                                                                  



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|Standard Licence Conditions | 4 | September 2001

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| |  |                            | in
    that condition.                                                                                                                                                                           
| |  | -------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                            |                                                                                                                                                                                                  
| |  | CUSC                     | for the purposes of standard condition 26


(Compliance with CUSC) only, has the meaning


given in that condition.                                                                              
| |  |                            |                                                                                                                                                                                                  
| |  | CUSC Framework agreement | for the purposes of standard condition 26


(Compliance with CUSC) only, has the meaning


given in that condition.                                                                              
| |  |                            |                                                                                                                                                                                                  
| |  | customer                 | means any person supplied or requiring to be


supplied with electricity at any premises in Great


Britain, but shall not include any authorised


electricity operator in its capacity as such.
| |  |                            |                                                                                                                                                                                                  
| |  | data aggregation         | has the meaning given in standard condition 36B


(Requirement to Offer Terms for the Provision of


Distributor Metering and Data Services).                                                    
| |  |                            |                                                                                                                                                                                                  
| |  | data processing          | has the meaning given in standard condition 36B


(Requirement to Offer Terms for the Provision of


Distributor Metering and Data Services).                                                    
| |  |                            |                                                                                                                                                                                                  
| |  | data retrieval           | has the meaning given in standard condition 36B


(Requirement to Offer Terms for the Provision of


Distributor Metering and Data Services).                                                    
| |  |                            |                                                                                                                                                                                                  
| |  | data transfer service    | for the purposes of Section C only, has the meaning                                                                                                                                              



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Distribution    |   |               
|--------------------------- | - | --------------
|Standard
Licence Conditions | 5 | September 2001

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| |  |                             | given in standard
condition 32 (Interpretation of


Section C (Distribution
Services Obligations)).                                                                                                                                                                                   
| |  | --------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                             |                                                                                                                                                                                                                                                                                       
| |  | declared net capacity     | means,
	    in relation
to generation plant, the highest


generation of electricity
at the main alternator


terminals which
can be maintained for an indefinite


period of time
without causing damage to the plant,


less so much of
that capacity as is consumed by the


plant.
| |  |                             |                                                                                                                                                                                                                                                                                       
| |  | disposal                  | for the purposes
of standard condition 29 (Disposal


of Relevant Assets)
only, has the meaning given in


that condition.                                                                                                                                                            
| |  |                             |                                                                                                                                                                                                                                                                                       
| |  | distribution arrangements | has the meaning
given in standard condition 25


(Long Term Development
Statement).                                                                                                                                                                                                   
| |  |                             |                                                                                                                                                                                                                                                                                       
| |  | distribution business     | means a business
of the licensee, or in relation to
sub-paragraphs
(a) and (b) below, and except to the


extent otherwise
specified by the authority in a


direction to the
licensee, any business of any affiliate


or related undertaking
of the licensee comprising:            
| |  |                             |                                                                                                                                                                                                                                                                                       
| |  |                             | (a)                                                                                                                                                                                                                                                                                   
| |  |                             |                                                                                                                                                                                                                                                                                       
| |  |                             | (b)                                                                                                                                                                                                                                                                                   



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|--------------------------- | - | --------------
|Standard Licence Conditions | 6 | September 2001

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| |  |                                         |                                                                                                                                                                                                                                                         | and Data
      Services); and                                                                                                                                                                                                         
| |  | --------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                         |                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                       
| |  |                                         | (c)                                                                                                                                                                                                                                                     | the provision
      of the services specified in sub-paragraphs
      (a) and (b) of paragraph 1 of standard
      condition 36B (Requirement to Offer Terms
      for the Provision of Distributor Metering and
      Data Services),
| |  |                                         |                                                                                                                                                                                                                                                        
| |  |                                         | or
      any business ancillary thereto.                                                                                                                                                                                                               
| |  |                                         |                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                       
| |  | Distribution
      Code               | means
      a distribution code required to be prepared by a
      licensed distributor pursuant to standard condition 9
      (Distribution Code) and approved by the Authority as
      revised from time to time with the approval of the Authority.
| |  |                                         |                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                       
| |  | distribution
      licence            | means
      a distribution licence granted or treated as granted
      under section 6(1)(c) of the Act.                                                                                                                                               
| |  |                                         |                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                       
| |  | distribution
      services area      | has
      the meaning given at sub-paragraph 5(b) of standard
      condition 2 (Application of Section C (Distribution
      Services Obligations)).                                                                                                  
| |  |                                         |                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                       
| |  | Distribution
      Services Direction | has
      the meaning given in standard condition 2 (Application
      of Section C (Distribution ServicesObligations)).                                                                                                                               
| |  |                                         |                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                       
| |  | distribution
      services provider  | means
      a licensed distributor in whose licence Section
      C has effect.                                                                                                                                                                        



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      Distribution    |   |                     
|--------------------------------- | - | --------------------
|Standard
      Licence Conditions | 7 | September
      2001

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| |  | distribution
      system                     | means
      the system consisting (wholly or mainly) of electric
      lines owned or operated by an authorised distributor
      and used for the distribution of electricity from
      grid supply points or generation sets or other entry
      points (and bulk supply points in Scotland) to the
      points of delivery to customers or authorised electricity
      operators or any transmission company within
      Great Britain in its capacity as operator of a transmission
      system and includes any remote transmission
      assets (owned by a transmission licensee
      within England and Wales) operated by such
      distributor and any electrical plant, meters and metering
      equipment owned or operated by such distributor
      in connection with the distribution of electricity,
      but shall not include any part of a transmission
      system.
| |  | ----------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  | distributor
      metering and data  services | for
      the purposes of Section C only, has the meaning given
      in paragraph 9 of standard condition 36B (Requirement
      to Offer Terms for the Provision of Distributor
      Metering and Data Services).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |  |                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  | domestic
      customer                       | means
      a customer supplied or requiring to be supplied
      with electricity at domestic premises (but excluding
      such customer in so far as he is supplied or
      requires to be supplied at premises other than domestic
      premises).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  |                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  | domestic
      premises                       | means
      premises at which a supply is taken wholly or mainly
      for domestic purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      



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      Distribution    |   |                     
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|Standard
      Licence Conditions | 8 | September
      2001

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| |  | Electricity
      Arbitration Association | for
      the purposes of standard condition 39 (Restriction
      on Use of Certain Information and Independence
      of the Distribution Business) only, has the
      meaning given in that condition.                                                                                                                                                                                                                        
| |  | ------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | electricity
      supplier                | means
      any person authorised to supply electricity.                                                                                                                                                                                                                                                                                                                                                                          
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | estimated
      costs                     | for
      the purposes of standard condition 3 (Payments by
      the Licensee to the Authority) only, has the meaning
      given in that condition.                                                                                                                                                                                                                                                                             
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | existing
      connection                 | means,
      in relation to any premises, an existing connection
      to the licensees distribution system which
      does not require modification, or a new or modified
      connection to such system in respect of which
      all works have been completed, such that in either
      case electricity is able to be supplied to the premises
      in accordance with the terms of the relevant
      supply agreement.
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | external
      distribution activities    | for
      the purposes of standard condition 39 (Restriction
      on Use of Certain Information and Independence
      of the Distribution Business) only, has the
      meaning given in that condition.                                                                                                                                                                                                                        
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | financial
      year                      | subject
      to standard condition 42A (Change of Financial
      Year) (where applicable), means a period of
      12 months beginning on 1 April of each year and                                                                                                                                                                                                                                                              



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      Distribution    |   |                     
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|Standard
      Licence Conditions | 9 | September
      2001

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| |  |                            | ending
      on 31 March of the following calendar year.                                                                                                                                              
| |  | -------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                            |                                                                                                                                                                                                       
| |  | Fuel
      Security Code | for
      the purposes of Section B only, has the meaning given
      in standard condition 16 (Security Arrangements).                                                                               
| |  |                            |                                                                                                                                                                                                       
| |  | generation
      set     | means
      any plant or apparatus for the production of electricity
      and shall where appropriate include a generating
      station comprising more than one generation
      set.              
| |  |                            |                                                                                                                                                                                                       
| |  | Grid
      Code          | means
      the Grid Code which each transmission company
      is required to prepare and have approved by
      the Authority as from time to time revised with the
      approval of the Authority.
| |  |                            |                                                                                                                                                                                                       
| |  | grid
      supply point  | means
      any point at which electricity is delivered from
      a transmission system to any distribution system.                                                                                  
| |  |                            |                                                                                                                                                                                                       
| |  | the
      handbook       | for
      the purposes of standard condition 42 (Regulatory
      Accounts) only, has the meaning given in
      that condition.                                                                      
| |  |                            |                                                                                                                                                                                                       
| |  | holding
      company    | means
      a company within the meaning of sections 736,
      736A and 736B of the Companies Act 1985.                                                                                              
| |  |                            |                                                                                                                                                                                                       
| |  | indebtedness             | for
      the purposes of standard condition 47                                                                                                                                                       



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      Distribution    |    |                     
|--------------------------------- | -- | --------------------
|Standard
      Licence Conditions | 10 | September
      2001

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| |  |                   | (Indebtedness)
      only, has the meaning given in that condition.                                                                                                                                                                                                                                                                                            
| |  | ----------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                   |                                                                                                                                                                                                                                                                                                                                                                
| |  | information     | includes
      any documents, accounts, estimates, returns,
      records or reports and data in written, verbal or
      electronic form and information in any form or medium
      whatsoever (whether or not prepared specifically
      at the request of the Authority or the Consumer
      Council) of any description specified bythe
      Authority.
| |  |                   |                                                                                                                                                                                                                                                                                                                                                                
| |  | interconnection | means:                                                                                                                                                                                                                                                                                                                                                         
| |  |                   |                                                                                                                                                                                                                                                                                                                                                                
| |  |                   | the
      275 kV and 400 kV circuits between and including
      the associated switchgear at Harker sub- station
      in Cumbria and the associated switchgear at Strathaven
      sub-station in Lanarkshire;                                                                                                                                               
| |  |                   |                                                                                                                                                                                                                                                                                                                                                                
| |  |                   | the
      275 kV transmission circuit between and including
      the associated switchgear at Cockenzie in East
      Lothian and the associated switchgear at Stella in
      Tyne and Wear; and                                                                                                                                                             
| |  |                   |                                                                                                                                                                                                                                                                                                                                                                
| |  |                   | the
      400 kV transmission circuit between and including
      the associated switchgear at Torness in East
      Lothian and the associated switchgear at Stella in
      Tyne and Wear                                                                                                                                                                    
| |  |                   |                                                                                                                                                                                                                                                                                                                                                                
| |  |                   | all
      as existing at the date on which the transmission licence
      comes into force as from time to time maintained,
      repaired or renewed, together with any                                                                                                                                                                                       



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|Standard
      Licence Conditions | 11 | September
      2001

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| |  |                     | alteration, modification or addition (other than
maintenance, repair or renewal) which is primarily
designed to effect a permanent increase in one or
more particular interconnection capacities as they
exist immediately prior to such alteration,
modification or addition and as from time to time
maintained, repaired or renewed; and
| |  | ------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                     |                                                                                                                                                                                                                                                                                                                                            
| |  |                     | the 132 kV transmission circuit between and
including (and directly connecting) the associated
switchgear at Chapelcross and the associated
switchgear at Harker sub-station in Cumbria; and                                                                                                                                               
| |  |                    
| |  |                    
| |  |                    
| |  |                     |                                                                                                                                                                                                                                                                                                                                            
| |  |                     | the 132 kV transmission circuit between and
including (and connecting, via Junction V) the
associated switchgear at Chapelcross and the
associated switchgear at Harker sub-station in
Cumbria                                                                                                                                             
| |  |                    
| |  |                    
| |  |                    
| |  |                    
| |  |                     |                                                                                                                                                                                                                                                                                                                                            
| |  |                     | all as existing at the date on which the transmission
licence comes into force and as from time to time
maintained, repaired or renewed.                                                                                                                                                                                                   
| |  |                    
| |  |                    
| |  |                     |                                                                                                                                                                                                                                                                                                                                            
| |  | interconnector(s) | means the electric lines and electrical plant and
meters owned or operated by a transmission
company solely for the transfer of electricity to or from
    a transmission system into or out of Englandand
    Wales.                                                                                                                      
| |  |                     |                                                                                                                                                                                                                                                                                                                                            
| |  | investment        | for the purposes of Section C only, has the meaning                                                                                                                                                                                                                                                                                        



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|Standard Licence Conditions | 12 | September 2001

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| |  |                                              | given in standard condition 43 (Restriction on
Activity and Financial Ring Fencing).                                                                                                                                   
| |  | -------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                             
| |  |                                              |                                                                                                                                                                                                                        
| |  | investment
      grade issuer creditrating | for
      the purposes of Section C only, has the meaning given
      in standard condition 46 (Credit Rating of Licensee).                                                                                            
| |  |                                              |                                                                                                                                                                                                                        
| |  | licensed distributor                       | means any holder of a distribution licence.                                                                                                                                                                            
| |  |                                              |                                                                                                                                                                                                                        
| |  | licensees Distribution Code               | means the distribution code required to be prepared
by the licensee pursuant to standard condition 9
(Distribution Code) and approved by the Authority
as revised from
time to time with the approval of the Authority.
| |  |                                              |                                                                                                                                                                                                                        
| |  | licensees distribution system             | means the distribution
system owned or operated by the licensee.                                                                                                                                                       
| |  |                                              |                                                                                                                                                                                                                        
| |  | Master Registration Agreement              | means the agreement of that title referred to and comprising such matters as are set out in standard condition 37 (The Metering Point Administration Service and the Master Registration Agreement).                   
| |  |                                              |                                                                                                                                                                                                                        
| |  | metering equipment                         | includes any electricity meter and any associated
equipment which
materially affects the operation of that meter.                                                                                                      
| |  |                                             
| |  |                                              |                                                                                                                                                                                                                        
| |  | Metering Point Administration
Service      | for the purposes of Section C only, has the meaning
given in standard condition 32 (Interpretation of
Section C (Distribution Services Obligations)).                                                                  
| |  |                                              |                                                                                                                                                                                                                        
| |  | metering point administration               | for the purposes of Section C only, has the meaning                                                                                                                                                                    



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|Standard Licence Conditions | 13 | September 2001

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| |  | services                                                        | given
        in standard condition 32 (Interpretation of Section
    C (Distribution Services Obligations)).                                                                                                                                                                                                                                                  
| |  | ---------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                                                 
| |  |                                                                  |                                                                                                                                                                                                                                                                                                                                                                
| |  | Metering
        Point Administration Service
        operator | has
        the meaning given in standard condition 38 (Establishment
    of a Data Transfer Service).                                                                                                                                                                                                                                                         
| |  |                                                                  |                                                                                                                                                                                                                                                                                                                                                                
| |  | non-domestic
        customer                                  | means
    a customer who is not a domestic customer.                                                                                                                                                                                                                                                                                                           
| |  |                                                                  |                                                                                                                                                                                                                                                                                                                                                                
| |  | other
        Distribution Codes                               | means
        the distribution codes which the holder(s) of a distribution
        licence (other than the licensee) are required
        to draw up and have approved by the Authority
        pursuant to standard condition 9 (Distribution
        Code) of their distribution licence, as from
    time to time revised with the approval of the Authority
| |  |                                                                  |                                                                                                                                                                                                                                                                                                                                                                
| |  | owned                                                          | in
        relation to an electricity meter or other property includes
        leased and cognate expressions shall be construed
    accordingly.                                                                                                                                                                                                              
| |  |                                                                  |                                                                                                                                                                                                                                                                                                                                                                
| |  | participating
        interest                                 | has
        the meaning given by section 260 of the Companies
        Act 1985 as amended by section 22 of the
    Companies Act 1989.                                                                                                                                                                                                                         
| |  |                                                                  |                                                                                                                                                                                                                                                                                                                                                                
| |  | permitted
        purpose                                      | for
        the purposes of Section C only, has the meaning given
        in standard condition 32 (Interpretation of Section
    C (Distribution Services Obligations)).                                                                                                                                                                                      
| |  |                                                                  |                                                                                                                                                                                                                                                                                                                                                                
| |  | Pooling
        and                                             | means
    the agreement of that title approved by the                                                                                                                                                                                                                                                                                                          



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|Standard Licence Conditions | 14 | September 2001

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| |  | Settlement Agreement                  | Secretary of State as from time to time amended.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  | -------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | regulatory instructions and
guidance | for the purposes of standard condition 49 (Incentive
Scheme and Associated Information) only, has the
meaning given in that condition.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | 
| | 
| |  |                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | related undertaking                  | in relation to the licensee means any undertaking in
      which the licensee has a participating interest.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  |                                       
| |  |                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | relevant asset                       | means any asset for the time being forming part of
      the licensees distribution system, any control centre
      for use in conjunction therewith, and any legal or
      beneficial interest in land upon which any of the
      foregoing is situate (which for the purposes of
      property located in Scotland means any estate,
      interest, servitude or other heritable or leasehold
      right in or over land including any leasehold
      interests or other rights to occupy or use and any
      contractual or personal rights relating to such
      property or the acquisition thereof).
| |  |                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | relevant duties                      | for the purposes of standard condition 40
      (Appointment of a Compliance Officer) only, has
      the meaning given in that condition.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |  |                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | relevant proportion                  | for the purposes of standard condition 3 (Payments
      by the Licensee to the Authority) only, has the
      meaning given in that condition.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     



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|Standard Licence Conditions | 15 | September 2001

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| |                              | relevant year                                                                                                                                     | for the purposes of standard condition 3 (Payments
by the Licensee to the Authority) only, has the
meaning given in that condition; and for the
purposes of standard condition 48 (Last Resort
Supply: Payment Claims) only, has the meaning
given in that condition.
| | ---------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                              |                                                                                                                                                     |                                                                                                                                                                                                                                                                      
| |                              | relinquishment of operational
control                                                                                                             | for the purposes of standard condition 29 (Disposal
of Relevant Assets) only, has the meaning given in
that condition.                                                                                                                                               
| |                             
| |                              |                                                                                                                                                     |                                                                                                                                                                                                                                                                      
| | remote transmission assets | means any electric lines, electrical plant or meters in
England and Wales owned by a transmission
company (the owner transmission company)
which:
| |                              |                                                                                                                                                     |                                                                                                                                                                                                                                                                      
| |                              |                                                                                                                                                     | (a)                                                                                                                                                                                                                                                                  
| |                              |                                                                                                                                                    
| |                              |                                                                                                                                                    
| |                              |                                                                                                                                                    
| |                              |                                                                                                                                                    
| |                              |                                                                                                                                                    
| |                              |                                                                                                                                                    
| |                              |                                                                                                                                                     |                                                                                                                                                                                                                                                                      
| |                              |                                                                                                                                                     | (b)                                                                                                                                                                                                                                                                  
| |                              |                                                                                                                                                    
| |                              |                                                                                                                                                    
| |                              |                                                                                                                                                    
| |                              |                                                                                                                                                    
| |                              |                                                                                                                                                     |                                                                                                                                                                                                                                                                      
| |                              | Scottish interconnection                                                                                                                          | means such part of the interconnection as is
situated in Scotland.                                                                                                                                                                                                   
| |                              |                                                                                                                                                    
| |                              |                                                                                                                                                     |                                                                                                                                                                                                                                                                      
| |                              | Secretary of States costs                                                                                                                        | for the purposes of standard condition 3 (Payments                                                                                                                                                                                                                   



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|Standard Licence Conditions | 16 | September 2001

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| |  |                                           | by
        Licensee to the Authority) only, has the meaning given
    in that condition.                                                                                                                
| |  | ----------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                           |                                                                                                                                                                                                         
| |  | separate
      business                 | for
      the purposes of standard condition 39 (Restriction
      on Use of Certain Information and Independence
      of the Distribution Business) only, has the
    meaning given in that condition.
| |  |                                           |                                                                                                                                                                                                         
| |  | the
      scheme                        | for
      the purposes of standard condition 49 (Incentive  Scheme
      and Associated Information) only, has the meaning
    given in that condition.                                                 
| |  |                                           |                                                                                                                                                                                                         
| |  | Settlement
      Agreement for Scotland | has
      the meaning given in standard condition 12 (Settlement
    Agreement for Scotland).                                                                                                           
| |  |                                           |                                                                                                                                                                                                         
| |  | settlement
      purposes               | means
      for the purposes of settlement as set out in the Balancing
      and Settlement Code or the Settlement Agreement
    for Scotland.                                                          
| |  |                                           |                                                                                                                                                                                                         
| |  | specified
      information             | for
      the purposes of standard condition 49 (Incentive Scheme
      and Associated Information) only, has the meaning
    given in that condition.                                                  
| |  |                                           |                                                                                                                                                                                                         
| |  | standby                                 | means
    the periodic or intermittent supply or sale of electricity:                                                                                                                                   
|
| |  |                                           | (a)                                                                                                                                                                                                     
|



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|Standard Licence Conditions | 17 | September 2001

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| |  |                      | (b)                                                                                                                | to a customer of the licensee to make good any
shortfall between the customers total supply
requirements and that met either by its own
generation or by electricity supplied by an
electricity supplier other than the licensee.
| |  | -------------------- | ------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                      |                                                                                                                   
| |  | statutory accounts | means the accounts that the licensee prepares under
the Companies Act 1985 (as amended by the
Companies Act 1989).
| |  |                      |                                                                                                                   
| |  | subsidiary         | means a subsidiary within the meanings of sections
736, 736A and 736B of the Companies Act 1985.                  
| |  |                      |                                                                                                                   
| |  | supply licence`    | means a supply licence granted or treated as granted
under section 6(1)(d) of the Act.                            
| |  |                      |                                                                                                                   
| |  | top-up             | means the supply or sale of electricity on a
continuing or regular basis:                                         
| |  |                      |                                                                                                                    |                                                                                                                                                                                                                                   
| |  |                      | (a)                                                                                                                | to an authorised electricity operator to make
good any shortfall in the availability of
electricity to that operator for the purposes of
its supply of electricity to persons seeking
such supply; or                             
| |  |                      |                                                                                                                    |                                                                                                                                                                                                                                   
| |  |                      | (b)                                                                                                                | to a customer of the licensee to make good
any shortfall between the customers total
supply requirements and that met either by its
own generation or by electricity supplied by                                                 



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|Standard Licence Conditions | 18 | September 2001

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| |  |                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | an electricity supplier other than the licensee.                                      
| |  | ---------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------
| |  |                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | trading code         | for the purposes of Section B only, has the meaning
given in standard condition 12A (Compliance with
Trading Code in Scotland).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  |                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | transmission company | means the holder for the time being of a
transmission licence.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  |                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | transmission licence | means a transmission licence granted or treated as
granted under section 6(1)(b) of the Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  |                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | transmission system  | means a system consisting (wholly or mainly) of
high voltage electric lines owned or operated by a
transmission company and used for the transmission
of electricity from one generating station to a sub-
station or to another generating station, or between
sub-stations or to or from any interconnector or
Scottish interconnection in question and in relation
to Scotland including any interconnector and
Scottish interconnection, and includes any electrical
plant and meters owned or operated by the
transmission company in connection with the
transmission of electricity but shall not include any
remote transmission assets.
| |  |                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | ultimate controller  | means:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |  |                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                       
| |  |                        | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | a holding company of the licensee which is
not itself a subsidiary of another company;



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|Standard Licence Conditions | 19 | September 2001

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| |  |                    |                                                                                                                                                               | and                                                                                                                                                                                                                                |                                                                                                                                                               
| |  | ------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                    |                                                                                                                                                               |                                                                                                                                                                                                                                   
| |  |                    | (b)                                                                                                                                                           | any person who (whether alone or with a  person or persons connected with him) is ina position to control, or to exercisesignificant influence over, the policy of thelicensee or any holding company of thelicensee by virtue of:
| |  |                    |                                                                                                                                                               |                                                                                                                                                                                                                                    |                                                                                                                                                               
| |  |                    |                                                                                                                                                               | (i)                                                                                                                                                                                                                                | rights under contractual
arrangements to which he is a party
or of which he is a beneficiary; or                                                              
| |  |                    |                                                                                                                                                               |                                                                                                                                                                                                                                    |                                                                                                                                                               
| |  |                    |                                                                                                                                                               | (ii)                                                                                                                                                                                                                               | rights of ownership (including
rights attached to or deriving
from securities or rights under

a trust) which are held by him
or of which he is a beneficiary;
| |  |                    |                                                                                                                                                               | but excluding any director or employee of acorporate body in his capacity as such; and                                                                                                                                            
| |  |                    |                                                                                                                                                               |                                                                                                                                                                                                                                   
| |  |                    | (c)                                                                                                                                                           | for the purposes of sub-paragraph (b), a
person is connected with another person if
they are party to any arrangement regarding
the exercise of any such rights as are
described in that paragraph.                               
| |  |                    |                                                                                                                                                              
| |  | undertaking      | has the meaning given by section 259 of the
Companies Act 1985.                                                                                              
| |  |                    |                                                                                                                                                              
| |  | unmetered supply | means a supply of electricity to premises which is
not, for the purpose of calculating the charges for
electricity supplied to the customer at such premises,



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|Standard Licence Conditions | 20 | September 2001

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| |  |                         | measured by metering equipment.                                                                                                                                                                                                                                                                                                             
| |  | ----------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                         |                                                                                                                                                                                                                                                                                                                                             
| |  | use of system         | means use of the licensees distribution system for
the distribution of electricity by the licensee for any
person.                                                                                                                                                                                                                         
| |  |                         |                                                                                                                                                                                                                                                                                                                                             
| |  | use of system charges | means charges made or levied or to be made or
levied by the licensee for the provision of services as
part of the distribution business to any person as
more fully described in standard condition 4 (Basis
of Charges for Use of System and Connection to
System: Requirements for Transparency) but shall
not include connection charges.

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2. | Any words or expressions used in the Utilities Act 2000 or Part I of the Act shall, unless the contrary intention appears, have the same meanings when used in the standard
conditions.                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|3. | Except where the context otherwise requires, any reference to a numbered standard condition (with or without a letter) or Schedule is a reference to the standard condition (with or without a
letter) or Schedule bearing that number in this licence, and any reference to a numbered paragraph (with or without a letter) is a reference to the paragraph bearing that number in the standard condition or Schedule in which the reference occurs,
and reference to a Section is a reference to that Section in these standard conditions.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|4. | These standard conditions shall have effect as if, in relation to a licence holder who is a natural person, for the words it, its and which there were
substituted the words he, him, his, who and whom, and cognate expressions shall be construed accordingly.                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              



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|Standard Licence Conditions | 21 | September 2001

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|Alterations
            to Standard Conditions of Distribution Licences                                                                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                        
|AMENDMENTS
        TO STANDARD CONDITION 1 BY THE ALTERATION OF THE DEFINITIONS OF Master
        Registration Agreement, Metering Point Administration Service AND metering
        point
administration services

Condition 1. Definitions
and Interpretation

| |  | Master Registration Agreement          | means the agreement of that title referred to and comprising such matters as are set out in standard condition 14 (Provision of the Metering Point Administration Service and Compliance with the Master
Registration Agreement) and standard condition 37 (The Metering Point Administration Service and the Master Registration Agreement).                                                    
| |  | ---------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                         
| |  |                                         
| |  |                                          |                                                                                                                                                                                                                                                                                                                                                                                                  
| |  | Metering Point Administration Service  | means the service to be established, operated and 
maintained by the licensee in accordance with standard 
condition 14 (Provision of the Metering Point Administration Service and Compliance with the Master Registration Agreement).                                                                                                                                                          
| |  |                                         
| |  |                                         
| |  |                                          |                                                                                                                                                                                                                                                                                                                                                                                                  
| |  | metering point administration services | means the services of the Metering Point Administration Service established in accordance with standard 
condition 14 (Provision of the Metering Point Administration Service and Compliance with the Master Registration Agreement) or, where the context requires, in accordance with standard condition 37 (The Metering 
Point Administration Service and the Master Registration Agreement).
| |  |                                         
| |  |                                         
| |  |                                         

1

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|5.  | Except where the context otherwise requires, a reference in a standard condition
    to a paragraph is a reference to a paragraph of that standard condition and
    a reference in a paragraph to a sub-paragraph is a reference to a sub-paragraph
    of that paragraph.                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|6.  | Any reference in these standard conditions to -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   
|    | shall, if these standard conditions or the standard conditions in question
  come to be modified, be construed, so far as the context permits, as a reference
  to the corresponding provision of these standard conditions or the other standard
  conditions in question as modified.                                                                                                                                                                                                                                         
|   
|7.  | In construing these standard conditions, the heading or title of any standard
    condition or paragraph shall be disregarded.                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|8.  | Any reference in a standard condition to the purposes of that condition generally
    is a reference to the purposes of that standard condition as incorporated
    in this licence and as incorporated in each other licence under section 6(1)(c)
    of the Act (whenever granted) which incorporates it.                                                                                                                                                                                                                    
|   
|9.  | Where any obligation of the licence is required to be performed by a specified
    date or time, or within a specified period, and where the licensee has failed
    so to perform, such obligation shall continue to be binding and enforceable
    after the specified date or time, or after the expiry of the specified period
    (but without prejudice to all the rights and remedies available against the
    licensee by reason of the licensees failure to perform by that date
    or time, or within that period).
|   
|10. | Anything required by or under these standard conditions to be done in writing
    may be done by facsimile transmission of the instrument in question or by
    other electronic means and, in such case                                                                                                                                                                                                                                                                                                                       



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|Standard Licence Conditions | 22 | September 2001

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|    | (a)                                                                                                                                                                                                                      | the original instrument or other confirmation in writing shall be delivered
    or sent by pre-paid first-class post as soon as is reasonably practicable,
    and                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    | (b)                                                                                                                                                                                                                      | where the means of transmission had been agreed in advance between the parties
    concerned, in the absence of and pending such confirmation, there shall be
    a rebuttable presumption that what was received duly represented the original
    instrument.
|   
|11. | The definitions referred to in this condition may include some definitions
    which are not used or not used exclusively in Sections A and B (which Sections
    are incorporated in all distribution
licences). Where:
|   
|    | (a)                                                                                                                                                                                                                      | any definition is not used in Sections A and B, that definition shall, for
    the purposes of this licence, be treated:                                                                                                                                       
|   
|    |                                                                                                                                                                                                                          | (i)                                                                                                                                                                                                                                                            
|   
|    |                                                                                                                                                                                                                          | (ii)                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                
|   
|    | (b)                                                                                                                                                                                                                      | any definition which is used in Sections A and B is also used in one or more
    other Sections:                                                                                                                                                               
|   
|    |                                                                                                                                                                                                                          | (i)                                                                                                                                                                                                                                                            



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|--------------------------- | -- | --------------
|Standard
Licence Conditions | 23 | September 2001

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| |  | (ii) | if any such standard condition is modified so as to omit that definition,
    then the reference to that definition in this condition shall automatically
    cease to have effect.
| |  | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|--------------------------- | -- | --------------
|Standard
Licence Conditions | 24 | September 2001

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Condition 2. Application of Section C (Distribution Services Obligations)

|1. | Where the Secretary of State provides, by a scheme made under Schedule 7
    to the Utilities Act 2000, for Section C (in whole or in part) to have effect
    within this licence:                                                                                                  
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (a)                                                                                                                                                                                                                                                                                  
|   | (b)                                                                                                                                                                                                                                                                                  
|  
|   | from the date the said scheme takes effect. Such provision made by the Secretary
of State in the said scheme shall be treated, for the purposes of paragraphs
5, 6, and 7 of this condition, as if it were a Distribution Services Direction
made by the Authority.                  
|  
|2. | Until -                                                                                                                                                                                                                                                                              
|  
|   | (a)                                                                                                                                                                                                                                                                                  
|   | (b)                                                                                                                                                                                                                                                                                  
|  
|   | the standard conditions in Section C (in whole or, as the case may be, in part)
shall not have effect within this licence; and the licensee shall not be obliged
to comply with any of the requirements of Section C (in whole or, as the case
may be, in part) of this licence.     
|  
|3. | Except where paragraph 1 applies to the licensee, paragraphs 4 to 8 of this
    standard condition shall be suspended and shall have no effect in this licence
    until such time as the Authority, with the consent of the licensee, issues
    to the licensee a notice ending the



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Distribution    |    |               
|--------------------------- | -- | --------------
|Standard Licence Conditions | 25 | September 2001

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|   | suspension
      and providing for those paragraphs to have effect in this licence with effect
      from the date specified in the notice.                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|4. | The
      Authority may, with the consent of the licensee, issue a direction (a Distribution
      Services Direction). Where the Authority has issued to the licensee
      a Distribution Services Direction the standard conditions in Section C (in
      whole or, as the case may be, in part) shall have effect within this licence
      from the date specified in the direction; and the licensee shall be obliged
      to comply with the requirements of Section C (in whole or, as the case may
      be, in part) to the extent and subject to the terms specified in such direction.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|5. | A
      Distribution Services Direction:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|6. | The
      Authority may, with the consent of the licensee:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|7. | The
      variation or cessation provided for in paragraph 6 shall take effect from
      the date specified in the variation or cessation notice given to the licensee
      by the Authority.                                                                                                                                                                                                                                                                                                                                                                                                       



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      Distribution    |    |                     
|--------------------------------- | -- | --------------------
|Standard
      Licence Conditions | 26 | September
      2001

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|8. | With
      effect from the date of cessation referred to in paragraph 7, paragraphs
      4 to 7 of this condition shall be suspended and shall cease to have effect
      in this licence, but the Authority may at any time thereafter, with the
      consent of the licensee, give to the licensee a notice ending the suspension
      and providing for those paragraphs to have effect again in this licence
      with effect from the date specified in the notice.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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      Distribution    |    |                     
|--------------------------------- | -- | --------------------
|Standard
      Licence Conditions | 27 | September
      2001

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Condition
  3. Payments by Licensee to the Authority

|1. | The
      licensee shall, at the times stated, pay to the authority such amounts as
      are determined by or under this condition.                             
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                  
|2. | In
      respect of each relevant year at the beginning of which the licensee holds
      this licence, the licensee shall pay to the Authority the aggregate of:
|   |                                                                                                                                                                  
|   | (a)                                                                                                                                                              
|   |                                                                                                                                                                  
|   | (b)                                                                                                                                                              
|   |                                                                                                                                                                  
|   | (c)                                                                                                                                                              
|   |                                                                                                                                                                  
|   | (d)                                                                                                                                                              
|   |                                                                                                                                                                  
|   | (e)                                                                                                                                                              
|   |                                                                                                                                                                  
|   |                                                                                                                                                                  
|   |                                                                                                                                                                  
|   |                                                                                                                                                                  



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      Distribution    |    |                     
|--------------------------------- | -- | --------------------
|Standard
      Licence Conditions | 28 | September
      2001

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | of State
      for the previous relevant year or, in the case of the Competition Commission,
      for the relevant year prior to the previous relevant year; and                                                                          
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                            
|   | (f)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | in respect
      of the relevant year ending on 31 March 2002, an amount which is the relevant
      proportion of the actual unrecovered costs of the Director General of Electricity
      Supply and the Relevant Consumers Committees.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                            
|3. | The
      amounts determined in accordance with paragraph 2 shall be paid by the licensee
      to the Authority in two instalments, with:                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                            
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | the first
      instalment being due for payment by 30 June in each year; and                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                            
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | the second
      instalment being due for payment by 31 January in each year                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                            
|   | provided
      that, in each case, if the Authority has not given notice of the amount
      of the instalment due at least 30 days before the payment date stated above,
      the licensee shall pay the amount due within 30 days from the actual giving
      of notice by the Authority to the licensee (whenever notice is given).                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                            
|4. | Where
      the licensee fails to pay the amount determined in accordance with paragraph
      2 within 30 days of the due date set out in paragraph 3, it shall pay simple
      interest on the amount at the rate which is from time to time equivalent
      to the base rate of NatWest Bank plc or, if there is no such base rate,
      such base rate as the Authority may designate for the purposes hereof.                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                            
|5. | In
      relation to any data or information specified by the Authority in a direction
      given for the purposes of this condition generally, the licensee shall submit
      a certificate to the Authority, approved by a resolution of the board of
      directors of the licensee and signed by a director of the licensee pursuant
      to that resolution. Such certificate shall be submitted to the Authority
      each year on the date specified by the Authority. Each certificate shall
      be in the following form 



|Electricity
      Distribution    |    |                     
|--------------------------------- | -- | --------------------
|Standard
      Licence Conditions | 29 | September
      2001

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|   | In
      the opinion of the directors of [the licensee], all data and information
      provided to the Authority on [date provided to the Authority] for the purposes
      of enabling the Authority to calculate the licence fee payable by [the licensee]
      pursuant to standard condition 3 (Payments by the Licensee to the Authority)
      is accurate.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                      
|6. | In this
      condition:                                                                                                                                                                                                                                                                                                                                             

| |  |                                    |                                                                                                                                                                                                                       |                                                                                                                                      
| |  | ---------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------
| |  | estimated
      costs            | means
      costs estimated by the Authority as likely to be:                                                                                                                                                        
| |  |                                    |                                                                                                                                                                                                                       |                                                                                                                                      
| |  |                                    | (a)                                                                                                                                                                                                                   | the
      costs of the Authority and the consumer Council; and                                                                       
| |  |                                    |                                                                                                                                                                                                                       |                                                                                                                                      
| |  |                                    | (b)                                                                                                                                                                                                                   | the
      costs incurred by the Competition Commission, such estimate having regard
      to the views of the Competition Commission.
| |  |                                    |                                                                                                                                                                                                                       |                                                                                                                                      
| |  | relevant
      proportion        | means
      the proportion of the costs attributable to the licensee in accordance with
      principles determined by the Authority for the purposes of this condition
      generally and notified to the licensee.
| |  |                                    |                                                                                                                                                                                                                       |                                                                                                                                      
| |  | relevant
      year              | means
      a year beginning on 1 April of each calendar year and ending on 31 March
      of the following calendar year.                                                                                           
| |  |                                    |                                                                                                                                                                                                                       |                                                                                                                                      
| |  | Secretary
      of States costs | means
      costs estimated by the Secretary of State as likely to be his costs in relation
      to:                                                                                                                
| |  |                                    |                                                                                                                                                                                                                       |                                                                                                                                      
| |  |                                    | (a)                                                                                                                                                                                                                   | the
      establishment of the Authority and the Consumer Council; and                                                               
| |  |                                    |                                                                                                                                                                                                                       |                                                                                                                                      
| |  |                                    | (b)                                                                                                                                                                                                                   | Schedule
      7 to the Utilities Act 2000.                                                                                          

|   |                                               
|-- | ----------------------------------------------
|5. | In sub-paragraph
      2(f) of this condition:

| |  |                                              |                                                                        
| |  | -------------------------------------------- | -----------------------------------------------------------------------
| |  | Director
    General of Electricity Supply | means
    the office previously established under section 1 of the Act;



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      Distribution    |    |                     
|--------------------------------- | -- | --------------------
|Standard
      Licence Conditions | 30 | September
      2001

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| |  | Relevant
         ConsumersCommittees |  | means the
      committees previously appointed by the Director
      General of Electricity Supply under section 2of that Act
| |  | ---------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------



|Electricity
      Distribution    |    |               
|--------------------------------- | -- | --------------
|Standard
      Licence Conditions | 31 | September 2001

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Schedule Modification
    of existing provisions of the distribution licence


Condition
  1. Definitions and Interpretation

|[The
      following modifications would have effect in this condition]:
|------------------------------------------------------------------------
|                                                                        
|                                                                        
|                                                                        
|                                                                        



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| | use
      of system charges              |  | means
      charges made or levied, or tobe
      made or levied, by the licensee for  the provision
      of services as part of the distribution business
      to any person, as more fully described in standard condition 4 (Use of System
      Charging Methodology) and 4A (Charges for Use of System), but does not include connection
      charges.
| | ------------------------------------------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                            |  |                                                                                                                                                                                                                                                                                                                                                               
| | use
      of system charging methodology |  | means
         the principles on which andthe methods by which, for the purposes of achieving the objectives
       referred to in paragraph 3 of standard condition 4 (Use of System Charging

      Methodology), use of system
       charges are determined.                                                                                              



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Condition
  4. Use of System Charging Methodology

|1. | The
      licensee shall, by 1 April 2005:                                                                                                           
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (a)                                                                                                                                                  
|  
|   | (b)                                                                                                                                                  
|  
|2. | The
      licensee shall, for the purpose of ensuring that the use of system charging
      methodology continues to achieve the relevant objectives:
|   |                                                                                                                                                      
|   | (a)                                                                                                                                                  
|   |                                                                                                                                                      
|   | (b)                                                                                                                                                  
|   |                                                                                                                                                      
|3. | For
      the purposes of this condition, the relevant objectives are:                                                                               
|   |                                                                                                                                                      
|   | (a)                                                                                                                                                  
|   |                                                                                                                                                      
|   | (b)                                                                                                                                                  



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|   | (c)                                                                                                                                                 | that
      compliance with the use of system charging methodology results in charges
      which reflect, as far as is reasonably practicable (taking account of implementation
      costs), the costs incurred by the licensee in its distribution business;
      and
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                     |                                                                                                                                                                                                                                                                         
|   | (d)                                                                                                                                                 | that,
      so far as is consistent with sub-paragraphs (a), (b) and (c), the use of
      system charging methodology, as far as is reasonably practicable, properly
      takes account of developments in the licensees distribution business.                      
|   |                                                                                                                                                     |                                                                                                                                                                                                                                                                         
|4. | Except
      with the consent of the Authority, before making a modification of the use
      of system charging methodology the licensee shall:   
|   |                                                                                                                                                     |                                                                                                                                                                                                                                                                         
|   | (a)                                                                                                                                                 | give
      the Authority a report which sets out:                                                                                                                                                                                                                       
|   |                                                                                                                                                     |                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                     | (i)                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                     |                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                     | (ii)                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                     |                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                     | (iii)                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                     |                                                                                                                                                                                                                                                                         
|   | (b)                                                                                                                                                 | where
      the Authority has directed that sub-paragraph (a) should not apply, comply
      with such other requirements (if any) as the Authority may specify in its
      direction.                                                                                 
|   |                                                                                                                                                     |                                                                                                                                                                                                                                                                         
|5. | Subject
      to paragraph 6, where the licensee has complied with the requirements of
      paragraph 4, it shall, before making the modification:



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|   | (a)                                                                                                                                                                                                                                                                                                                                               | revise the statement (or the most recent revision thereof) issued under paragraph
    1(a) of this condition so that the statement sets out the changed use of
    system charging methodology and specifies the date from which it is to have
    effect; and
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                               | give the Authority a copy of the revised statement.                                                                                                                                                                                                           
|  
|6. | The licensee shall make the modification to the use of system charging methodology
    unless, within 28 days of receiving the licensees report under paragraph
    4, the Authority, having particular regard to the relevant objectives, has
    either:                                                                                      
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                               | directed the licensee not to make the modification; or                                                                                                                                                                                                        
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                               | notified the licensee that it intends to consult and then within three months
    of giving that notification has directed the licensee not to make the modification.                                                                                         
|  
|7. | The licensee shall give or send a copy of any statement under paragraph 1(a)
    or report under paragraph 4 to any person who requests it.                                                                                                                                                                                                      
|  
|8. | The licensee may make a charge for any statement or report given or sent
    pursuant to paragraph 7 of an amount which does not exceed the amount specified
    in directions issued by the Authority for the purposes of this condition
    based on the Authoritys estimate of the licensees reasonable
    costs of providing the document.
|  
|9. | Subject to paragraph 10, an approval by the Authority pursuant to paragraph
    1(a) may be granted subject to such conditions as the Authority considers
    appropriate, having regard, in
particular, to:                                                                                                                                     
|  

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|    | (a)                                                                                                                                                                           | the need for any further action to be undertaken by the licensee to ensure
    that the use of system charging methodology would facilitate the achievement
    of the relevant objectives;
and                                                                                                      
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    | (b)                                                                                                                                                                           | the time by which such action must be completed.                                                                                                                                                                                                                                                     
|   
|10. | An approval granted under paragraph 9 will only be effective if the Authority
    has informed the licensee of its intention to impose such conditions in a
    notice which:
|   
|    | (a)                                                                                                                                                                           | sets out the nature and contents of the conditions; and                                                                                                                                                                                                                                              
|   
|    | (b)                                                                                                                                                                           | specifies the period (not being less than 28 days from the date of the notice)
    within which representations with respect to the conditions may be made,                                                                                                                                          
|   
|    | and has considered any representations or objections which have been duly made
by the licensee and have not been withdrawn.                                                  
|   
|11. | The provisions of this condition are wholly without prejudice to:                                                                                                            
|   
|    | (a)                                                                                                                                                                           | the application of any charge restriction conditions (within the meaning given in paragraph 3 of special condition A	(Definitions
    and Interpretation) (England and Wales) or paragraph 2 of special condition
    B (Definitions) (Scotland) of distribution licences as at 1 April 2004);
    or
|   
|    | (b)                                                                                                                                                                           | the application of any charging arrangements condition (within the meaning
    of standard condition BA1 (Charging Arrangements) of the distribution licence
    as modified from time to
time).                                                                                                     
|   

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|12. | The Authority may (following consultation with the licensee and, where appropriate,
    with any other authorised electricity operator likely to be materially affected
    thereby) issue directions relieving the licensee of its obligations under
    paragraph 1 to such extent as may be specified in the directions.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   

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Condition 4A. Charges for Use of System

|1. | The licensee shall prepare a statement, in a form approved by the Authority,
    which sets out the basis on which charges will be made for use of system
    (the charging
statement), which:
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (a)                                                                                                                                                                                             
|  
|   | (b)                                                                                                                                                                                             
|  
|2. | The statement referred to at paragraph 1 shall include:                                                                                                                                         
|  
|   | (a)                                                                                                                                                                                             
|  
|   | (b)                                                                                                                                                                                             
|  
|   | (c)                                                                                                                                                                                             
|  
|   | (d)                                                                                                                                                                                             
|  

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|   | (e)                                                                                                                                                                                                                                                                                                                                                                                                                | information on electricity distribution use of system rebates (if any) given
    or announced to authorised electricity operators in the 12 months preceding
    the date of publication or
revision of the statement; and
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (f)                                                                                                                                                                                                                                                                                                                                                                                                                | up until 31 March 2005, the principles on which and the methods by which
    charges will be made for use of system.                                                                                                      
|  
|3. | Without prejudice to paragraph 6, before making any amendment to its use of system charges, the licensee shall give the Authority a revised charging statement which sets out the
amended charges and specifies	the date from which they are
to have effect                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                           
|4. | Without
      prejudice to paragraph 4 of standard condition 4 (Use of System Charging
      Methodology) and paragraph 6 of this condition, before any modification
      of the use of system charging methodology comes into effect, the licensee
      shall give the Authority a revised charging statement which sets out the
    amended charges and specifies the date from which they are to have effect.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                           
|5. | The
      licensee shall, not less than three months before the date on which it
      proposes to amend its use of system charges in respect of any agreement
    for use of system:                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                           
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                | send to
      the Authority a notice setting out those proposals, together with an explanation
      of them (including a statement of any assumptions on which the proposals
      are based);
and                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                           
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                | send a
      copy of such notice to any person who has entered into an agreement for
    use of system in accordance with the provisions of this licence.                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                           

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|6. | Except with the prior consent of the Authority, the licensee shall not amend
    its use of system charges in respect of any agreement for use of system unless:                                             
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (a)                                                                                                                                                                                                          
|   |                                                                                                                                                                                                              
|   | (b)                                                                                                                                                                                                          
|  
|7. | The licensee:                                                                                                                                                                                                
|  
|   | (a)                                                                                                                                                                                                          
|   |                                                                                                                                                                                                              
|   | (b)                                                                                                                                                                                                          
|  
|8. | The licensee shall give or send a copy of any statement (or the most recent
    revision thereof) prepared in accordance with paragraph 1 to any person who
    requests it.                                 
|  
|9. | The licensee may make a charge for any statement given or sent pursuant to
    paragraph 8 of an amount which does not exceed the amount specified in directions
    issued by the Authority for
the purposes
|  

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|    | of this condition based on the Authoritys estimate of the licensees
reasonable costs of providing the statement.                                                                                                                                                                                                                                                                        
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|10. | Unless the Authority determines otherwise, the licensee shall not enter into
    any use of system arrangement which does not ensure that its use of system
    charges will comply with the charging statement (or, where applicable, with
    the revision of that statement which is most recent at that time) at each
    time at which charges fall to be made under the arrangement.
|   
|11. | Nothing in this condition affects the ability of the licensee to charge for
    use of system in accordance with the charging statement (or the most recent
    revision thereof) issued in
accordance with paragraph 1.                                                                                                                                                                  
|   
|12. | The Authority may (following consultation with the licensee and, where appropriate, with any other authorised electricity operator likely	 to
    be materially affected thereby) issue directions relieving the licensee of
    its obligations under paragraph 1 to such extent as may be specified in the
    directions.                                                              
|   

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|Condition 4B. Connection Charging Methodology
|---------------------------------------------
|                                             
|1.                                           
|                                             
|                                             
|                                             
|                                             
|                                             
|2.                                           
|                                             
|                                             
|                                             
|                                             
|                                             
|3.                                           
|                                             
|                                             
|                                             
|                                             
|                                             

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|   | (c)                                                                                                             | that compliance with the connection charging methodology results in charges
    which reflect, as far as is reasonably practicable (taking account of implementation
    costs), the costs incurred by the licensee in its distribution business;
    and                                                                                                                                                                                                                      
|-- | --------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (d)                                                                                                             | that, so far as is consistent with sub-paragraphs (a), (b) and (c), the connection
    charging methodology, as far as is reasonably practicable, properly takes
    account of developments in
the licensees distribution business.                                                                                                                                                                                                                                          
|  
|4. | Subject to paragraph 6, the licensee shall prepare a statement, in a form
    approved by the Authority, which:
|  
|   | (a)                                                                                                             | sets out the basis on which charges will be made for the provision of connections
    to the licensees distribution system; and                                                                                                                                                                                                                                                                                                                                               
|  
|   | (b)                                                                                                             | is in such form and contains such detail as are necessary to enable any person
    to make a reasonable estimate of the charges to which he would become liable
    in respect of such
provision.                                                                                                                                                                                                                                                                              
|  
|5. | The statement referred to at paragraph 4 shall include:                                                        
|  
|   | (a)                                                                                                             | a schedule listing those items (including the carrying out of works and the
    provision and installation of electric lines or electrical plant) of significant
    cost liable to be required for the purpose of connection (at entry or exit
    points) to the licensees distribution system for which connection charges
    may be made or levied and including (where practicable) indicative charges
    for each such item and (in other cases) an explanation of the
|  

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| |     | principles on which and the methods by which such charges will be calculated;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) | the principles on which and the methods by which any charges will be made
    in respect of extension or reinforcement of the licensees distribution
    system rendered (in the
licensees discretion) necessary or appropriate by virtue of providing connection
to or use of system to any person seeking connection;                                                                                                                                                                                                                                                                                                                                                                                         
|
| | (c) | the principles on which and the methods by which connection charges will
    be made in circumstances where the electric lines or electrical plant to
    be installed are (at the
licensees discretion) of greater size or capacity than that required for
use of system by the person seeking connection;                                                                                                                                                                                                                                                                                                                                                                                                      
|
| | (d) | (save to the extent that such matters are included in any agreement offered
    in accordance with standard condition 36B  Requirement to Offer Terms
    for the Provision of Distributor Metering and Data Services), the principles
    on which and the methods by which any charges will be made for the provision
    of special metering or telemetry or data processing equipment by the licensee
    for the purposes of enabling any person who is party to the Balancing and
    Settlement Code and/or the Settlement Agreement for Scotland to comply with
    his obligations thereunder in respect of metering or the performance by the
    licensee of any service in relation to such metering;
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|   | (e)                                                                                                                                   | the
	    principles on which and the methods by which any charges will be made for
	    disconnection from the licensees distribution system and the removal
	    of electrical plant and electric lines following disconnection; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|-- | ------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | (f)                                                                                                                                   | the
	    principles on which and the methods by which any charges (including any
	    capitalised charge) will be made for maintenance, repair, and replacement
	    required of electric lines or electrical plant provided and installed for
    making a connection to the licensee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       s distribution system.
|   |                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|6. | With
      effect from 1 April 2005, the statement prepared by the licensee in accordance
      with paragraph 4 shall:              
|   |                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | (a)                                                                                                                                   | comply
      with the connection charging methodology; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | (b)                                                                                                                                   | be
      approved by the Authority, except in the case of the indicative
      charges included within the statement by virtue of paragraph 5(a), which
      will be in a form approved by the Authority.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|7. | Connection charges for those items referred to at paragraph 5 will be set
      at a level which will enable the licensee to recover:
|   |                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | (a)                                                                                                                                   | the
      appropriate proportion to be determined (having regard to the factors set
      out at paragraph 8) of the costs directly or indirectly incurred in carrying
      out any works, the extension or reinforcement of the licensees distribution
      system, or the provision and installation, maintenance,
      repair, and replacement, or (as the case may be) removal following disconnection,
      of any electric lines or electrical plant; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

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|   | (b)                                                                                                                                                                                                                                                                                                   | a
        reasonable rate of return on the capital represented by such costs.                                                                                                                                                                                                                                                                     
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                   
|8. | For
        the purpose of determining an appropriate proportion of the costs directly
        or indirectly incurred in carrying out works under an agreement for providing
        a connection, or a modification or retention of an existing connection,
      the licensee shall have regard to:
|   |                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                   
|   | (a)                                                                                                                                                                                                                                                                                                   | the
        benefit (if any) to be obtained or likely in the future to be obtained
        by the licensee or any other person as a result of the carrying out of
        such works by reason of extension of the licensees distribution
        system or the provision of additional entry or exit points on such system
        or otherwise;
|   |                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                   
|   | (b)                                                                                                                                                                                                                                                                                                   | the
        ability or likely future ability of the licensee to recoup a proportion
      of such costs from third parties; and                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                   
|   | (c)                                                                                                                                                                                                                                                                                                   | the
      principles (subject to paragraph 9) that:                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                       | (i)                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                       | (ii)                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                       | (iii)                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                   

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|    |                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                             | system
        based on a proportionate share of the costs of such reinforcement; and                                                                                                                                                                           
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                             |                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                     | (iv)                                                                                                                                                                                        | connection
        charges will not cover costs that are covered by use of system charges.                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                             |                                                                                                                                                                                                                                                                 
|9.  | Until
      31 March 2005, paragraph 8(c) applies to the licensee as if, for the provisions
      set out therein, there were substituted the provisions set out in paragraph
      5(c) of standard condition 4B of this licence in the form
      in which
      it was in force at 1 April 2004.
|    |                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                             |                                                                                                                                                                                                                                                                 
|10. | Except
        with the consent of the Authority, before making a modification of the
      connection charging methodology the licensee shall:                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                             |                                                                                                                                                                                                                                                                 
|    | (a)                                                                                                                                                                                                                                                                                                 | give
      the Authority a report which sets out:                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                             |                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                     | (i)                                                                                                                                                                                         | the terms
      proposed for the modification;                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                             |                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                     | (ii)                                                                                                                                                                                        | how the
      intended modification would better achieve the relevant objectives; and                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                             |                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                     | (iii)                                                                                                                                                                                       | a timetable
        for implementing the modification and the date with effect from which
        the modification (if made) is to take effect, being not earlier than
        the date on which the period referred to in paragraph 12 will expire;
        and
|    |                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                             |                                                                                                                                                                                                                                                                 
|    | (b)                                                                                                                                                                                                                                                                                                 | where
        the Authority has directed that sub-paragraph (a) should not apply, comply
        with such other requirements (if any) as the Authority may specify in
      its direction.
|    |                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                             |                                                                                                                                                                                                                                                                 
|11. | Subject
        to paragraph 12, where the licensee has complied with the requirements
      of paragraph 10, it shall, before making the modification:                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                             |                                                                                                                                                                                                                                                                 

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|    | (a)                                                                                                                                                                                                                                                                                                                                                                      | revise
      the statement (or the most recent revision thereof) issued under
      paragraph 4 so that the statement sets out the changed connection charging
      methodology and specifies the date from which it is to have effect; and
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                             
|    | (b)                                                                                                                                                                                                                                                                                                                                                                      | give
      the Authority a copy of the revised statement.                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                             
|12. | The
        licensee shall make the modification to the connection charging methodology
        unless, within 28 days of receiving the licensees report under
        paragraph 10, the Authority, having particular regard to the relevant
      objectives, has either:                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                             
|    | (a)                                                                                                                                                                                                                                                                                                                                                                      | directed
      the licensee not to make the modification; or                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                             
|    | (b)                                                                                                                                                                                                                                                                                                                                                                      | notified
        the licensee that it intends to consult and then within three months
        of that notification directed the licensee not to make the modification.                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                             
|13. | The
        licensee shall give or send a copy of any statement under paragraph 4
      or report under paragraph 10 to any person who requests it.                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                             
|14. | The
        licensee may make a charge for any statement or report given or sent
        pursuant to paragraph 13 of an amount which does not exceed the amount
        specified in directions issued by the Authority for the purposes of this
        condition based on the Authoritys estimate of the licensees
      reasonable costs of providing the document.
|    |                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                             
|15. | If
        so requested, and subject to paragraphs 17 and 18, the licensee shall,
        as soon as practicable and in any event within 28 days (or, where the
        Authority so approves, such longer period as the licensee may reasonably
      require having regard to the nature and complexity of                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                             

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|    | the
        request) after the date referred to in paragraph 16, give or send to
        any person making such request a statement showing present and future
        circuit capacity, forecast power flows and loading on the part or parts
        of the licensees distribution system specified in the request and
      fault levels for each distribution node covered by the request, and containing:
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                
|16. | For
        the purposes of paragraph 15, the date referred to is the later of:                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                
|17. | The
        licensee may within ten days after receipt of the request provide an
        estimate of its reasonable costs in the preparation of any statement
        referred to in paragraph 15, and its obligation to provide such statement
      will be conditional on the requesting person agreeing to                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                

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|    | pay
      the amount estimated or such other amount as the Authority may, on the application
      of the licensee or the person requesting such statement, direct.                                                        
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                            
|18. | The
      licensee shall include in every statement given or sent under paragraph
      15 the information required by that paragraph, except that the licensee
      may:                                                 
|    |                                                                                                                                                                                                                            
|    | (a)                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                            
|    | (b)                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                            
|19. | Subject
      to paragraph 20, approvals by the Authority pursuant to paragraphs 1(a)
      and 6 may be granted subject to such conditions as the Authority considers
      appropriate, having regard, in particular, to:
|    |                                                                                                                                                                                                                            
|    | (a)                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                            
|    | (b)                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                            

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|20. | An
      approval granted under paragraph 19 will only be effective if the Authority
      has informed the licensee of its intention to impose such conditions in
      a notice which:                                                                                                                                                                                                                                                       
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|    | and
      has considered any representations or objections which have been duly made
      by the licensee and have not been withdrawn.                                                                                                                                                                                                                                                                                                        
|   
|21. | Unless
      the Authority determines otherwise, the licensee shall not enter into an
      arrangement for providing a connection or a modification or retention of
      an existing connection unless the arrangement ensures that the connection
      charges in respect of that arrangement will comply with the statement referred
      to in paragraph 4 at the time at which the licensee offers to enter into
      the arrangement.
|   
|22. | Nothing
      in this condition affects the ability of the licensee to charge for the
      provisions of connections in accordance with the statement issued pursuant
      to paragraph 4.                                                                                                                                                                                                                                                   
|   
|23. | The
      provisions of this condition are wholly without prejudice to:                                                                                                                                                                                                                                                                                                                                                                        
|   
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   

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|    | (b)                                                                                                                                                                                                                                                                                                                                     | the application
      of any charging arrangements condition (within the meaning of standard condition
      BA1 (Charging Arrangements) of the distribution licence as modified from
      time to time).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|24. | The
      Authority may (following consultation with the licensee and, where appropriate,
      with any other authorised electricity operator likely to be materially affected
      thereby) issue directions relieving the licensee of its obligations under
      paragraph 1 to such extent as may be specified in the directions.
|   

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|Condition
            4C. Non-Discrimination in the Provision of Use of System and Connection
      to the System
|-----------------------------------------------------------------------------------------------------------------
|                                                                                                                 
|1.                                                                                                               
|                                                                                                                 
|2.                                                                                                               
|                                                                                                                 
|3.                                                                                                               
|                                                                                                                 
|4.                                                                                                               
|                                                                                                                 

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|Condition
      4D. Requirement to Offer Terms for Use of System and Connection
|-------------------------------------------------------------------------------
|                                                                               
|1.                                                                             
|                                                                               
|                                                                               
|                                                                               
|                                                                               
|                                                                               
|2.                                                                             
|                                                                               
|3.                                                                             
|                                                                               
|                                                                               
|                                                                               

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| |     | transmission
      or distribution of electricity, and for the obtaining of any consents necessary
      for such purpose;                                                                                                                                                                                                                                                                                                                                                                                             
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) | the carrying
      out of the works (if any) in connection with the extension or reinforcement
      of the licensees distribution system rendered (in the licensees
      discretion) appropriate or necessary by reason of making the connection
      or the modification of an existing connection, and for the obtaining of
      any consents necessary for such purpose;                                                                                                                                      
|
| | (c) | (save to
      the extent that such matters are included in any agreement offered in accordance
      with standard condition 36B  Requirement to Offer Terms for the Provision
      of Distributor Metering and Data Services), the installation of appropriate
      meters (if any) required to enable the licensee to measure electricity being
      accepted into the licensees distribution system at the specified entry
      point or points or leaving such system at the specified exit point or points;
|
| | (d) | the installation
      of such switchgear or other apparatus (if any) as may be required for the
      interruption of supply where the person seeking connection or the modification
      of an existing connection does not require the provision of top-up or standby;
      and                                                                                                                                                                                                                                   
|
| | (e) | (save to
      the extent that such matters are included in any agreement offered in accordance
      with standard condition 36B  Requirement to Offer Terms for the Provision
      of Distributor Metering and Data Services), the installation of special
      metering, telemetry, or data processing equipment (if any) for                                                                                                                                                                                    
|

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|   |                                                                                                                                                                                                              | the
      purpose of enabling any party to the Balancing and Settlement Code and/or
      the Settlement Agreement for Scotland to comply with its obligations thereunder
      in respect of metering or the performance by the licensee of any service
      in relation to such metering.                                                                                                                     
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|4. | In
      making an offer pursuant to this condition to enter into any connection
      agreement, or in replying to a request for connection under section 16A
      of the Act, the licensee shall set out:
|  
|   | (a)                                                                                                                                                                                                          | the
      date by which, in the case of an agreement under paragraph 2, any works
      required to permit access to the licensees distribution system (including
      for this purpose any works to reinforce or extend the licensees distribution
      system) shall be completed, time being of the essence unless, in the case
      of connection agreements only, otherwise agreed between the parties;
|  
|   | (b)                                                                                                                                                                                                          | the
      charges to be paid in respect of the services required, which are (unless
      manifestly inappropriate):                                                                                                                                                                                                                                                                                             
|  
|   |                                                                                                                                                                                                              | (i)                                                                                                                                                                                                                                                                                                                                                                                                              
|  
|   |                                                                                                                                                                                                              | (ii)                                                                                                                                                                                                                                                                                                                                                                                                             
|  

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|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | such
      other detailed terms in respect of each of the services required as are
      or may be appropriate for the purpose of the agreement.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------
|  
|5. | The
      licensee shall offer terms for agreements in accordance with paragraphs
      1, 2, and 4 as soon as is practicable and (save where the Authority consents
      to a longer period) in any event not more than the period specified in paragraph
      6 after receipt by the licensee (or its agent) from any person of an application
      containing all such information as the licensee may reasonably require for
      the purpose of formulating the terms of the offer.
|  
|6. | For
      the purposes of paragraph 5, the period specified is:                                                                                                                                                                                                                                                                                                                                                                                                                             
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | in
      the case of persons seeking the provision of use of system only, 28 days;                                                              
|  

| | (b) | in
      the case of persons seeking connection or the modification of an existing
      connection, three months; and                              
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                     
| | (c) | in
      the case of persons seeking use of system in conjunction with connection
      or the modification of an existing connection, three months.
|

|7. | The
      licensee is not obliged pursuant to this condition to offer to enter or
      to enter into any agreement under paragraphs 1, 2, and 4:
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (a)                                                                                                                                              
|  
|   |                                                                                                                                                  
|  
|   |                                                                                                                                                  
|  

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                             | standards
      applicable in respect of the distribution business,      
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                       | in
      breach of the Grid Codes or the licensees Distribution Code, or
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | (iv)                                                                                                                                                                                                                                                                                                                                                                                                                                        | in
      breach of the conditions; or                                    
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | if
      the person making the application does not undertake to be bound, insofar
      as applicable, by the terms of the licensees Distribution Code or
      the applicable Grid Code from time to time in force; or                                                                                                                                                                                                                  
|  
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | if
      to do so would be likely to involve the licensee doing something which,
      without the consent of another person, would require the exercise of a power
      conferred by any provision of Schedules 3 or 4 to the Act, and the licence
      does not provide for that provision to have effect in relation to the licensee,
      and any necessary consent has not, at the time that the request is made,
      been given.
|  
|8. | The
      licensee shall, within 28 days following receipt of a request from any person,
      give or send to him such information in the possession of the licensee as
      may be reasonably required by such person for the purpose of completing
      an application under the Application Regulations or any such provisions
      to like effect contained in any further regulations then in force made pursuant
      to sections 6(3), 60, and 64(1) of the Act.

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Condition
  4E. Functions of the Authority

|1. | If,
      after a period which appears to the Authority to be reasonable for the purpose,
      the licensee has failed to enter into an agreement with any person entitled
      or claiming to be entitled thereto pursuant to a request under standard
      condition 4D (Requirement to Offer Terms for Use of System and Connection),
      the Authority may, on the application of such person or the licensee, settle
      any terms of the agreement in dispute between the licensee and that person
      in such manner as appears to the Authority to be reasonable, having (insofar
      as is relevant) regard in particular to the following considerations:
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  

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|   | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | that
        the terms and conditions of the agreement so settled by the Authority
        and of any other agreements entered into by the licensee pursuant to
        a request under standard condition
4D(Requirement to
Offer Terms for Use of System and Connection) should be in as similar a form
as is practicable.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                             
|2. | Insofar
        as any person entitled or claiming to be entitled to an offer under standard
        condition 4D (Requirement to Offer Terms for Use of System and Connection)
        wishes to proceed on the basis of an agreement as settled by the Authority
        pursuant to paragraph 1, the licensee shall forthwith enter into and
    implement such agreement in accordance with its terms.                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                             
|3. | If either
        party to such agreement proposes to vary the contractual terms of any
        agreement for use of system, or for the provision of a connection or
        the modification of an existing
connection to the licensees distribution system, entered into pursuant
to standard condition 4D (Requirement to Offer Terms for Use of System and Connection)
or under this condition, in any manner provided for under such agreement, the
Authority may, at the request of that party, settle any dispute relating to such
variation in such manner as appears to the Authority to be reasonable.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                             
|4. | If the
        licensee and an authorised electricity operator or other person who is
    party to a relevant agreement are in dispute as to whether:                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                             
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | use of system charges
        made, or to be made, comply with the statement of use of system charges
        under paragraph 1 of standard condition 4A (Charges for Use of System)
        which applied or applies in relation to the period in respect of which
    the dispute arises; or                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                             

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| | (b)                                                                                                                                                                                                                                                                                                                                                            | use of system charges made, or to be made, comply with the statement of the
    use of system charging methodology under paragraph 1(a) of standard
    condition 4 (Use of System Charging Methodology) which applied or applies
    in
relation to the period inrespect of which
the dispute arises; or
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                          
| | (c)                                                                                                                                                                                                                                                                                                                                                            | connection charges
made, or to be made, comply with the statement
of
the connection charging methodology underparagraph 4
of standard condition 4B (Connection Charging Methodology) which applied or applies
in relation to the period in
respect of which
the dispute arises,                          
| |                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                          
| | such
        dispute
may be referred to the Authority for it to determine whether,
in the case of sub-paragraph (a), the charges made, or to be made, complied with
the relevant statement under standard condition 4A (Charges for Use of System),
or whether, in the case of sub-paragraphs (b) and (c), the charges complied with
the relevant methodology.

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NOTICE UNDER SECTION 11A(3) OF THE ELECTRICITY ACT 1989

The Gas and Electricity Markets Authority (the Authority) hereby
  gives notice pursuant to Section 11A(3) of the Electricity Act 1989 (the
  Act)
as follows:

|1. | The Authority proposes
	    to modify the standard licence conditions contained in the licences of each
	    electricity distributor treated as granted under Section 6(1)(c) of the
	    Act by amending standard licence condition 5 so that paragraphs 2 and 3
	    of that condition are suspended during such period as standard licence condition
    49 has effect in relation to the licensee.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | The reason why the Authority proposes to make these licence modifications
    and their effect were published by the Authority in a document entitled Information
    and incentives project:
Incentive schemes  Final Proposals (December 2001).                                                                                                                                                  
|  
|3. | In summary, the effect is to suspend the obligation to provide an annual
    report on quality of performance of the licensees distribution system
    while the licensee is subject to a similar obligation under standard licence
    condition 49.                                                                                                                                                
|  
|4. | Copies of the proposed
	    licence and the document referred to in paragraph 2 are available (free
	    of charge) from the Ofgem Library, 9 Millbank, London, SWIP 3GE (020 79017003)
    or on the Ofgem website (www.ofgem.gov.uk)                                                                                                                                                                
|  
|5. | Any representations or objections to the proposed licence modification may be made on or before 2 April to Chris Watts, Senior Manager, Quality of Supply and Reporting, Ofgem, 9 Millbank,
London, SW1P 3GE. Or by email to chris.watts@ofgem.gov.uk                                                                                                                                                 
|  



|Richard Ramsay                             |                 
|------------------------------------------ | ----------------
|Managing Director                          |                 
|Regulation and Financial Affairs           |                 
|Duly authorised on
behalf of the Authority | 1
    March 2002

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Condition 5. Distribution System Planning Standard and Quality of Service

|1. | The licensee shall plan and develop the licensees distribution system
    in accordance with a standard not less than that set out in Engineering Recommendation
    P.2/5 (October 1978 revision)
of the Electricity Council Chief Engineers Conference in so far as applicable
to it or such other standard of planning as the licensee may, following consultation
(where appropriate) with the transmission company and any other authorised electricity
operator liable to be materially affected thereby and with the approval of the
Authority, adopt from time to time.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | The licensee shall within 3 months after this condition comes into force
    draw up and submit to the Authority for its approval a statement setting
    out criteria by which the quality of performance of the licensee in maintaining
    the licensees distribution systems security and availability
    and quality of service may be measured.                                                                                                                                                                                                                         
|  
|3. | The licensee shall within 2 months after the end of each financial year submit
    to the Authority a report providing details of the performance of the licensee
    during the previous financial year against the criteria referred to in paragraphs
    1 and 2.                                                                                                                                                                                                                                                                                                             
|  
|4. | The Authority may (following consultation with the licensee and, where appropriate,
    with the transmission company and any other authorised electricity operator
    liable to be materially affected thereby) issue directions relieving the
    licensee of its obligation under paragraph 1 in respect of such parts of
    the licensees distribution system and to such extent as may be specified
    in the directions.                                                                                                                                               



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    Distribution    |    |                   
|------------------------------- | -- | ------------------
|Standard
    Licence Conditions | 46 | September
    2001

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Condition 6. Safety and Security of Supplies Enquiry Service

|1. | The licensee shall establish, or procure the establishment of, and subsequently
    operate and maintain, or procure the subsequent operation and maintenance
    of, an enquiry service for use by any person for the purposes of receiving
    reports and offering information, guidance or advice about any matter or
    incident which:
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                          
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                          
|  
|2. | The service
    established, operated and maintained in accordance with paragraph 1 shall:                                                                                                                                                                                                                                                   
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                          
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                          
|  
|   | (c)                                                                                                                                                                                                                                                                                                                                          
|  
|3. | In the establishment and operation and maintenance of the enquiry service
    in accordance with paragraph 1 the licensee shall not discriminate between
    any persons or class or classes of
persons.                                                                                                                                     
|  
|4. | In the establishment,
	    operation and maintenance of the enquiry service in accordance with paragraph
	    1 the licensee shall not restrict, distort or prevent competition in the
	    supply of
electricity.                                                                                                                           
|  
|5. | The licensee shall have in force at all times a statement approved by the
    Authority setting out details of the service to be provided in accordance
    with paragraph 1, and the licensee shall give or send a copy of such statement
    to any person requesting it.                                                                  



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          Distribution    |    |                       
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|Standard
          Licence Conditions | 47 | September
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|6. | The licensee shall give to the Authority notice of any amendments it proposes to make to the statement prepared under paragraph 5, and shall not make such amendments until either:                                                                                                                                          
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                              
|   | (a)                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                              
|   | (b)                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                              
|7. | The licensee shall take steps to inform each authorised electricity operator which uses the service of any change to the address or telephone number of such service established, operated and
maintained in accordance with paragraph 1, as soon as is practicable but in any event prior to such change becoming effective.
|   |                                                                                                                                                                                                                                                                                                                              



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|--------------------------- | -- | --------------
|Standard Licence Conditions | 48 | September 2001

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Condition 7. Provision of Information about Theft or Abstraction of Electricity,

Damage and Meter Interference

|1. | Where a person other than the licensee is the owner of any electrical plant, electric lines or meter the licensee shall, as soon as is reasonably practicable, inform that person of any incident
where the licensee has reason to believe:          
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (a)                                                                                                                                                                                                                                                  
|  
|   | (b)                                                                                                                                                                                                                                                  
|  
|   | provided that the licensee shall not be obliged to inform the owner of any electrical plant, electrical line or meter of any such incident where it has reason to believe that the damage or
interference referred to above was caused by such owner.
|  
|2. | Where the licensee, in the course of providing services to any person supplying electricity to premises directly connected to the licensees distribution system, has reason to believe
that:                                                        
|  
|   | (a)                                                                                                                                                                                                                                                  
|  
|   | (b)                                                                                                                                                                                                                                                  
|  
|   | the licensee shall, as soon as reasonably practicable, inform that person (the person supplying electricity to the premises in question) of the incident in question.                                                                                



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|--------------------------- | -- | --------------
|Standard
Licence Conditions | 49 | September 2001

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Condition 8. Provisions Relating to the Connection of Metering Equipment

|1. | On application made by any person the licensee shall, subject to paragraph 5, offer to enter into an agreement authorising that person to connect metering equipment to the licensees
distribution system.                                                                                                                                                                                      
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | In making an offer to enter into an agreement specified in paragraph 1, the licensee shall set out:                                                                                                                                                                                                                                                                                              
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                              
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                              
|  
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                              
|  
|3. | The licensee shall offer terms for an agreement in accordance with paragraph 1 as soon as practicable and (save where the Authority consents to a longer period) in any event not more than 28
days after receipt by the licensee from any person of an application containing all such information as the licensee may reasonably require for the purpose of formulating the terms of the offer.
|  
|4. | In the offering of the terms in accordance with paragraph 1, the licensee shall not show undue preference to or exercise undue discrimination against any person or class or classes of persons
and shall not offer terms or operate in such a way as to restrict, distort or prevent competition.                                                                                               
|  
|5. | The licensee shall
not be obliged pursuant to this condition to offer to enter or to enter into
any agreement where to do so would be likely to cause the licensee to be in breach
of those
provisions referred to at paragraph 7(a) of standard condition 4B
(Requirement to Offer Terms for Use of System and Connection).                                                                     
|  



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Licence Conditions | 50 | September 2001

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|6. | If, after a period which appears to the Authority to be reasonable for the purpose, the licensee has failed to enter into an agreement with any person entitled or claiming to be entitled thereto
pursuant to a request under this condition, the Authority may, on the application of such person or the licensee, settle any terms of the agreement in dispute between the licensee and that person in such manner as appears to the Authority to be
reasonable.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|7. | If the licensee or other party to such agreement proposes to vary the terms of any agreement entered into pursuant to this condition in any manner provided for under such agreement, the
Authority may, at the request of the licensee or other party to such agreement, settle any dispute relating to such variation in such manner as appears to the Authority to be reasonable.                                                                               
|  
|8. | In so far as any person entitled or claiming to be entitled to an offer under this condition wishes to proceed on the basis of an agreement or a variation to it as settled by the Authority
pursuant to paragraphs 6 and 7, the licensee shall forthwith enter into and implement such agreement or variation in accordance with its terms.                                                                                                                       
|  



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Distribution    |    |               
|--------------------------- | -- | --------------
|Standard
Licence Conditions | 51 | September 2001

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Condition
9. Distribution Code

|1. | The licensee shall in consultation with authorised electricity operators liable to be materially affected thereby prepare and at all times have in force and shall implement and (subject to
paragraph 10 of this condition) comply with a Distribution Code:                                                                                                                                                                                  
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                
|  
|2. | The Distribution Code in force at the date this condition comes into force shall be sent to the Authority for its approval. Thereafter the licensee shall (in consultation with authorised
electricity operators liable to be materially affected thereby) periodically review (including upon the request of the Authority) the Distribution Code and its implementation. Following any such review, the licensee shall send to the
Authority:
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  



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Licence Conditions | 52 | September 2001

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|3. | Revisions
        to the Distribution Code proposed by the licensee and sent to the Authority
        pursuant to paragraph 2 must receive the prior approval of the Authority
        before being
implemented.                                                                                                                                                                                                                                       
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|4. | Having
        regard to any written representations or objections referred to in sub-paragraph
        2(c), and following such further consultation (if any) as the Authority
        may consider appropriate, the Authority may issue directions requiring
        the licensee to revise the Distribution Code in such manner as may be
        specified in the directions, and the licensee shall forthwith comply
    with any such directions.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|5. | The Distribution
    Code shall include:                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|6. | The licensee
        shall give or send a copy of the Distribution Code (as from time to time
    revised) to the Authority.                                                                                                                                                                                                                                                                                                                           



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          Distribution    |    |                       
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          Licence Conditions | 53 | September
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|7.  | The licensee
        shall (subject to paragraph 8) give or send a copy of the Distribution
    Code (as from time to time revised) to any person requesting the same.                                                                                                                                                    
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                           
|8.  | The licensee
        may make a charge for any copy of the Distribution Code (as from time
        to time revised) given or sent pursuant to paragraph 7 of an amount which
        will not exceed any amount specified for the time being for the purposes
    of this condition in directions issued by the Authority.
|    |                                                                                                                                                                                                                                                                                                                           
|9.  | In preparing,
        implementing and complying with the Distribution Code (including in respect
        of the scheduling of maintenance of the licensees distribution
        system), the licensee shall not unduly discriminate between or unduly
    prefer any person or class or classes of persons.             
|    |                                                                                                                                                                                                                                                                                                                           
|10. | The Authority
        may (following consultation with the licensee) issue directions relieving
        the licensee of its obligations under the Distribution Code in respect
        of such parts of the
licensees distribution system and to such extent as may be specified in
the directions.                      



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          Distribution    |    |                       
|------------------------------------- | -- | ----------------------
|Standard
          Licence Conditions | 54 | September
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Condition 9A. Compliance with other Distribution Codes

|1. | The licensee shall comply with the provisions
        of the other Distribution Codes insofar as applicable to the licensee
    or the licensees distribution business.                                                                                                                                                                                                                                                                                        
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|2. | The Authority may, following consultation
        with the licensed distributor(s) responsible for any other Distribution
        Code(s) and any authorised electricity operators directly affected thereby,
        issue directions relieving the licensee of its obligation in paragraph
        1 in respect of such parts of the other Distribution Code(s) and to such
    extent and subject to such conditions as may be specified in those directions.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

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          Distribution    |    |               
|------------------------------------- | -- | --------------
|Standard
          Licence Conditions | 55 | September 2001

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Condition 10. Balancing and Settlement Code and NETA Implementation

|1. | Insofar as the licensee shall distribute
        or offer to distribute electricity within any area of England and Wales,
        the licensee shall be a party to the BSC Framework Agreement and shall
        comply
with the BSC.                                                                                                                                                                                          
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                
|2. | The licensee shall comply with the programme
        implementation scheme established in accordance with paragraph 3 as modified
    from time to time in accordance with paragraph 5.                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                
|3. | The programme implementation scheme is
        a scheme designated by the Secretary of State setting out the steps,
        including without limitation steps as to the matters referred to in paragraph
        4, to be taken (or procured) by the licensee (and/or by authorised electricity
        operators) which are, in the Secretary of State's opinion, appropriate
    in order to give full and timely effect to:
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                
|4. | The programme implementation scheme may
        include provisions,inter
    alia,                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                            



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          Licence Conditions | 56 | September 2001

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|   | (d)                                                                                                                                                                                                                                                                                                                                                                                 | for securing the co-ordinated and effective
        commencement of implementation of and operations under the BSC, including
        the testing, trialling and start-up of the systems, processes and procedures
        employed in such implementation and employed by authorised electricity

    operators and others in connection with such operations;                                                                                                       
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (e)                                                                                                                                                                                                                                                                                                                                                                                 | for co-ordinating the administration
        and implementation of the BSC and the administration of the Pooling and
    Settlement Agreement;                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (f)                                                                                                                                                                                                                                                                                                                                                                                 | for the licensee to refer to the Authority
        for determination, whether of its own motion or as provided in the programme
        implementation scheme, disputes, as to matters covered by the scheme,
        between persons who are required (by conditions of their licences or
        exemptions) or who have agreed to comply with the scheme or any part
    of it; and                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (g)                                                                                                                                                                                                                                                                                                                                                                                 | for the Authority, in the circumstances
        set out in the scheme, to require that consideration be given to the
        making of a proposal to modify the BSC and, if so, to require the making
        of such proposal in the manner set out in the scheme, such power to be
        exercisable at any time within the period of 12 months after the start
        of the first period for trading under the BSC as determined by the Secretary
    of State.
|   |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|5. | (a)                                                                                                                                                                                                                                                                                                                                                                                 | The Secretary of State may at any time
        direct, in accordance with the provisions of the programme implementation
        scheme, that the programme implementation scheme be modified in the manner
        set out in such direction, in order to give (or continue to give) full
        and timely effect to the
matters described in paragraph 3.                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                 | The Secretary of State shall serve a
        copy of any such direction on the licensee, and thereupon the licensee
    shall comply with the scheme as modified by the direction.                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|6. | If there is any conflict between the
        requirements contained in the programme implementation scheme pursuant
        to paragraph 4(a) and/or imposed on the licensee by paragraphs 2 and
        5 of this condition, and those imposed on the licensee by any other condition,
        the provisions of paragraph(s) 4(a), 2 and/or 5 (as appropriate) shall
    prevail.



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          Distribution    |    |               
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          Licence Conditions | 57 | September 2001

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|7. | Without prejudice to paragraph 2, the licensee shall use all reasonable endeavours
    to do such things as may be requisite and necessary in order to give full
    and timely effect to the modifications made to this licence as determined
    by the Secretary of State pursuant to the power vested in him under section
    15A of the Act (and to give full and timely effect to the matters envisaged
    by such modifications).
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|8. | In this condition:                                                                                                                                                                                                                                                                                                                                                                                                                        
|  

| |  | BSC                           | means the balancing and settlement code required to be in place, pursuant
      to the transmission licence granted to the transmission company in England
      and Wales, as from time to time modified.                                                          
| |  | ------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                 |                                                                                                                                                                                                                                                                     
| |  | BSC
      Framework Agreement | means the agreement of that title, in the form approved by the Secretary
      of State, by which the BSC is made contractually binding between the parties
      to that agreement, as from time to time amended, with the consent of the
      Secretary of State.
| |  |                                 |                                                                                                                                                                                                                                                                     
| |  | core
      industry documents | mean those documents which:                                                                                                                                                                                                                                         
| |  |                                 |                                                                                                                                                                                                                                                                     
| |  |                                 | (a)                                                                                                                                                                                                                                                                 
| |  |                                 |                                                                                                                                                                                                                                                                     
| |  |                                 | (b)                                                                                                                                                                                                                                                                 
| |  |                                 |                                                                                                                                                                                                                                                                     

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      Distribution    |    |               
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      Licence Conditions | 58 | September 2001

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Condition 11. Change Co-ordination for NETA

|1. | Insofar as the licensee
	    shall distribute or offer to distribute electricity within any area of England
	    and Wales, the licensee shall take all reasonable measures to secure and
	    implement (consistently with the procedures applicable under or in relation
	    to the core industry documents to which it is party (or in relation to which
	    it holds rights in respect of amendment) as modified or replaced from time
	    to time), and shall not take any steps to prevent or unduly delay, changes
	    to those documents , such changes being changes which are appropriate in
	    order to give full and timely effect to and/or in consequence of any modification
    which has been made to the BSC.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | For the purposes of
	    paragraph 1, core industry documents has the meaning given in paragraph
	    8 of standard condition 10 (Balancing and Settlement Code and NETAImplementation).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             



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Distribution          |    |               
|--------------------------------- | -- | --------------
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      Licence Conditions | 59 | September 2001

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Condition 12. Settlement Agreement for Scotland

|1. | In so far as the licensee
	    shall distribute or offer to distribute electricity within any area of Scotland
	    or to the extent that the Settlement Agreement for Scotland may apply in
	    respect of the activities of the distribution business, the licensee shall
    comply with the relevant provisions of the Settlement Agreement for Scotland.                                                                                                                                                                                                                                         
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | In this condition:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|  
|   | Settlement Agreement for Scotland means the agreement of that
      title, as nominated by the Authority for the purposes of this condition,
      to be prepared in accordance with and comprise such matters as are set
      out in special condition I (The Settlement Agreement for Scotland) of each
      of the electricity distribution licences of SPDistribution
      Limited, and Scottish Hydro-Electric Power Distribution Limited (and any
      other name by which any of these companies come to be known), as from time
      to time revised with the approval of the Authority.



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      Distribution    |    |               
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      Licence Conditions | 60 | September 2001

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Condition 12A. Compliance with the Trading Code in Scotlan

|1. | (a) | Insofar as the licensee
      shall distribute or offer to distribute electricity within any area of Scotland,
      the licensee shall comply with the provisions of the Trading Code during
      any period that the licensee is a member of the trading system established
      by the Trading Code, including any requirements thereunder for the Authoritys
      approval or consent, for compliance with directions issued by the Authority
      or relating to determinations made by the Authority.
|-- | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (b) | The Authority may (following
	    consultation with such other members of such trading system as the Authority
	    shall consider appropriate) issue directions relieving the licensee of its
	    obligation under sub-paragraph (a) in respect of such parts of the Trading
    Code and to such extent as may be specified in those directions.                                                                                                                                                             
|  

|2. | In
      this condition: |                        |                                                                                                                                                                                                                                                                                              
|-- | ------------------------ | ---------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   |                          | Trading
        Code | means
        the trading code required to be adopted pursuant tostandard
        condition D2 (Trading Code for Scotland) of the standard conditions of
        transmission licences and approved by the Authority as from time to time
        revised with the approval of the Authority.



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Distribution          |    |               
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      Licence Conditions | 61 | September 2001

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Condition 13. Change Co-ordination for the Utilities Act 2000

|1. | The licensee
	    shall take all reasonable measures to secure and implement, and shall not
	    take any steps to prevent or unduly delay, such changes to the industry
	    framework documents as are necessary or expedient to give full and timely
    effect to the provisions of the Utilities Act 2000.                                       
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | In complying
	    with paragraph 1, the licensee shall act in the case of each industry framework
	    document consistently with the change procedures currently applicable to
	    that document, except where to do so would be inconsistent with any provision
    of the Utilities Act 2000, in which event that provision shall take precedence.
|  
|3. | For the purposes
	    of this condition, industry framework document means, subject
	    to paragraph 4, any of the following documents to which the licensee is
	    a party, or in relation to which it holds rights in respect of amendment
	    or termination, together with any documents which are supplemental or ancillary
    thereto:    
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                   
|   | (b)                                                                                                                                                                                                                                                                                                                                                   
|   | (c)                                                                                                                                                                                                                                                                                                                                                   
|   | (d)                                                                                                                                                                                                                                                                                                                                                   
|   | (e)                                                                                                                                                                                                                                                                                                                                                   
|   | (f)                                                                                                                                                                                                                                                                                                                                                   
|   | (g)                                                                                                                                                                                                                                                                                                                                                   
|   | (h)                                                                                                                                                                                                                                                                                                                                                   
|   | (i)                                                                                                                                                                                                                                                                                                                                                   
|   | (j)                                                                                                                                                                                                                                                                                                                                                   
|   | (k)                                                                                                                                                                                                                                                                                                                                                   
|   | (l)                                                                                                                                                                                                                                                                                                                                                   



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      Distribution |    |               
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Licence Conditions    | 62 | September 2001

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|   | (m)                                                                                                                                                                                                                                                                                                                                                      | any agreement for the provision of distribution use of system, meter provision services, meter maintenance services, data retrieval services, data processing services, data aggregation services,
or prepayment meter services.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|4. | Where the Authority considers that the list of industry framework documents set out in paragraph 3 should be modified for the purposes of this condition generally, the licensee shall discuss any
proposed modification (including addition) to the list in good faith and use all reasonable endeavours to agree such modification with the Authority.
|  
|5. | This condition shall cease to have effect on 30 June 2002 or such earlier date as the Authority may specify in a direction given for the purposes of this condition generally.                                                                                                                                                                          
|  



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Distribution    |    |               
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Licence Conditions | 63 | September 2001

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AMENDMENTS TO STANDARD
CONDITION 14 BY THE ALTERATION OF THE TITLE AND THE ADDITION OF NEW PARAGRAPHS
2 AND 3

Condition 14. Provision of the Metering Point Administration Service and
Compliance with the
Master Registration Agreement

|1. | The licensee shall be a party to and shall comply with the provisions of the Master Registration Agreement.                                                                                                                        
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | The licensee shall establish, or procure the establishment of, and subsequently operate and maintain, or procure the subsequent operation and maintenance of, a service to be known as the
Metering Point Administration Service.
|  
|3. | The Metering Point Administration Service shall fulfil the following functions:                                                                                                                                                    
|  
|   | (a)                                                                                                                                                                                                                                
|  
|   |                                                                                                                                                                                                                                    
|  

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| |     | (ii)                                                                                                                                                              | the type of metering equipment installed at each such premises; and                                                                                                                                                                                                             
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |     | (iii)                                                                                                                                                             | a unique and accurate address of each such premises so far as is reasonably practicable having regard to the nature and source of the information provided to the licensee;                                                                                                     
|
| | (b) | the amendment
        of the register maintained in accordance with sub- paragraph (a) to reflect
    changes of electricity supplier in respect of any premises;
|
| | (c) | the provision,
        in a timely and efficient manner, of such data contained in the register
    as is reasonably required and requested to:                  
|
| |     | (i)                                                                                                                                                               | any electricity supplier or agent thereof;                                                                                                                                                                                                                                      
|
| |     | (ii)                                                                                                                                                              | any person identified in the Balancing and Settlement Code (where the premises are within England and Wales) and/or the Settlement Agreement for Scotland (where the premises are within Scotland)
as an appropriate person for the receipt of data for settlement purposes; and
|
| |     | (iii)                                                                                                                                                             | any person identified in the Master Registration Agreement as entitled to such data for the purpose of facilitating changes of electricity supplier in respect of any premises; and                                                                                             
|

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| | (d) | the
        maintenance of an enquiry service for the provision to any customer or
        an electricity supplier, on request and free of charge to that customer,
        of such data contained in the register as is relevant to the supply of
        electricity to premises which are (or are to be) owned or occupied by
        the customer, and the taking of such steps as will in the opinion of
        the licensee secure adequate publicity for the operation of the enquiry
    service.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|

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Addition of New Standard Conditions to Distribution Licences

Condition 14A. Basis of Charges for Metering Point Administration Services:
Requirements for Transparency

|1. | The licensee shall as soon as practicable prepare a statement in a form approved by the Authority setting out the basis upon which charges will be made for the provision of metering point
administration services, in such form and with such detail as shall be necessary to enable an electricity supplier to make a reasonable estimate of the charges to which the electricity supplier would become liable to pay for the provision of such
services and of the other terms, likely to have a material impact on the conduct of the electricity suppliers business, upon which the service would be provided and (without prejudice to the foregoing) including the information set out in
paragraph 2.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | The statement referred to in paragraph 1 shall include a schedule of charges for metering point administration services, together with an explanation of the methods by which and the principles
on which such charges will be calculated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|  
|3. | The Authority may, upon the written request of the licensee, issue a direction relieving the licensee of its obligations under paragraph 1 to such extent and subject to such terms and conditions
as the Authority may specify in that direction.                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|  
|4. | The licensee shall not in setting its charges for, or in setting the other terms that will apply to the provision of metering point administration services, restrict, distort or prevent
competition in the generation, distribution or supply of electricity.                                                                                                                                                                                                                                                                                                                                                                                                                                                
|  

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|5. | The
      licensee:                                                                                                                                                                                                                                                                                                                                       
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                           
|   | (a)                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                           
|   | (b)                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                           
|6. | The
      licensee shall send a copy of the statement prepared in accordance with
      paragraph 1, and of each revision of such statement, to the Authority.                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                           
|7. | The
      licensee shall give or send a copy of the statement prepared in accordance
      with paragraph 1, or (as the case may be) of the latest revision of such
      statement, to any person who requests a copy of such statement.                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                           
|8. | The
      licensee may make a charge for any statement given or sent pursuant to paragraph
      7 of an amount which shall not exceed the amount specified in directions
      issued by the Authority for the purposes of this condition based on the
      Authoritys estimate of the licensees reasonable costs of providing
      such a statement.
|   |                                                                                                                                                                                                                                                                                                                                                           

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|Condition
      14B. Non-Discrimination in the Provision of Metering Point Administration
      Services
|--------------------------------------------------------------------------------------------------------
|                                                                                                        
|1.                                                                                                      
|                                                                                                        
|2.                                                                                                      
|                                                                                                        

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|Condition
      14C. Requirement to Offer Terms for the Provision of Metering Point Administration
      Services
|-----------------------------------------------------------------------------------------------------------------
|                                                                                                                 
|1.                                                                                                               
|                                                                                                                 
|2.                                                                                                               
|                                                                                                                 
|3.                                                                                                               
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | (ii)                                                                                                                                                                                          | to be in conformity
      with the requirements of standard condition 14A (Basis of Charges for Metering
      Point Administration Services: Requirements for Transparency).
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                               |                                                                                                                                                                              
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                               | such other
      detailed terms in respect of each of the metering point administration services
      required as are or may be appropriate for the purpose of the agreement.               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                               |                                                                                                                                                                              
|4. | The licensee
      shall offer terms for an agreement in accordance with paragraph 2 as soon
      as practicable and (save where the Authority consents to a longer period)
      in any event not more than 28 days after receipt by the licensee (or its
      agent) from an electricity supplier of an application containing all such
      information as the licensee may reasonably require for the purpose of formulating
      the terms of the offer.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                               |                                                                                                                                                                              
|5. | The licensee
      shall not be obliged pursuant to this condition to offer to enter or to
      enter into any agreement if to do so would be likely to involve the licensee
      being:                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                               |                                                                                                                                                                              
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                               | in breach
      of its duties under section 9 of the Act;                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                               |                                                                                                                                                                              
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                               | in breach
      of any regulations made under section 29 of the Act or of any other enactment
      relating to safety or standards applicable in respect of the distribution
      business;
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                               |                                                                                                                                                                              
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                               | in breach
      of any Grid Code or Distribution Code; or                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                               |                                                                                                                                                                              
|   | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                               | in breach
      of the conditions.                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                               |                                                                                                                                                                              

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|6. | The licensee shall
      undertake metering point administration services in the most efficient and
      economic manner practicable having regard to the alternatives available
      and the other requirements of the licence and of the Act in so far as they
      relate to the provision of such services.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                   
|7. | In the provision of
      metering point administration services the licensee shall not restrict,
      distort or prevent competition in the supply of electricity.                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                   

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|Condition 14D. Functions of the Authority
|-----------------------------------------

|1. | If, after a period which appears to the Authority to be reasonable for the
        purpose, the licensee has failed to enter into an agreement with an electricity
        supplier entitled or claiming to be entitled there to pursuant to a request
        under standard condition 14C (Requirement to Offer Terms for the Provision
        of Metering Point Administration Services), the Authority may, on the
        application of such an electricity supplier or the licensee,
settle any terms of the agreement in dispute between the licensee and the electricity
        supplier in such manner as appears to the Authority to be reasonable
        having (in so far as relevant) regard in particular to the following
    considerations:
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|  
|2. | In so far as an electricity supplier entitled or claiming to be entitled
        to an offer under standard condition 14C (Requirement to Offer Terms
        for the Provision of Metering Point Administration Services) wishes to
    proceed on the basis of the agreement as                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|  

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|   | settled by the Authority pursuant to paragraph 1, the licensee shall forthwith
    enter into and implement such agreement in accordance with its terms.                                                                                                                                                                                                                                                                                                                                                                                                   
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|3. | If either party to such agreement proposes to vary the contractual terms
        of any agreement for the provision of metering point administration services
        entered into pursuant to standard condition 14C (Requirement to Offer
        Terms for the Provision of Metering Point Administration Services) in
        any manner provided for under such agreement, the Authority may, at the
        request of that party, settle any dispute relating to such variation
        in such
manner as appears to the Authority to be reasonable.
|  
|4. | The Authority may (following consultation with the licensee) issue directions
        relieving the licensee of its obligations under standard condition 14C
        (Requirement to Offer Terms for the Provision of Metering Point Administration
        Services) relating to metering point administration services in respect
        of such parts of that condition and to such extent as may be specified
    in the directions.                                                                                                                  



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Condition 15. Compliance with the Grid Codes

|1. | The licensee shall comply with the provisions of every Grid Code in so far as applicable to it.                                                                                                                                                                                                                                  
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | The Authority may (following consultation with the transmission company responsible for the relevant Grid Code) issue directions relieving the licensee of its obligation under paragraph 1 in
respect of such parts of such Grid Code and to such extent and subject to such conditions as may be specified in those directions.



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|Condition 16. Security Arrangements
|-----------------------------------

|   |                                                                                                                                                                                                                                                                         
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1. | Insofar as the licensee shall distribute or offer to distribute electricity within any area of England and Wales, the licensee shall comply with the provisions of the Fuel Security Code and such
provisions shall have effect as if they were set out in this licence.
|  
|2. | Insofar as the licensee shall distribute or offer to distribute electricity within any area of Scotland:                                                                                                                                                                
|  
|   | (a)                                                                                                                                                                                                                                                                     
|  
|   | (b)                                                                                                                                                                                                                                                                     
|  
|3. | In this condition:                                                                                                                                                                                                                                                      
|  

| |  | Fuel
    Security Code |  | means
    the document of that title designated as such by the Secretary of State as
    from time to time amended.
| |  | ------------------------ |  | -------------------------------------------------------------------------------------------------------------------



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Condition
17. Provision of Services for Persons who are of Pensionable Age or Disabled or
Chronically Sick

|1. | The licensee shall, no later than 1 November 2001, prepare and submit to the Authority for its approval a code of practice detailing the special services the licensee will make available for
domestic customers who are of pensionable age or disabled or chronically sick.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | The code of practice shall include arrangements whereby the licensee will:                                                                                                                                                                                                   
|  
|   | (a)                                                                                                                                                                                                                                                                          
|  
|   | (b)                                                                                                                                                                                                                                                                          
|  
|   | (c)                                                                                                                                                                                                                                                                          
|  
|3. | This condition is subject to the provisions of standard condition 22 (Preparation, Review of and Compliance with Customer Service Codes).                                                                                                                                    
|  



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Condition
          18. Provision of Services for Persons who are Blind or Deaf

|1. | The licensee shall, no later than 1 November 2001, prepare and submit to the Authority for its approval a code of practice detailing the special services the licensee will make available for
domestic customers who are disabled by virtue of being blind or partially sighted, or deaf or hearing impaired.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | The code of practice shall include arrangements by which the licensee will, on request, in each case free of charge:                                                                                                                                                                                          
|  
|   | (a)                                                                                                                                                                                                                                                                                                           
|  
|   | (b)                                                                                                                                                                                                                                                                                                           
|  
|3. | This condition is subject to the provisions of standard condition 22 (Preparation, Review of and Compliance with Customer Service Codes).                                                                                                                                                                     
|  



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Licence Conditions | 68 | September 2001

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Condition 19. Code of Practice on Procedures with Respect to Site Access

|1. | The licensee shall,
no later than 1 November 2001, prepare and submit to the Authority for its approval
a code of practice setting out the principles and procedures the licensee will
follow in respect of any person acting on its behalf who requires access to
customers premises.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | The code of practice shall include procedures calculated to ensure that persons visiting customers premises on behalf of the licensee:                                                                                                                                                
|  
|   | (a)                                                                                                                                                                                                                                                                                    
|  
|   | (b)                                                                                                                                                                                                                                                                                    
|  
|   | (c)                                                                                                                                                                                                                                                                                    
|  
|   | (d)                                                                                                                                                                                                                                                                                    
|  
|   | (e)                                                                                                                                                                                                                                                                                    
|  
|   | (f)                                                                                                                                                                                                                                                                                    
|  
|3. | This condition is subject to the provisions of standard condition 22 (Preparation, Review of and Compliance with Customer Service Codes).                                                                                                                                              
|  



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Licence Conditions | 69 | September 2001

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Condition 20. Payments in Relation to Standards of Performance

|1 | The licensee
        shall not enter into a use of system agreement with any electricity supplier
        that does not provide for the licensee to make payments in respect of
        the performance of the distribution business of the licensee to the electricity
        supplier for the benefit of any customer of that electricity supplier
        equivalent to such sums as would have been paid pursuant to any provision
        of Regulations made under section
39A of the
Act.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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Licence Conditions | 70 | September 2001

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Condition 21. Complaint Handling Procedure

|1. | The licensee shall, no later than 1 November 2001, prepare and submit to the Authority for its approval a code of practice detailing the procedure for handling complaints from domestic customers
about the manner in which the licensee conducts its distribution business.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | Any procedure established in accordance with this condition{xe "Condition"}shall specify the periods within which it is intended that different
descriptions of complaint should be processed and resolved.                                                                  
|  
|3. | This condition is subject to the provisions of standard condition 22 (Preparation, Review of and Compliance with Customer Service Codes).                                                                                                                                    
|  



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Distribution    |    |               
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Licence Conditions | 71 | September 2001

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Condition 22. Preparation, Review of and Compliance with Customer Service Codes

|1. | This condition applies to any code of practice required to be prepared by the licensee pursuant to standard condition 17 (Provision of Services for Persons who are of Pensionable Age or Disabled
or Chronically Sick), standard condition 18 (Provision of Services for Persons who are Blind or Deaf), standard condition 19 (Code of Practice on Procedures in Respect of Site Access) and standard condition 21 (Complaint Handling Procedure) of this
licence.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | In first preparing such a code the licensee shall, prior to submitting that code to the Authority, consult the Consumer Council and shall have regard to any representations made by the Consumer
Council about such code or the manner in which it is likely to be operated.                                                                                                                                                                                       
|  
|3. | Where before the expiry of 30 days of the licensee first submitting such code to the Authority for its approval the Authority notifies the licensee that the Authority considers the code is not
sufficient for the purposes of meeting the requirements of this licence, the licensee shall forthwith make such changes as the Authority may require.                                                                                                              
|  
|4. | The licensee shall, whenever requested to do so by the Authority, review such code and the manner in which it has been operated, with a view to determining whether any modification should be
made to it or to the manner of its operation.                                                                                                                                                                                                                        
|  
|5. | In carrying out any such review the licensee shall consult the Consumer Council and shall have regard to any representations made by the Consumer Council about such code or the manner in which
it is likely to be or (as the case may be) has been operated.                                                                                                                                                                                                      
|  
|6. | The licensee shall submit any revision of such code which, after consulting the Consumer Council in accordance with paragraph 5, the licensee wishes to make, to                                                                                                                                                                                                                                                                                                    
|  



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Licence Conditions | 72 | September 2001

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|   | the
      Authority for its approval and following its approval in writing shall then
      revise the code accordingly.                                                                                                                                                                                                          
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                   
|7. | The
      licensee shall:                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                   
|   | (a)                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                   
|   | (b)                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                   
|   | (c)                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                   
|8. | No
      changes may be made to any code otherwise than in accordance with the foregoing
      procedures.                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                   
|9. | The
      licensee shall ensure, so far as reasonably practicable, that it complies
      with such arrangements or procedures (as the case may be) as are contained
      in or described by any code to which this condition applies and approved
      by the Authority or any revision to such code approved by the Authority.



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      Distribution    |    |                     
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|Standard
      Licence Conditions | 73 | September
      2001

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|Condition
      23. Record of and Report on Performance
|-------------------------------------------------------
|                                                       
|1.                                                     
|                                                       
|2.                                                     
|                                                       
|3.                                                     
|                                                       
|4.                                                     
|                                                       
|                                                       
|                                                       
|                                                       
|                                                       
|                                                       
|                                                       
|5.                                                     



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      Distribution    |    |                     
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      Licence Conditions | 74 | September
      2001

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|Condition
      24. Provision of Information to the Authority
|-------------------------------------------------------------
|                                                             
|1.                                                           
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|2.                                                           
|                                                             
|3.                                                           
|                                                             
|4.                                                           



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      Distribution    |    |                     
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      Licence Conditions | 75 | September
      2001

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|   | licensee
      or, where the ultimate controller is a corporate body, any of the subsidiaries
      of such
      a corporate ultimate controller (other than the subsidiaries of the licensee)
      at a time when:                                                                                                                                                                                                                                                                                                                                                                                                       
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|5. | The
      licensee shall not be required by the Authority to furnish it under this
      condition with information for the purpose of the exercise of its functions
      under section 47 of the Act.                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|6. | The
      licensee shall, if so requested by the Authority, give reasoned comments
      on the accuracy and text of any information or advice (so far as relating
      to its activities as holder of an electricity distribution licence) which
      the Authority proposes to publish pursuant to section 48 of the Act.                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|7. | This
      condition shall not require the licensee to produce any documents or give
      any information which it could not be compelled to produce or give in evidence
      in civil proceedings before a court.                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|8. | The
      power of the Authority to call for information under this condition is in
      addition to the power of the Authority to call for information under or
      pursuant to any other condition. There shall be a presumption that the provision
      of information in accordance with any other condition is sufficient for
      the purposes of that condition, but that presumption shall be rebutted,
      if the Authority states in writing that in its opinion such further information
      is, or is likely to be, necessary to enable it to exercise functions under
      the condition in question.



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      Distribution    |    |                     
|--------------------------------- | -- | --------------------
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      Licence Conditions | 76 | September
      2001

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Condition 25. Long Term Development Statement

|1. | The
      purposes of this condition are:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|2. | Where
      the Authority gives the licensee a direction to do so, the licensee shall
      prepare and maintain a statement in such form as may be specified in the
      direction for the purposes of this condition generally, containing, with
      respect to each of the 5 succeeding years on a rolling basis beginning with
      1stApril
      in any year, such information as it is reasonably practicable for the licensee
      to provide which identifies or relates to the matters specified in paragraph
      4.                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|3. | The
      direction specified in paragraph 2 may be given by the Authority at any
      time during a year. Any statement to be prepared by the licensee pursuant
      to paragraph 2 shall be prepared within 3 months of the giving of the direction.
      The licensee shall be obliged to include in the first such statement prepared
      the information referred to in paragraph 2 with respect to each year of
      the 5 succeeding years on a rolling basis beginning with 1stApril
      of the year in which the direction is given.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|4. | The
      matters referred to at paragraph 2 are:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  



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      Distribution    |    |                     
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|   | (d)                                                                                                                                                                                                                                                                                       | the licensees plans for modifying its distribution system, including
    works which it expects to be carried out for that purpose within the forthcoming
    2 years (from the date of the
statement);                                                                                 
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (e)                                                                                                                                                                                                                                                                                       | the identification of those parts of the licensees distribution system
    which are likely to reach the limit of their capability during the succeeding
    5 year period, including those parts which may experience thermal overloading,
    voltage problems or excess fault levels;
|  
|   | (f)                                                                                                                                                                                                                                                                                       | the licensees plans to alleviate or rectify any predicted shortcomings
    in the operation and/or capability of its distribution system; and                                                                                                                                           
|  
|   | (g)                                                                                                                                                                                                                                                                                       | (where applicable) how the actual developments in the recent past compared
    with the licensees plans contained in previous statements.                                                                                                                                               
|  
|5. | Any statement to be prepared by the licensee pursuant to paragraph 2 shall
    be prepared within 3 months of the giving of the relevant direction.                                                                                                                                      
|  
|6. | Except in so far as the Authority otherwise consents, the licensee shall
    on an annual basis prepare a revision of any statement prepared under paragraph
    2 so as to ensure that, so far as is reasonably practicable, the information
    in the revised statement is up to date.
|  
|7. | The licensee shall, subject to any requirement to comply with the listing
    rules (within the meaning of Part IV of the Financial Services Act 1986)
    of The Stock Exchange and with paragraph 8                                                                                   
|  
|   | (a)                                                                                                                                                                                                                                                                                       | furnish the Authority with a copy of the statement prepared under paragraph
    2 and of each revision of the statement prepared under paragraph 6;                                                                                                                                      
|  
|   | (b)                                                                                                                                                                                                                                                                                       | in such form and manner as the Authority may direct, publish such a summary
    of the statement or, as the case may be, of a revision of the statement as
    will assist a person in deciding whether to
ask for a copy of the statement;                                              
|  
|   | (c)                                                                                                                                                                                                                                                                                       | prepare a version of the statement or revision which excludes, so far as
    is practicable, any such matter as is mentioned in paragraph 8 and send a
    copy                                                                                                                          
|  

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|    | thereof to any person who asks for one and makes such payment to the licensee
in respect of the cost thereof as it may require not exceeding such amount as
the Authority may from time to time
approve for the purposes hereof.                                                                                     
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|8.  | In complying with the requirements of paragraph 7(b), the licensee shall
    have regard to the need for excluding, so far as is practicable, any matter
    which relates to the affairs of a person where the publication of that matter
    would or might seriously and prejudicially affect his interests.      
|   
|9.  | Any question arising under paragraph 8 as to whether the publication of some
    matter which relates to the affairs of a person would or might seriously
    and prejudicially affect his interests shall
be determined by the Authority.                                                                           
|   
|10. | A direction given under paragraph 2 is only effective where the Authority
    has informed the licensee of its intention to do so in a notice which:                                                                                                                                                                 
|   
|    | (a)                                                                                                                                                                                                                                                                                                                  
|   
|    | (b)                                                                                                                                                                                                                                                                                                                  
|   
|    | (c)                                                                                                                                                                                                                                                                                                                  
|   
|    | and has considered any representations which are duly made by the licensee and
are not withdrawn.                                                                                                                                                                                                                    
|   
|11. | Any consultation undertaken by the Authority with the holder of a licence
    granted under section 6(1)(c) of the Act before the determination of this
    standard condition by the Secretary of State pursuant to section 33(1) of
    the Utilities Act 2000 shall be effective for the purposes of paragraph 10.
|   

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|12. | In this condition, distribution arrangements includes distribution
    arrangements which relate to 
|--- | -------------------------------------------------------------------------------------------------------
|   
|    | (a)                                                                                                    
|   
|    | (b)                                                                                                    
|   

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Condition
26. Compliance with CUSC

|1. | Insofar as the licensee distributes or offers to distribute
    to any premises situated in England and Wales, the licensee shall be a party
    to the CUSC Framework Agreement and shall comply with the CUSC and, if it
    is party to the agreement known as the Master Connection and Use of System
    Agreement (MCUSA), execute such other documents as shall be stated
    as required to be made in any direction issued by the Authority to enable
    the MCUSA and its supplemental agreements and ancillary service agreements
    (as defined or referred to in MCUSA) and any associated agreements derived
    from MCUSA to be amended appropriately into the CUSC    Framework Agreement, CUSC, bilateral agreements, construction
    agreements and, so far as is appropriate, associated agreements derived from
    CUSC so as to maintain continuity of contractual
relationships.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | The licensee shall take all reasonable steps to secure and implement (consistently
    with the procedures applicable under or in relation to the core industry
    documents to which it is a party (or in relation to which it holds rights
    in respect of amendment)as modified or replaced from time to time), and shall
    not take any steps to prevent or unduly delay, changes to those documents,
    such changes being changes which are appropriate in order to give full and
    timely effect to and/or in consequence of any modification which has been
    made to the CUSC.                                                                                                                                                                                                                                                                                                            
|  
|3. | For the avoidance of doubt, paragraph 2 is without prejudice to any rights
    of approval, veto or direction in respect of proposed changes to the core
    industry documents which the Authority may
have.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|  
|4. | In this condition:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  

| |  | bilateral
    agreement | means
        an agreement between the holder of a transmission licence in England
    and Wales and a CUSC user supplemental to the CUSC relating to
| |  | ------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------

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| |  |                            | a direct connection to that transmission systemidentifying the relevant connection site and setting out other site specific
details in relation to that connection to the transmission system, including
provisions relating to payment of connection charges.                                                                                                                                                                                                  
| |  | -------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                           
| |  |                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | construction agreement   | means an agreement between the holder of a transmission licence in England and
Wales and a CUSC user in respect of construction works required on that transmission
system and the associated construction works of the CUSC user in relation to
a connection to the transmission system or in relation to a generating station
connected to a distribution system in England and Wales, whether for the initial
connection or a modification of the connection.
| |  |                           
| |  |                           
| |  |                           
| |  |                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | core industry documents  | means those documents which have beendesignated by the Secretary of State as such.                                                                                                                                                                                                                                                                                                                                                                              
| |  |                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | CUSC                     | means the Connection and Use of System Code required to be in place pursuant
to the transmission licence granted to the transmission company in England and
Wales, as from time to time modified.                                                                                                                                                                                                                                                               
| |  |                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | CUSC Framework Agreement | means the agreement of that title, in the form approved by the Secretary of State,
by which the CUSC is made contractually binding between the parties to that agreement,
as amended from time to time with the approval of the Secretary of State.                                                                                                                                                                                                             
| |  |                           

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Condition 27. Not used



Condition 28. Not used

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|--------------------------- | -- | --------------
|Standard Licence Conditions | 83 | September 2001

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|Condition 29. Disposal of Relevant Assets
|-----------------------------------------

|1. | The licensee shall not dispose of or relinquish operational control over any relevant asset otherwise than in accordance with the following paragraphs of this condition.                                                                                                                                                                                                                                                                                                                                             
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | Save as provided in paragraph 3, the licensee shall give to the Authority not less than two months prior written notice of its intention to dispose of or relinquish operational control
over any relevant asset, together with such further information as the Authority may request relating to such asset or the circumstances of such intended disposal or relinquishment of control or to the intentions in regard thereto of the person
proposing to acquire such asset or operational control over such asset.
|  
|3. | Notwithstanding paragraphs 1 and 2, the licensee may dispose of or relinquish operational control over any relevant asset:                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|  
|4. | Notwithstanding paragraph 1, the licensee may dispose of or relinquish operational control over any relevant asset as is specified in any notice given under paragraph 2 in circumstances
where:                                                                                                                                                                                                                                                                                                                      
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|  

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|   | disposed or operational control is proposed to be relinquished to) of such conditions as the Authority may specify; or
|-- | ----------------------------------------------------------------------------------------------------------------------
|  
|   | (b)                                                                                                                   
|  
|5. | In this condition:                                                                                                    

| |  |            |                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  | ---------- | ------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | disposal | means:                                                                   
| |  |            |                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  |            | (a)                                                                       | in relation
        to disposal of a relevant asset situated in England and Wales includes
        any sale, gift, exchange, assignment, lease, licence, loan, mortgage,
        charge, or grant of any other encumbrance or the permitting of any encumbrance
        to subsist or any
other disposition;                                                                                                                                                                                                                
| |  |            |                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  |            | (b)                                                                       | in relation
        to disposal of a relevant asset situated in Scotland includes the grant
        of any disposition, conveyance, contract of excambion, any lease, assignation,
        licence, the grant of any right of possession, loan, standard security,
        floating charge to a third party, or the grant of any servitude right,
        wayleave or any other transaction or event which is capable under any
        enactment or rule of law of affecting the title to a registered interest
    in land
| |  |            |                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  |            | and dispose and
    cognate expressions shall be construed accordingly;



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| |  | relinquishment
	    of operational control | includes, without
limitation, entering into any
agreement or arrangement
whereby operational control
of a relevant
asset or relevant assets is not
or ceases to
be under the sole management
    of the licensee.
| |  | -------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                              |                                                                                                                                                                                                                  



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Condition 30. Not used



Condition 31. Not used

|Electricity Distribution    |    |               
|--------------------------- | -- | --------------
|Standard Licence Conditions | 87 | September 2001

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ATTACHMENT
  A

Condition
  30A. BETTA implementation

|1. | The
      objective of this licence condition is to require the licensee to take certain
      steps and do certain things which are within its power and which are or
      may be necessary or expedient in order that BETTA can take effect on or
      around 1 April 2005 or such later date as the Secretary of State may designate
      as the BETTA go- live date.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                            
|2. | Without
      prejudice to paragraph 1, the licensee shall take such steps and do such
      things as are within its power and as are or may be necessary or expedient
      in order to give full and timely effect:                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                            
|   | (a)                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                            
|   | (b)                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                            



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|   |                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Code) and
      paragraph 6 of standard condition D9 (Licensees grid code), respectively;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | and
      shall, in each case, take such reasonable steps and do such things as are
      reasonable and, in each case, as are within its power and as are or may
      be necessary or expedient to give full and timely effect to the matters
      envisaged by such modifications or amendments.
|   |                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|3. | Without
      prejudice to paragraph 1, the licensee shall take all reasonable steps and
      do such things as are reasonable and, in each case, as are within its power
      and as are or may be necessary in order to give full and timely effect to:                                         
|   |                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | (a)                                                                                                                                                                                                                                                                                                  | the
      modifications to this licence which either the Secretary of State has notified
      to the licensee are to be made to this licence pursuant to the powers vested
      in her under Chapter 1 of Part 3 of the Energy Act 2004 (Electricity trading
      and transmission) or which the licensee otherwise knows (or reasonably anticipates)
      are to be made to this licence, but which, at the relevant time, do not
      have effect in this licence; and
|   |                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | (b)                                                                                                                                                                                                                                                                                                  | the
      modifications or amendments:                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                      | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | to the BSC,
      CUSC and the Grid Code which are designated by the Secretary of State on
      or before 8 September 2004 pursuant to the powers vested in her under Chapter
      1 of Part 3 of the Energy Act 2004 (Electricity trading and transmission)
      or pursuant to any power under this or any other licence; and                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                      | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | to the BSC,
      CUSC, Grid Code or any Scottish grid code which are directed by the Authority
      pursuant to the provisions of the following paragraphs of the standard licence
      conditions for electricity transmission licences: paragraph 6 of standard
      condition C3 (Balancing and Settlement Code (BSC)), paragraph 8 of standard
      condition C10 (Connection and Use of System Code (CUSC)), paragraph 7 of
      standard condition C14 (Grid Code) and paragraph 6 of standard condition
      D9 (Licensees grid code), respectively or which the licensee otherwise
      knows (or



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|   |                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                           | reasonably
      anticipates) are to be directed by the Authority pursuant to such provisions,                                                                                                                                                                                                                                                                                                                                                                                 
|-- | -------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                        | but
      which, in either case, do not, at the relevant time, have full effect in
      the relevant code and shall, in each case, take such reasonable steps and
      do such things as are reasonable and, in each case, as are within its power
      and as are or may be necessary or expedient to give full and timely effect
      to the matters envisaged by such modifications or amendments.
|   |                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|4. | Without
      prejudice to the other provisions of this condition, the licensee shall:
|   |                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | (a)                                                                                    | cooperate
      with other electricity licensees and such other persons as the Authority
      may determine for these purposes and take such steps and do such things
      as are reasonable and within its power and as are or may be necessary or
      expedient to enable such electricity licensees to comply with their licence
      obligations to give full and timely effect to:             
|   |                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                        | (i)                                                                                                                                                                                                                                                                                                                                                                                                       | the modifications
      made or to be made to their licence by the Secretary of State pursuant to
      the powers vested in her under Chapter 1 of Part 3 of the Energy Act 2004
      (Electricity trading and transmission);                                                                                                                                                                                                                                                
|   |                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                        | (ii)                                                                                                                                                                                                                                                                                                                                                                                                      | the modifications
      or amendments to the BSC, CUSC and the Grid Code designated by the Secretary
      of State on or before 8 September 2004 pursuant to the powers vested in
      her under Chapter 1 of Part 3 of the Energy Act 2004 (Electricity trading
      and transmission) or pursuant to any power under this or any other licence;                                                                                                                           
|   |                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                        | (iii)                                                                                                                                                                                                                                                                                                                                                                                                     | the modifications
      or amendments to the STC, BSC, CUSC, Grid Code or any Scottish grid code
      which are directed by the Authority pursuant to the following provisions
      of the standard conditions for electricity transmission licences: paragraph
      7 of standard condition B12 (System Operator- Transmission Owner Code (STC)),
      paragraph 6 of standard condition C3 (Balancing and Settlement Code (BSC)),
      paragraph 8 of standard condition
|   |                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

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|   |                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | C10 (Connection
      and Use of System Code (CUSC)), paragraph 7 of standard condition C14 (Grid
      Code) and paragraph 6 of standard condition D9 (Licensees grid code),
      respectively; and
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                       | (iv)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | where that
      other licensee is a transmission licensee, the provisions of the STC, and                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                       | the
      matters envisaged by such modifications and the provisions of the STC, as
      appropriate, and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                       
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                   | if
      the licensee becomes aware of any conflict between its compliance with the
      provisions of this condition and its compliance with any other condition
      of this licence or any Code, document or agreement to which the licensee
      is obliged to be or become a party pursuant to this licence, the licensee
      shall forthwith give written notice of such conflict to the Authority and
      shall comply with any direction of the Authority in relation to the same
      (which direction may only be made following such consultation with the licensee
      (and such other persons as the Authority deems appropriate) in such manner
      as the Authority deems appropriate).
|   |                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                       
|5. | The
      licensee shall provide to the Authority, in such manner and at such times
      as the Authority may reasonably require, such information and shall procure
      and furnish to it such reports as the Authority may require or deem necessary
      or appropriate to enable the Authority to monitor the licensees compliance
      with the requirements of this condition.           
|   |                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                       
|6. | For
      the purposes of sub-paragraph 2(b) and paragraph 3 above, a modification
      or amendment shall have full effect in a code where that modification or
      amendment, as appropriate, has been implemented and is effective in that
      code and is not prevented from having effect or being implemented in that
      code, at the relevant time, by another provision of that code.



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ATTACHMENT
  B

Condition
  30B. BETTA run-off arrangements scheme

|1. | The
      licensee shall, to the extent applicable to it, comply with the BETTA run-off
      arrangements scheme (the scheme) established and as modified
      from time to time in accordance with this condition.                                                                                                                                                       
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                               
|2. | For
      the purposes of this condition, the objective of the scheme shall be the
      running-off of the non-GB trading and transmission arrangements to the extent
      that the Authority considers it necessary or expedient to do so to ensure
      that those arrangements do not prevent or in any way hinder the successful
      and effective implementation of:
|   |                                                                                                                                                                                                                                                                                                                                                                               
|   | (a)                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                               
|   | (b)                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                               



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|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | the provisions of the STC which are
        designated by the Secretary of State on or before 8 September 2004 pursuant
        to the powers vested in her under Chapter 1 of Part 3 of the Energy Act
        2004 (Electricity trading and transmission) or pursuant to any power
    under this or any other licence,
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                          
|   | and the matters envisaged by such modifications
    or amendments or the STC, as appropriate.                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                          
|3. | The scheme shall be designated by the
        Secretary of State for the purposes of this condition, following such
        consultation as the Secretary of State deems appropriate with those persons
        that the Secretary of State considers are likely to be affected by the
    scheme and such other persons as the Secretary of State deems appropriate.                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                          
|4. | The scheme shall set out the steps to
        be taken (or procured) by the licensee or by any authorised electricity
        operator or by any other person who undertakes to comply with the scheme,
        which are, in the opinion of the Secretary of State or, in respect of
        any subsequent changes made to the scheme by the Authority pursuant to
        paragraph 6 below, in the opinion of the Authority, reasonably required
        in order to achieve the objective
described in paragraph 2.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                          
|5. | The scheme may provide, without limitation:                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                          
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | for all or some of its provisions to
    have contractual force;                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                          
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | for securing or facilitating the amendment
        of all or any of the relevant documents in a manner which is consistent
    with the objective described in paragraph 2; and                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                          
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | for the making by the Authority of determinations
        in respect of such matters affecting such persons, including the licensee,
    as may be specified in the scheme.                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                          
|6. | The Authority may (with the consent
        of the Secretary of State) direct that the scheme be amended (following
        such consultation as the Authority deems appropriate with those persons
        that the Authority considers are likely to be affected by such an amendment)
    where the Authority considers it necessary or                                                                                                                                                                              



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|    | expedient to do so for the purposes
    of achieving the objective described in paragraph 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|7.  | The Authority shall serve a copy of
        any such direction on the licensee, and thereupon, the licensee shall
    comply with the scheme as modified by the direction.                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|8.  | If the licensee becomes aware of any
        conflict between the requirements contained in the scheme and those imposed
        on the licensee by any other condition of this licence, the licensee
        shall forthwith give notice of such conflict to the Authority and shall
        comply with any direction of the Authority in relation to the same (which
        direction may only be made following such consultation with the licensee
        (and such other persons as the Authority deems appropriate) in such manner
    as the Authority deems appropriate).
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|9.  | The Authority may not make any direction
    under paragraph 6 of this condition after the BETTA go-live date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|10. | In this condition:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

| |  | British Grid Systems
    Agreement | means the agreement known as the British
        Grid Systems agreement and made between The National Grid Company plc,
        Scottish Hydro-Electric Plc and Scottish Power Plc and dated 30 March
    1990, as amended or modified from time to time.
| |  | ------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                      |                                                                                                                                                                                                                                                          
| |  | interconnection                    | means:                                                                                                                                                                                                                                                   
| |  |                                      | the 275kV and 400kV circuits between
        and including the associated switchgear at Harker sub-station in Cumbria
        and the associated switchgear
    at Strathaven sub-station in Lanarkshire;                                                
| |  |                                      |                                                                                                                                                                                                                                                          
| |  |                                      | the 275kV transmission circuit between
    and including the associated switchgear at                                                                                                                                                                    



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| |  |  | Cockenzie in East Lothian and the associated
    switchgear at Stella in Tyne and Wear; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  |  | the 400kV transmission circuit between
        and including the associated switchgear at Torness in East Lothian and
    the associated switchgear at Stella in Tyne and Wear                                                                                                                                                                                                                                                                                                                                                                                                   
| |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  |  | all as existing at the date
        on which the transmission licence of each existing Scottish licensee
        comes into
        force as from time to time maintained, repaired or renewed, together
        with any alteration, modification
    or addition (other than maintenance, repair or renewal) which
        is primarily
designed to effect a permanent increase in one or more particular interconnection
capacities as they exist immediately prior to such alteration, modification or
addition and as from time to time maintained,
repaired or renewed; and
| |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  |  | the 132kV transmission circuit between
        and including (and directly connecting) the associated switchgear at
        Chapelcross and the associated switchgear at Harker sub-station in Cumbria,
    and                                                                                                                                                                                                                                                                                                                                                                  
| |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  |  | the 132kV transmission circuit between
        and including (and connecting, via Junction V) the associated switchgear
        at Chapelcross and the associated switchgear at Harker sub-station in
    Cumbria,                                                                                                                                                                                                                                                                                                                                                               



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| |  |                                                        | all as existing at the date on which
    the transmission licence of each existing Scottish licensee comes into force
    and as from time to time maintained, repaired or renewed.                                                                                                                                                                                                                                        
| |  | ------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | non-GB trading and transmission
        arrangements | means those arrangements for, amongst
        other things, the separate trading or transmission of electricity in
        Scotland, the separate trading or transmission of electricity in England
        and Wales and the trading or transmission of electricity between England
        and Wales (taken as a whole) and Scotland which are defined and governed
    by, amongst other things, the relevant documents.
| |  |                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | relevant documents                                   | means the documents which relate to the
    non-GB trading and transmission arrangements, including, without limitation:                                                                                                                                                                                                                                                                                                   
| |  |                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  |                                                        | (a)                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  |                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  |                                                        | (b)                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  |                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  |                                                        | (c)                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  |                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  |                                                        | (d)                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  |                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  |                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                            



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| |  |                                     |                                                                                                                                                                                                          | (ii)  | the use of or connection to the Scottish
    interconnection; and                   
| |  | ----------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----- | ------------------------------------------------------------------------------------
| |  |                                     |                                                                                                                                                                                                          |       |                                                                                     
| |  |                                     |                                                                                                                                                                                                          | (iii) | the use of, or connection to, a distribution
    or transmission system in Scotland.
| |  |                                     |                                                                                                                                                                                                          |       |                                                                                     
| |  | running-off                       | means bringing to an end.                                                                                                                                                                               
| |  |                                     |                                                                                                                                                                                                          |       |                                                                                     
| |  | Scottish interconnection          | means such part of the interconnection
    as is situated in Scotland.                                                                                                                                  
| |  |                                     |                                                                                                                                                                                                          |       |                                                                                     
| |  | Scottish licensee                 | means the holder of a transmission licence
    at the date that this condition takes effect in this licence but shall not
    include the system operator.                                              
| |  |                                     |                                                                                                                                                                                                          |       |                                                                                     
| |  | Settlement Agreement for Scotland | has the meaning given to it in standard
    condition B12 (Settlement Agreement for Scotland).                                                                                                          
| |  |                                     |                                                                                                                                                                                                          |       |                                                                                     
| |  | System Operation Agreement        | means the agreement known as the System
    Operation agreement and made between Scottish Hydro-Electric Plc and Scottish
    Power Plc and dated 1 June 1990, as amended or modified from time to time.



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ATTACHMENT C

Condition 30C. Offers for connection to or use of the GB transmission system in the transition period

|1. | The licensee
    shall:
|-- | -----------------------
|  
|   | (a)                    
|  
|   |                        
|  
|   |                        
|  
|   |                        
|  
|   | (b)                    
|  
|   | (c)                    

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| |  | the terms of such
        agreement have not been settled by the date whichfalls
        two weeks prior to the BETTA go-live date, forthwith enter
into anagreement
with the system operator for connection to or use of the
GBtransmission system,
or amend an existing agreement, on the basis
of theterms offered
by the system operator pending resolution of the terms
ofthat agreement
by the Authority in accordance with paragraph 11
ofcondition C18
(Requirement to offer terms for connection or use
of theGB transmission
system during the transition period) of the systemoperators
licence. The Authoritys determination of the
terms of anysuch
agreement may, where and to the extent appropriate, take accountof
and make appropriate adjustments to reflect the difference betweenthe
terms of that agreement as settled and the terms of that agreementwhich
applied during the period from the BETTA go-live date to the dateupon
which the agreement as settled takes effect.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





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AMENDMENTS TO STANDARD CONDITION 32 BY THE ALTERATION OF THE DEFINITION
OF data transfer catalogue AND OMISSION OF THE DEFINITIONS
OF Metering Point Administration Service AND metering
point administration services

Condition 32. Interpretation of Section C (Distribution Services
Obligations)



| |  | data transfer
    catalogue | has the meaning
        given at paragraph4(c)
        of standard condition 37 (TheMetering
        Point Administration Serviceand
    the Master RegistrationAgreement).
| |  | ----------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5

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| |  |                         | accordance with
          standard condition 37(The
          Metering Point AdministrationService
          and the Master RegistrationAgreement)
          or, where the context requires,  means the
          equivalent services provided by any other distribution
          services provider in accordance with the provisions
    of its  distribution licence.
| |  | ----------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                         |                                                                                                                                                                                                                                                                                                                                                                         
| |  | permitted
    purpose | means the purpose
    of all or any of the  following:                                                                                                                                                                                                                                                                                                                  
| |  |                         |                                                                                                                                                                                                                                                                                                                                                                         
| |  |                         | (a)                                                                                                                                                                                                                                                                                                                                                                     
| |  |                         |                                                                                                                                                                                                                                                                                                                                                                         
| |  |                         | (b)                                                                                                                                                                                                                                                                                                                                                                     
| |  |                         |                                                                                                                                                                                                                                                                                                                                                                         
| |  |                         | (c)                                                                                                                                                                                                                                                                                                                                                                     
| |  |                         |                                                                                                                                                                                                                                                                                                                                                                         



|Electricity
          Distribution    |    |                       
|------------------------------------- | -- | ----------------------
|Standard
          Licence Conditions | 89 | September
        2001

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Condition 32A. Convenience Customers

|1. | The licensee shall establish and maintain an accurate list of any convenience
    customers.                 
|-- | -------------------------------------------------------------------------------------------------------------
|  
|2. | The licensee shall update the list referred to in paragraph 1 at least once
    in every period of 12 months.
|  



|Electricity
          Distribution    |    |                       
|------------------------------------- | -- | ----------------------
|Standard
          Licence Conditions | 90 | September
        2001

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Condition 33. Not used



|Electricity
Distribution    |    |               
|--------------------------- | -- | --------------
|Standard
Licence Conditions | 91 | September 2001

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Condition 34. Compulsory Acquisition of Land etc.

|1. | The powers and rights conferred by or under the provisions of Schedule 3 to the Act (Compulsory Acquisition of Land etc. by Licence Holders) shall have effect in relation to the licensee to
enable the licensee to carry on the activities authorised by this licence and which:
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (a)                                                                                                                                                                                                                                                                               
|  
|   | (b)                                                                                                                                                                                                                                                                               
|  



|Electricity
          Distribution    |    |                       
|------------------------------------- | -- | ----------------------
|Standard
          Licence Conditions | 92 | September
        2001

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Condition
35. Other Powers etc.

|1. | The
        powers and rights conferred by or under the provisions of Schedule 4
        to the Act (Other
        Powers etc. of Licence Holders) shall have effect in relation to the
        licensee to enable
        the licensee to carry on the activities authorised by this licence and
    which:
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (a)                                                                                                                                                                                                                                                                                                         
|  
|   | (b)                                                                                                                                                                                                                                                                                                         
|  



|Electricity
          Distribution    |    |                       
|------------------------------------- | -- | ----------------------
|Standard
          Licence Conditions | 93 | September
        2001

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Condition 36. Basis of Charges for Distributor Metering and Data Services:Requirements for Transparency

|1. | The licensee shall as soon as practicable prepare statements in a form approved by the Authority setting out the basis upon which charges will be made for the provision of each of the
distributor metering and data services, in each case in such form and with such detail as shall be necessary to enable any person to make a reasonable estimate of the charges to which the person would become liable to pay for the provision of such
services and of the other terms, likely to have a material impact on the conduct of the persons business, upon which the service would be provided and (without prejudice to the foregoing) including the information set out in paragraph
2.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | The statements referred to at paragraph 1 shall include a schedule of charges for each of the distributor metering and data services, together with an explanation of the methods by which and the
principles on which such charges will be calculated.                                                                                                                                                                                                                                                                                                                                                                                                                                       
|  
|3. | The Authority may, upon the written request of the licensee, issue a direction relieving the licensee of its obligations under paragraph 1 to such extent and subject to such terms and conditions
as the Authority may specify in that direction.                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|4. | The licensee shall not in setting its charges for, or in setting the other terms that will apply to the provision of any of the distributor metering and data services, restrict, distort or
prevent competition in the generation, distribution or supply of electricity or in the provision of meter maintenance or data retrieval services.                                                                                                                                                                                                                                                                                                                                                
|  
|5. | The licensee:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  



|Electricity
          Distribution    |    |                       
|------------------------------------- | -- | ----------------------
|Standard
          Licence Conditions | 94 | September
        2001

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|   | (b)                                                                                                                                                                                                                                                                                                                          | may, with the approval of the Authority, from time to time alter the form of such statements.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------
|  
|6. | The licensee shall send a copy of the statement prepared in accordance with paragraph 1, and of each revision of such statement, to the Authority.                                                                                                                                                                          
|  
|7. | The licensee shall give or send a copy of the statement prepared in accordance with paragraph 1, or (as the case may be) of the latest revision of such statement, to any person who requests a
copy of such statement or statements.                                                                                       
|  
|8. | The licensee may make a charge for any statement given or sent pursuant to paragraph 7 of an amount which shall not exceed the amount specified in directions issued by the Authority for the
purposes of this condition based on the Authoritys estimate of the licensees reasonable costs of providing such a statement.
|  



|Electricity
          Distribution    |    |                       
|------------------------------------- | -- | ----------------------
|Standard
          Licence Conditions | 95 | September
        2001

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|Condition
      36A. Non-Discrimination in the Provision of Distributor Metering and Data
      Services
|--------------------------------------------------------------------------------------------------------
|                                                                                                        
|1.                                                                                                      
|                                                                                                        
|2.                                                                                                      



|Electricity
      Distribution    |    |                     
|--------------------------------- | -- | --------------------
|Standard
      Licence Conditions | 96 | September
      2001

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|Condition
      36B. Requirement to offer Terms for the Provision of Distributor Metering
      and Data Services
|-----------------------------------------------------------------------------------------------------------------
|                                                                                                                 
|1.                                                                                                               
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 
|2.                                                                                                               
|                                                                                                                 
|3.                                                                                                               
|                                                                                                                 
|4.                                                                                                               
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 



|Electricity
      Distribution    |    |                     
|--------------------------------- | -- | --------------------
|Standard
      Licence Conditions | 97 | September
      2001

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (ii)                                                                                                                                                                                          | to
      be set in conformity with the requirements of standard condition 36 (Basis
      of Charges for Distributor Metering and Data Services: Requirements for
      Transparency); and
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                               |                                                                                                                                                                                           
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                       | such
      other detailed terms in respect of each of the services required as are
      or may be appropriate for the purpose of the agreement.                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                               |                                                                                                                                                                                           
|5. | The
      licensee shall offer terms for agreements in accordance with paragraphs
      2 and 3 as soon as practicable and (save where the Authority consents to
      a longer period) in any event not more than 28 days after receipt by the
      licensee (or its agent) from any person of an application containing all
      such information as the licensee may reasonably require for the purpose
      of formulating the terms of the offer.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                               |                                                                                                                                                                                           
|6. | The
      licensee shall not be obliged pursuant to this condition to offer to enter
      or to enter into any agreement if to do so would be likely to involve the
      licensee being:                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                               |                                                                                                                                                                                           
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                       | in
      breach of its duties under section 9 of the Act;                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                               |                                                                                                                                                                                           
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                       | in
      breach of any regulations made under section 29 of the Act or of any other
      enactment relating to safety or standards applicable in respect of the distribution
      business;
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                               |                                                                                                                                                                                           
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                       | in
      breach of any Grid Code or Distribution Code; or                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                               |                                                                                                                                                                                           
|   | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                       | in
      breach of the conditions.                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                               |                                                                                                                                                                                           
|7. | The
      licensee shall undertake each of the services referred to in paragraph 1
      in the most efficient and economic manner practicable having regard to the
      alternatives available and the other requirements of the licence and of
      the Act in so far as they relate to the provision of those services.                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                               |                                                                                                                                                                                           
|8. | In
      the provision of any of the services referred to in paragraph 1 the licensee
      shall not restrict, distort or prevent competition in the supply of electricity.                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                               |                                                                                                                                                                                           
|9. | The
      services referred to in paragraph 1 shall collectively be referred to as
      the distributor metering and data services. For the avoidance of doubt distributor                                                                                                                                                                                                                                                                              



|Electricity
      Distribution    |    |                     
|--------------------------------- | -- | --------------------
|Standard
      Licence Conditions | 98 | September
      2001

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|    | metering
      and data services as referred to in this licence excludes data retrieval,
      data processing and data aggregation.
|--- | ------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                     
|10. | In
      this condition:                                                                                                            
|    |                                                                                                                                     
|    |                                                                                                                                     
|    |                                                                                                                                     
|    |                                                                                                                                     
|    |                                                                                                                                     
|    |                                                                                                                                     



|Electricity
      Distribution    |    |                     
|--------------------------------- | -- | --------------------
|Standard
      Licence Conditions | 99 | September
      2001

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|Condition
      36C. Functions of the Authority
|-----------------------------------------------
|                                               
|1.                                             
|                                               
|                                               
|                                               
|                                               
|                                               
|2.                                             
|                                               
|3.                                             



|Electricity
      Distribution    |     |                     
|--------------------------------- | --- | --------------------
|Standard
      Licence Conditions | 100 | September
      2001

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|4. | The Authority may (following consultation with the licensee) issue directions relieving the licensee of its obligations under standard condition 36B (Requirement to Offer Terms for the Provision
of Distributor Metering and Data Services) relating to distributor metering and data services in respect of such parts of that condition and to such extent as may be specified in the directions.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  



|Electricity
          Distribution    |     |                       
|------------------------------------- | --- | ----------------------
|Standard
          Licence Conditions | 101 | September
        2001

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AMENDMENTS TO
STANDARD CONDITION 37 BY THE OMISSION OF PARAGRAPHS 1 AND 2, THE ADDITION OF
NEW
PARAGRAPH 1 AND THE ALTERATION OF PARAGRAPHS 3, 4 AND 5 INCLUDING THEIR RENUMBERING TO

PARAGRAPHS 2, 3 AND 4 RESPECTIVELY

Condition
37. The Metering Point Administration Service and the Master Registration
Agreement

|1. | The Metering Point Administration Service shall, where so requested, fulfil within the distribution services area the functions set out in standard condition 14 (Provision of the
Metering Point Administration Service and Compliance with the Master Registration Agreement) in respect of all premises connected to another distribution system within the distribution services area.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | The licensee shall use its best endeavours, in conjunction and co- operation with all other distribution services providers, to prepare and maintain a form of agreement to be known as
the Master Registration Agreement.                                                                                                                                                                
|  
|3. | The Master Registration Agreement shall be an agreement made between:                                                                                                                                                                                                                                                                                                                     
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                       
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                       
|  

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|   |                                                   | (i)                                                                                                                                                                                                                                                                                                                                                           | all electricity suppliers (or their agents) which require the provision of metering point administration services from at least one licensed distributor; and
|-- | ------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   |                                                   | (ii)                                                                                                                                                                                                                                                                                                                                                          | such other persons as are, for settlement purposes, appropriate parties to the agreement.                                                                    
|  
|4. | The Master Registration Agreement shall comprise:
|  
|   | (a)                                               | terms for the provision of metering point administration services in accordance with the requirements of paragraph 3 of standard condition 14 (Provision of the Metering Point
Administration Service and Compliance with the Master Registration Agreement) and the equivalent requirements in the distribution licences of all other licensed distributors;
|  
|   | (b)                                               | provisions to facilitate, and procedures and practices to be followed by electricity suppliers in relation to changes of electricity supplier in respect of any premises;                                                                                                                                                                                    
|  
|   | (c)                                               | a catalogue of definitions, flows and forms of such data as may require to be transferred by or to parties to the Master Registration Agreement, or as between any persons
for                                                                                                                                                                               
|  

7

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| |     | settlement purposes or for any related purposes (the data transfer catalogue);                                                                                                                                                                        
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (d) | arrangements for the variation of the Master Registration Agreement following consultation with the parties, or representatives of the parties, to that agreement;                                                                                      
|
| | (e) | provisions (which shall require to be approved in advance by the Authority) by virtue of which the whole or specified parts of the Master Registration Agreement shall not be capable of
variation without the prior approval of the Authority; and     
|
| | (f) | such other matters as are or may be appropriate for the development, maintenance and operation of an efficient, co- ordinated and economical system for the supply of electricity and
for the purpose of facilitating competition in electricity supply.
|

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Condition 38. Establishment of a Data Transfer Service

|1. | The licensee shall use its best endeavours, in conjunction and co-operation with all other distribution services providers:                                                 
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (a)                                                                                                                                                                         
|  
|   | (b)                                                                                                                                                                         
|  
|2. | The data transfer service shall:                                                                                                                                            
|  
|   | (a)                                                                                                                                                                         
|  
|   | (b)                                                                                                                                                                         
|  
|   | (c)                                                                                                                                                                         
|  
|3. | The electronic data transfers specified at this paragraph are those which are reasonably required for any of the purposes set out at paragraph 4 and which are made between:
|  
|   | (a)                                                                                                                                                                         
|  
|   | (b)                                                                                                                                                                         
|  
|   | (c)                                                                                                                                                                         
|  



|Electricity
          Distribution    |     |                       
|------------------------------------- | --- | ----------------------
|Standard
          Licence Conditions | 105 | September
        2001

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|   | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                   | an electricity supplier (or any agent thereof) and another electricity supplier
    (or any agent thereof);                                                                                                           
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (e)                                                                                                                                                                                                                                                                                                                                                                                                                                                   | an electricity supplier and any of its agents;                                                                                                                                                                        
|  
|   | (f)                                                                                                                                                                                                                                                                                                                                                                                                                                                   | different agents of the same electricity supplier;                                                                                                                                                                    
|  
|   | (g)                                                                                                                                                                                                                                                                                                                                                                                                                                                   | electricity suppliers (or their agents) and generators (or their agents)
    which are parties to the Settlement Agreement for Scotland; and                                                                          
|  
|   | (h)                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Scottish Electricity Settlements Limited or its successor in title (or any
    agent thereof) and any person (or any agent thereof) who is a party to or
    complies with the Settlement Agreement for
Scotland.     
|  
|4. | The purposes of this paragraph are to:                                                                                                                                                                                                                                                                                                                                                                                                               
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                   | meet obligations with respect to the transfer of data for settlement purposes;                                                                                                                                        
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                   | communicate meter reading and meter standing data;                                                                                                                                                                    
|  
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                   | facilitate the provision of metering point administration services;                                                                                                                                                   
|  
|   | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                   | communicate distribution use of system information; and                                                                                                                                                               
|  
|   | (e)                                                                                                                                                                                                                                                                                                                                                                                                                                                   | fulfil such other requirements relating to the transfer of data as may be
    requisite for the supply of electricity to customers and compliance by electricity
    suppliers with the Master
Registration Agreement.
|  
|5. | The data transfer service shall, where relevant, transmit data in a form
    which complies with the provisions of the data transfer catalogue.                                                                                                                                                                                                                                                                                                      
|  
|6. | In fulfilling its obligations under paragraph 1 the licensee shall not, or
    (if appropriate) shall ensure that any third party acting on the licensees
    instruction or behalf shall not, restrict, distort or prevent competition
    in the provision of meters, meter maintenance, data retrieval, data processing,
    data aggregation or prepayment meter services and markets for any of the
    distributor metering and data services.
|  



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|--------------------------- | --- | --------------
|Standard Licence Conditions | 106 | September 2001

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|7. | Any
          obligation placed on the licensee under standard conditions 36A to
          36C in respect of the provision of the data transfer service shall
          (for the purposes of those conditions) be treated as a requirement
          on the licensee to use its best endeavours, in conjunction and co-operation
          with all other distribution services providers, to fulfil that obligation
          or to procure the fulfilment of that obligation by a third party, and
          standard conditions 36A to 36C shall applymutatis
          mutandisto
          the provision of data transfer services by the distribution services
          providers acting co-operatively and by means of procurement of third
          party services.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|8. | Further,
        in relation to the provision of data transfer services the reference
        at paragraph 1 of standard condition 36C (Functions of the Authority)
        to the licensee failing to enter into an agreement shall be a reference
        to the licensee, in conjunction with all other distribution services
        providers, failing to enter into, or failing to procure that a third
        party enters into, an agreement for the provision of those services.                                                                                                                                                                                                                                                                                   
|  
|9. | In
        this condition:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|  

| |  | Metering Point AdministrationService operator |  | means the licensee or
any other distributionservices provider in its
capacity as a provider ofmetering point administration services.
| |  | ----------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------

|Electricity Distribution    |     |               
|--------------------------- | --- | --------------
|Standard Licence Conditions | 107 | September 2001

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NOTICEUNDER STANDARD CONDITION 2(6)(B)OF THE ELECTRICITY DISTRIBUTION LICENCE: STANDARD CONDITIONS

Whereas

|(1) | United
	    Utilities Electricity plc (United Utilities) is the holder of a distribution licence (the licence)
    treated as granted by a scheme under paragraphs 13 and 17 of Schedule 7 to
    the Utilities Act 2000 which provides that Section C of the Standard Conditions
    should have effect.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(2) | Standard Condition 39 in Part II Section C of the Distribution Licence prohibits
        the disclosure of or authorisation of access to confidential information
        save in limited specified
circumstances.                                                                                           
|   
|(3) | Standard
	    Condition 40 in Part II Section C of the Distribution Licence requires
	    the licensee to appoint
    a competent person (who shall be known as the compliance officer)
    for the purpose of facilitating compliance by the licensee with the relevant
    duties.                       
|   
|(4) | Standard Condition 2(6)(b) in Part II Section A of the Distribution Licence
        provides that the Authority may, with the consent of the licensee, provide
        for Section C (or parts thereof) to cease
to have effect in the licence.                                                              
|   
|(5) | United Utilities have requested the Authority to issue a notice relieving
        them from its above mentioned obligations under Condition 39 and 40 of
        their Distribution Licences on the grounds that they no longer have a
        supply business.                                              
|   
|(6) | In response to the requests the Authority is satisfied that, having regard
        to the purpose of Standard Conditions 39 and 40 and to the principal
        objective and its general duties, it is appropriate to issue a notice
        in the manner hereinafter appearing.                           
|   

The Authority hereby gives notice, in accordance with paragraphs (6)(b) and 7 of Standard Condition 2, that Standard Conditions 39 and 40 of the licence shall cease to have effect from 1
April 2002.

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The Schedule

The existingstandard licence conditions 39 and 40 is omitted and
replaced by the following new standard licence conditions 39 and 40.

Condition 39. Restriction on use of certain information and independence of the Distribution Business

|1. | In this Condition and in Condition 40:                                                                                                                                                                                                                                                   
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | Confidential information means
information relating to, or derived from, the distribution business which is
not published or otherwise legitimately in the public domain;
and                                                                                                          
|  
|   | Relevant
supplier or shipper means the holder of an electricity or gas supply licence or a gas shippers
licence, which is
an affiliate or related undertaking of the licensee.                                                                                                        
|  
|2. | The Licensee shall put in place and at all times maintain managerial and
        operational systems which prevent any relevant supplier or shipper from
        having access to confidential information except and to the extent that
        such information:                       
|  
|   | a)                                                                                                                                                                                                                                                                                       
|  
|   | b)                                                                                                                                                                                                                                                                                       
|  
|   | c)                                                                                                                                                                                                                                                                                       
|  
|3. | The Licensee shall at all times manage and operate the Distribution Business
        in a way calculated to ensure that it does not restrict, prevent or distort
        competition in the supply of electricity or gas or the shipping of gas
        or the generation of electricity.
|  
|4. | Unless
	    otherwise directed by the Authority, the Licensee shall no later than
	    31 May 2002 have in place
    a statement (in this Condition the statement), approved by the                                                                                                    
|  

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|   | Authority, describing the practices, procedures and systems which the licensee
    has adopted (or intends to adopt) to secure compliance with paragraphs 2
    and 3.    
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|5. | Where the Authority does not indicate otherwise within 60 days of receipt
        of the statement, the statement shall be deemed to be approved by the
        Authority.
|  
|6. | The statement shall in particular (but without prejudice to the generality
        of paragraphs 2 and 3) set out how the Licensee shall:                                 
|  
|   | a)                                                                                                                                                                        
|  
|   | b)                                                                                                                                                                        
|  
|   | c)                                                                                                                                                                        
|  
|   |                                                                                                                                                                           
|  
|   |                                                                                                                                                                           
|  
|   |                                                                                                                                                                           
|  
|   |                                                                                                                                                                           
|  
|   |                                                                                                                                                                           
|  

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|   | d)                                                                                                                                                                                                                                        | manage the transfer of employees from the Distribution Business to any relevant
    supplier or shipper.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------
|  
|7. | The Licensee may, with the approval of the Authority, revise the statement
    prepared in accordance with paragraph 4.                                                                                                                  
|  
|8. | The Licensee shall take all reasonable measures to ensure compliance with
        the terms of the statement as from time to time revised by the Licensee
    and approved by the Authority.                                             
|  
|9. | The licensee shall publish
    a copy of the approved statement prepared in accordance with paragraph 4
    ( or the latest approved revision) on its companys website within fifteen
    working days
of its approval by the Authority.
|  



Condition 40. Appointment of Compliance Officer

|1. | The Licensee shall ensure,
    following consultation with the Authority that a competent person (who shall
    be known as the compliance officer) shall be appointed for the
    purpose of facilitating compliance by the Licensee with standard condition
    39, and, insofar as they relate to relationships with relevant suppliers
    and shippers, standard condition 41 and Paragraph
1 of
standard conditions 4A and 36A (together, the relevant duties).
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | The Licensee shall at all times ensure that the compliance officer is engaged
        for the performance of such duties and tasks as the Licensee considers
        it appropriate to assign to him for the purposes specified at paragraph
    1, which duties and tasks shall include those set out at paragraph 5.                                                                                                                                                   
|  
|3. | The Licensee shall procure that the compliance officer:                                                                                                                                                                                                                                                                                                                                                                                                                  
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|  

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|   | (b)                                                                                                                                                                                                                                                                                                | has such access to the licensees
    premises, systems, information and documentation                                                                                                                                                    
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | as, in each case, he might reasonably expect to require for the fulfilment of
    the duties and tasks assigned to him.                                                                                                                                                                           
|  
|4. | The Licensee shall make available to the compliance officer a copy of any
        complaint or representation received by it from any person in respect
        of a matter arising under or by virtue of those standard conditions and
    parts of standard conditions specified in paragraph 1.
|  
|5. | The duties and tasks assigned to the compliance officer shall include:                                                                                                                                                                                                                            
|  
|   | (a)                                                                                                                                                                                                                                                                                                | providing relevant advice and information to the Licensee for the purpose
    of facilitating its compliance with the relevant duties;                                                                                                    
|  
|   | (b)                                                                                                                                                                                                                                                                                                | monitoring the effectiveness of the practices, procedures and systems adopted
        by the Licensee in accordance with the statement referred to at paragraph
    4 of standard condition 39;                                           
|  
|   | (c)                                                                                                                                                                                                                                                                                                | advising whether, to the extent that the implementation of such practices,
        procedures and systems requires the co-operation of any other person,
        they are designed so as reasonably to admit of the
required co-operation;
|  
|   | (d)                                                                                                                                                                                                                                                                                                | investigating any complaint or representation made available to him in accordance
    with paragraph 4;                                                                                                                                   
|  
|   | (e)                                                                                                                                                                                                                                                                                                | recommending and advising upon the remedial action which any such investigation
    has demonstrated to be necessary or desirable;                                                                                                        
|  

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|   | (f)                                                                                                                                   | providing relevant advice and information to the Licensee for the purpose
    of ensuring its effective implementation of:                                                                                                                                                                              
|-- | ------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   |                                                                                                                                       | (i)                                                                                                                                                                                                                                                                                                     
|  
|   |                                                                                                                                       | (ii)                                                                                                                                                                                                                                                                                                    
|  
|   | (g)                                                                                                                                   | reporting annually to the directors of the Licensee - in respect of each
        year after this standard condition comes into force - as to his activities
        during the period covered by the report, including the fulfilment of
    the other duties and tasks assigned to him by the Licensee.
|  
|6. | As soon as is reasonably practicable following each annual report of the
    compliance officer, the Licensee shall produce a report:
|  
|   | (a)                                                                                                                                   | as to its compliance during the relevant year with the relevant duties; and                                                                                                                                                                                                                             
|  
|   | (b)                                                                                                                                   | as to its implementation of the practices, procedures and systems adopted
        in accordance with the statement referred to at paragraph 4 of standard
    condition 39.                                                                                                                             
|  
|7. | The report produced in accordance with paragraph 6 shall in particular:                                                              
|  
|   | (a)                                                                                                                                   | detail the activities of the compliance officer during the relevant year;                                                                                                                                                                                                                               
|  

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|   | (b)                                                                                                                                                       | refer to such other matters as are or may be appropriate in relation to the
        implementation of the practices, procedures and systems adopted in accordance
        with the statement referred to at paragraph 4 of standard condition 39;
    and
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (c)                                                                                                                                                       | set out the details of any investigations conducted by the
compliance officer, including:                                                                                                                                                                
|  
|   |                                                                                                                                                           | (i)                                                                                                                                                                                                                                                      
|  
|   |                                                                                                                                                           | (ii)                                                                                                                                                                                                                                                     
|  
|   |                                                                                                                                                           | (iii)                                                                                                                                                                                                                                                    
|  
|8. | The Licensee shall submit to the Authority a copy of the report produced
    in accordance with paragraph 6, and shall publish the report on its website.
|  

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Condition 41. Prohibition of Cross-Subsidies

|1. | The licensee shall procure that the distribution business shall not give
        any cross- subsidy to, or receive any cross-subsidy from, any other business
        of the licensee or of an affiliate or
related undertaking of the licensee.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Electricity Distribution    |     |                    
|--------------------------- | --- | -------------------
|Standard Licence Conditions | 117 | September
	    2001

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Condition
42. Regulatory Accounts

|1. | The following paragraphs of this condition apply for the purpose of ensuring
    that the licensee (and any affiliate or related undertaking) maintains accounting
    and reporting arrangements which enable regulatory accounts to be prepared
    for the consolidated distribution business and showing the financial affairs
    of the consolidated distribution business.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | Unless the Authority otherwise consents (such consent may be given in relation
    to some or all of the obligations in this condition and may be given subject
    to such conditions as the Authority considers appropriate), the licensee
    shall:                                                                                                                          
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                              
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                              
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                  
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                  
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                  
|  

|Electricity Distribution    |     |               
|--------------------------- | --- | --------------
|Standard Licence
Conditions | 118 | September 2001

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|    | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | the first six months of each financial year, an interim profit and loss account;
    and                                                                                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | each financial year, sufficient accounting information in respect of the
    consolidated distribution business to allow the preparation of consolidated
    accounting statements of the licensee or, where applicable, the ultimate
    controller. Such information shall include a profit and loss account, a statement
    of total recognised gains and losses, a balance sheet, and a cash flow statement
    together with notes thereto;
|   
|(c) | procure, in respect of the accounting statements prepared in accordance with
    this condition in respect of each financial year, a report by the auditors
    and addressed to the Authority stating whether in their opinion those statements
    have been properly prepared in accordance with this condition and give a
    true and fair view of the revenues, costs, assets, liabilities, reserves
    and provisions of, or reasonably attributable to, the consolidated distribution
    business to which the statements relate; and                                                                                                                                                                                          
|   
|(d) | deliver to the Authority a copy of the account referred to in sub-paragraph
    (b)(ii), the auditors report referred to in sub-paragraph (c), the
    accounting statements referred to in sub-paragraph (b)(i) and the accounting
    information referred to in sub-paragraph (b)(iii), as soon as reasonably
    practicable, and in any event not later than three months after the end of
    the period to which it relates in the case of the account referred to in
    sub-paragraph (b)(ii) and six months after the end of the financial year
    to which they relate in the case of the accounting statements, auditors report
    and accounting information referred to in sub-paragraphs (b)(i), (b)(iii)
    and
(c).
|   
|3.  | Unless
      the Authority so specifies in directions issued for the purposes of this
      condition, or with the Authoritys prior written approval, the licensee
      shall not in relation to the accounting statements in respect of a financial
      year change the bases of charge or apportionment or allocation referred
      to in sub-paragraph 2(b)(i) from those applied in respect of the previous
    financial year.                                                                                                                                                                                                                                                                                                 

|
|

|Electricity Distribution    |     |               
|--------------------------- | --- | --------------
|Standard Licence
Conditions | 119 | September 2001

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|4. | Where, in relation to the accounting statements in respect of a financial
    year, the licensee has changed such bases of charge or apportionment or allocation
    from those adopted for the immediately preceding financial year, the licensee
    shall, if so directed in directions issued by the Authority, in addition
    to preparing accounting statements on those bases which it has adopted, prepare
    such accounting statements on the bases which applied in respect of the immediately
    preceding financial year.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|5. | Accounting statements and information in respect of a financial year prepared
    under sub-paragraph 2(b)(i) and (b)(iii) shall, so far as reasonably practicable
    and unless otherwise approved by the Authority having regard to the purposes
    of this condition:                                                                                                                                                                                                                                                               
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|  
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|  
|6. | Unless the accounting statements and information prepared under sub-paragraph
    2(b)(i) and (b)(iii) are prepared on the current cost basis as provided by
    the alternative accounting rules, the licensee shall, unless otherwise agreed
    by the Authority, in addition to preparing those accounting statements under
    that paragraph, prepare accounting statements for the consolidated distribution
    business covering the same period, which shall
comprise and show separately:                                     
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|  

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | show or disclose the information and other matters required by the alternative accounting rules to be shown or disclosed in accounts where the amounts included in respect of assets covered by any items shown in those accounts have been determined on any basis mentioned in paragraph 31 of section C of Part II of Schedule 4 to the Companies Act 1985;
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|(b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | in respect of the consolidated distribution business the adjusted amount of any such provision for depreciation as is referred to in paragraph 32(2) of section C of Part II of Schedule 4 to the Companies Act 1985 and the items shown in the profit and loss account of the consolidated distribution business for the relevant period which are affected by the determination of amounts on the current cost basis as provided by the alternative accounting rules, including the profit (or loss) before taxation; and
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|(c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | such other current cost information as is referred to in the handbook as theAuthority may reasonably require;                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|and shall deliver the
same, together with an auditors report prepared in relation to thecurrent cost basis accounting statements in the form referred to in sub-paragraph 2(c), tothe Authority within the time limit referred to in sub-paragraph 2(d), and shall (with theexception of the part of such statements and information which shows separately theamounts charged, apportioned or allocated and describes the bases of charge orapportionment or allocation respectively) publish the same with the statutory accounts ofthe licensee.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|7.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | References in this condition to costs or liabilities of, or reasonably attributable
    to, the consolidated distribution business shall be construed as excluding
    taxation and capital liabilities which do not relate principally to the consolidated
    distribution business, and interest thereon; and references to any profit
    and loss account shall be construed accordingly.                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|8.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Without prejudice to paragraph 5 of the terms of this licence, references
    in this condition to sections of the Companies Act 1985 are references to
    those provisions as amended, substituted or inserted by the relevant provisions
    of the Companies Act 1989 and if such                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

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| | provisions of the Companies Act 1989 are not in force at the date of
        grant of this licence shall be construed as if such provisions were in
        force at such date.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                

|9   | For the purposes of paragraph 6:        
|--- | ----------------------------------------
|    |                                         
|    | alternative
 accounting rules         
|    |                                         
|    | current cost
 assets                  
|    |                                         
|    | the handbook                          
|    |                                         
|10. | For
    the purposes of this condition: 
|    |                                         
|    | consolidated
    distribution business
|    |                                         

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| |  |                           | 1 (Definitions
    and Interpretation).                                                                   
| |  | ------------------------- | ----------------------------------------------------------------------------------------------------------
| |  |                           |                                                                                                           
| |  | regulatory
    accounts | means
          the accounts required to be prepared by
          the licensee pursuant
to this condition.





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          Distribution    |     |                       
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          Licence Conditions | 123 | September
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Condition
42A. Change of Financial Year

|1. | The definition of financial
    year in
    standard condition 1 (Definitions and Interpretation)
    shall, for the purpose only of the statutory accounts of the licensee, cease
    to apply to the licensee from the date the licensee sends a notice to the
    Authority for that
purpose.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | Such notice:                                                                                                                                                                                                                                                                                      
|  
|   | (a)                                                                                                                                                                                                                                                                                               
|  
|   | (b)                                                                                                                                                                                                                                                                                               
|  
|3. | While the notice continues in effect the licensee shall procure the preparation
    of and shall deliver to the Authority audited group accounts for its group
    of companies for each financial
year.                                                                                          
|  
|4. | Audited group accounts produced in accordance with paragraph 3:                                                                                                                                                                                                                                   
|  
|   | (a)                                                                                                                                                                                                                                                                                               
|  
|   | (b)                                                                                                                                                                                                                                                                                               
|  
|   | (c)                                                                                                                                                                                                                                                                                               
|  



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          Licence Conditions | 124 | September
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|   | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | may, with the prior written consent of the Authority, omit or provide in
    a different form, specified in the consent, such information as may be specified
    in the consent; and                                                    
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | shall clearly disclose any differences between the accounting policies underlying
    the preparation of the statutory accounts of the licensee and the accounting
    policies underlying the preparation
of the audited group accounts.
|  
|5. | The licensee may, for the purpose only of its statutory accounts, change
    its financial year from that previously notified by sending to the Authority
    a new notice pursuant to paragraph 1. Where the licensee sends the Authority
    a new notice the previous notice shall be revoked, as provided by sub-paragraph
    2(b). The licensees financial year- end will change with effect from
    the date specified in the new notice. The new notice shall
specify the licensees new financial year-end.
|  
|6. | No provisions of this condition shall apply to the financial year of the licensee as defined in standard condition 1 (Definitions and Interpretation) for the purpose of accounts produced in
compliance with standard condition 42 (Regulatory Accounts).    No provisions of this
    condition shall affect the licensees obligations in respect of payment
    of licence fees under standard condition 3 (Payments by the Licensee to the
    Authority).                                                       



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          Licence Conditions | 125 | September
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Condition 43. Restriction on Activity and Financial Ring Fencing

|1. | Save as provided by paragraphs 3 and 4, the licensee shall not conduct any
    business or carry on any activity other than the distribution business.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | The licensee shall not without the prior written consent of the Authority
    hold or acquire shares or other investments of any kind except:         
|  
|   | (a)                                                                                                                                                   
|  
|   | (b)                                                                                                                                                   
|  
|   | (c)                                                                                                                                                   
|  
|3. | Subject to the provisions of paragraph 2 nothing in this condition shall
    prevent:                                                                 
|  
|   | (a)                                                                                                                                                   
|  
|   | (b)                                                                                                                                                   
|  
|   | (c)                                                                                                                                                   
|  
|   | (d)                                                                                                                                                   



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          Licence Conditions | 126 | September
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|4. | Nothing in this condition shall prevent the licensee or an affiliate or related
    undertaking of the licensee in which the licensee holds shares or other investments
    (a relevant
associate) conducting de-minimis business as defined in this paragraph
so long as the limitations specified in this paragraph are complied with.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                       
|  
|   |                                                                                                                                                                                                                                                                                                                                           
|  
|   |                                                                                                                                                                                                                                                                                                                                           
|  

| | (b) | The
        licensee or a relevant associate may carry on de-minimis business provided
        that the relevant associate carries on no other business except activities
        of the distribution business and business activities authorised by the
        Authority under paragraph 3(d), and neither of the following limitations
    is exceeded, namely:
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |     | (i)                                                                                                                                                                                                                                                                                                                                                               
|
| |     | (ii)                                                                                                                                                                                                                                                                                                                                                              
|
| | (c) | For
        the purpose of sub-paragraph (b) of this paragraph, investment means
        any form of financial support or assistance given by or on behalf of
    the                                                                                                                                                                                           



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          Distribution    |     |                       
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          Licence Conditions | 127 | September
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| |     | licensee or a relevant associate for the de-minimis business whether on a temporary
or permanent basis including (without limiting the generality of the foregoing)
any commitment to provide any
such support or assistance in the future.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (d) | At any relevant time, the amount of an investment shall be the sum of:                                                                                                                                                                     
|
| |     | (i)                                                                                                                                                                                                                                        
|
| |     | (ii)                                                                                                                                                                                                                                       
|
| |     | (iii)                                                                                                                                                                                                                                      
|



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          Distribution    |     |                       
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          Licence Conditions | 128 | September
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Condition 44. Availability of Resources

|1. | The
          licensee shall at all times act in a manner calculated to secure that
          it has available to it all such resources, including (without limitation)
          management and financial resources, personnel, fixed and moveable assets,
          rights, licences, consents and facilities on such terms and with all
          such rights as shall ensure that
it is at all times able:
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                               
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                               
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                               
|2. | The
        licensee shall submit a certificate to the Authority, approved by a resolution
        of the board of directors of the licensee and signed by a director of
        the licensee pursuant to that resolution. Such certificate shall be submitted
        in June of each year. Each certificate shall be in one of the following
    forms:                                                     
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                               
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                           
|  



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|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                              | In the opinion of the directors of the licensee, the licensee will
    not have available to it sufficient financial resources and financial facilities
    to enable the licensee to carry on the distribution business for a period
    of 12 months from the date of this certificate.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|3. | The licensee shall submit to the Authority with that certificate a statement
    of the main factors which the directors of the licensee have taken into account
    in giving that
certificate.                                                                                                                                                                                                                                                                
|  
|4. | The licensee shall inform the Authority in writing immediately if the directors
    of the licensee become aware of any circumstance which causes them no longer
    to have the reasonable expectation expressed in the then most recent certificate
    given under paragraph 2.                                                                                                                                                                              
|  
|5. | The licensee shall use its best endeavours to obtain and submit to the Authority
    with each certificate provided for in paragraph 2 a report prepared by its
    auditors and addressed to the Authority stating whether or not the auditors
    are aware of any inconsistencies between, on the one hand, that certificate
    and the statement submitted with it and, on the other hand, any information
    which they obtained during their audit
work.
|  
|6. | The directors of the licensee shall not declare or recommend a dividend,
    nor shall the licensee make any other form of distribution within the meaning
    of section 263 of the Companies Act 1985, unless prior to the declaration,
    recommendation or making of the distribution (as the case may be) the licensee
    shall have issued to the Authority a certificate complying with the following
    requirements of this paragraph.              
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                              | The certificate shall be in the following form:                                                                                                                                                                                                                                            
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | After making enquiries,
the directors of the licensee are satisfied:                                                                                                                                                                                                                      
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | (i)                                                                                                                                                                                                                                                                                        
|  



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          Licence Conditions | 130 | September
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| |     |                                                                                                                                                                                                                                                                                                  | Controller),
    standard condition 46 (Credit Rating) and paragraph 1 of standard condition
    47 ( Indebtedness) of the licence; and                                                                                                                                                      
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |     | (ii)                                                                                                                                                                                                                                                                                             | that the making of a distribution of [ ] on [ ] will not, either alone or
    when taken together with other circumstances reasonably foreseeable at the
    date of this certificate, cause the licensee to be in breach to a material
    extent of any of these obligations in the future.
|
| | (b) | The certificate shall be signed by a director of the licensee and approved
    by a resolution of the board of directors of the licensee passed not more
    than 14 days before the date on which the declaration, recommendation or
    payment will be made.                                 
|
| | (c) | Where the certificate has been issued in respect of the declaration or recommendation
    of a dividend, the licensee shall be under no obligation to issue a further
    certificate prior to payment of that dividend provided such payment is made
    within six months of that certificate.
|



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          Distribution    |     |                       
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          Licence Conditions | 131 | September
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Condition 45. Undertaking from Ultimate Controller

|1. | The licensee shall procure from each company or other person which the licensee
    knows or reasonably should know is at any time an ultimate controller of
    the licensee a legally enforceable undertaking in favour of the licensee
    in the form specified by the Authority that that ultimate controller (the
    covenantor) will refrain from any action, and will procure that any
    person (including, without limitation, a corporate body) which is a subsidiary
    of, or is controlled by, the covenantor (other than the licensee and its
    subsidiaries) will refrain from any action, which would then be likely to
    cause the licensee to breach any of its obligations under the Act or this
    licence. Such undertaking shall be obtained within 7 days of the company
    or other person in question becoming an ultimate controller and shall remain
    in force for as long as the licensee remains the holder of this licence and
    the covenantor remains
an ultimate controller of the licensee.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | The licensee shall:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   | and shall not, save with the consent in writing of the Authority, enter (directly
or indirectly) into any agreement or arrangement with any ultimate controller
of the licensee or of any of the subsidiaries of any such corporate ultimate
controller (other than the subsidiaries of the licensee) at a time when,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               



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          Licence Conditions | 132 | September
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|(iii) | the
        licensee is in breach of the terms of any direction issued by the Authority
      under paragraph 2 of this condition.
|----- | ----------------------------------------------------------------------------------------------------------------------------------



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      Distribution    |     |                   
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      Licence Conditions | 133 | September
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|Condition
      46. Credit Rating of Licensee
|---------------------------------------------
|                                             
|1.                                           
|                                             
|2.                                           
|                                             
|                                             
|                                             
|                                             
|                                             
|                                             



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      Licence Conditions | 134 | September
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|Condition
      47. Indebtedness
|--------------------------------
|                                
|1.                              
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                
|                                



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      Licence Conditions | 135 | September
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| |     | (vii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | an
        acquisition of shares or other investments in conformity with paragraph
        2 of standard condition 43 (Restriction on Activity and Financial Ring
        Fencing) made on an arms length basis and on normal commercial
        terms;                                            
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                     
| | (c) | enter
        into an agreement or incur a commitment incorporating a cross-default
      obligation; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                     
| | (d) | continue
        or permit to remain in effect any agreement or commitment incorporating
        a cross-default obligation subsisting at the date this condition takes
        effect in this licence, save that the licensee may permit any cross-default
        obligation in existence at that date to remain in effect for a period
        not exceeding twelve months from that date, provided that the cross-default
        obligation is solely referable to an instrument relating to the provision
        of a loan or other financial facilities granted prior to that date and
        the terms on which those facilities have been made available as subsisting
      on that date are not varied or otherwise made more onerous.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                     
| | (e) | the
        provisions of sub-paragraphs (c) and (d) of this paragraph shall not
        prevent the licensee from giving any guarantee permitted by and compliant
      with the requirements of sub-paragraph (a).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                     
| | (f) | The
        payment condition referred to in sub-paragraph (b)(iv) is that the consideration
        due in respect of the transaction in question is paid in full when the
      transaction is entered into unless either:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                     
| |     | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | the
        counter-party to the transaction has and maintains until payment is made
      in full an investment grade issuer credit rating, or                                                                                                                                                     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                     
| |     | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | the
        obligations of the counter-party to the transaction are fully and unconditionally
        guaranteed throughout the period during which any part of the consideration
        remains outstanding by a guarantor which has and maintains an investment
      grade issuer credit rating.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                     

|2 | In
      this condition: |                                 
|- | ------------------------ | --------------------------------
|  |                          |                                 
|  |                          | cross-default
      obligation



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      Licence Conditions | 136 | September
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| |  |                | any debt or other sum arises or is increased or accelerated or is capable
        of arising, increasing or of acceleration by reason of a default (howsoever
        such default may be described or defined) by any person other than the
        licensee, unless:                                                                               
| |  | -------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                |                                                                                                                                                                                                                                                                                                                                                      
| |  |                | (i)                                                                                                                                                                                                                                                                                                                                                  
| |  |                |                                                                                                                                                                                                                                                                                                                                                      
| |  |                | (ii)                                                                                                                                                                                                                                                                                                                                                 
| |  |                |                                                                                                                                                                                                                                                                                                                                                      
| |  |                | (iii)                                                                                                                                                                                                                                                                                                                                                
| |  |                |                                                                                                                                                                                                                                                                                                                                                      
| |  | indebtedness | means
        all liabilities now or hereafter due,owing
        or incurred, whether actual orcontingent,
      whether solely or jointly with anyother
      person and whether as principal orsurety,
      together with any interest accruingthereon
      and all costs, charges, penalties andexpenses
      incurred in connection therewith.



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      Licence Conditions | 137 | September
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Condition 48. Last Resort Supply: Payment Claims

|1. | This condition sets out the circumstances in which the licensee shall increase
    its use of system charges in order to compensate any electricity supplier
    (a claimant) which claims for losses that it has incurred in
    complying with a last resort supply direction.                                                                                                                
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | The following provisions apply where the licensee receives from a claimant
    a valid claim for a last resort supply payment.                                                                                                                                                                                                                                                                    
|  
|3. | Where the licensee receives a valid claim it shall, during the relevant year,
    make a consequential increase to its use of system charges in respect of
    that year which relate to the distribution of electricity to premises to
    such an extent as it reasonably estimates to be appropriate to secure that
    such consequential increase in its revenue equals the specified amount.
|  
|3. | The licensee shall, during, or as soon as practicable after the end of, the
    relevant year, pay to the claimant, by quarterly or monthly instalments (as
    specified in the claim), the amount of that consequential increase in revenue
    mentioned in paragraph 3 to the extent that it does not exceed the specified
    amount.                                                        
|  
|4. | If the amount paid to the claimant under paragraph 4 is less than the specified
    amount, the licensee shall in the following year                                                                                                                                                                                                                                                             
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                               
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                               
|  



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|5.  | If the amount of the consequential increase mentioned in paragraph 3 exceeds the specified amount, the licensee shall, during the year following the relevant year, decrease the charges which
relate to the distribution of electricity to premises to the extent that it reasonably estimates to be necessary in order to reduce its use of system revenue for that year by an amount equal to the excess together with    12months interest
thereon.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|6.  | Any question whether any estimate for the purposes of paragraph 3, 5 or 6
    is a reasonable one shall be determined by the Authority.                                                                                                                                                                                                                                                                                                                 
|   
|7.  | The licensee shall not enter into any use of system agreement with an electricity
    supplier which does not permit variation of its use of system charges in
    pursuance of this
condition.                                                                                                                                                                                                                                                         
|   
|8.  | The provisions of this condition shall have effect notwithstanding that the
    licensee has not provided the notice required by paragraph 13 of standard
    condition 4 (Basis of Charges for Use of System and Connection to System:
    Requirements for Transparency).                                                                                                                                                                             
|   
|9.  | In calculating the licensees use of system revenue during any period
    for the purposes of a price control condition any increase or decrease in
    revenue attributable to the licensees compliance with this condition
    shall be treated as if it had not occurred.                                                                                                                                                                           
|   
|11. | The licensee shall prepare, in respect of each year in which it increases
    or decreases charges in pursuance of paragraph 3, 5 or 6, a statement showing
    -                                                                                                                                                                                                                                                                                       
|   
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   



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| | (d) | in the case of each last resort supply payment, the aggregate payments to
    the claimant made in respect of the year in question (whenever those payments
    were made).
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|

|12. | The licensee shall give the statements referred to in paragraph 11 to the
    Authority within the first 4 months of the year following that to which they
    relate.                                                                                                                                                                                           
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|13. | On giving the statement mentioned in paragraph 11(d) to the Authority, the
    licensee shall publish it in such manner as, in the reasonable opinion of
    the licensee, will secure adequate publicity
for it.                                                                                                                                                
|   
|14. | Where the licensee receives more than one claim for a last resort payment,
    this condition (other than sub-paragraphs 11(a), (b) and (c)) shall apply
    separately as respects each separate claim but in so far as it results in
    changes to the licensees use of system charges it shall have the cumulative
    effect of such separate applications.
|   
|15. | (a) For the purposes of this condition                                                                                                                                                                                                                                                                                                                          
|   
|    | last
      resort supply direction and last resort supply payment have,
      respectively the meanings given to them in standard conditions 29 (Supplier
      of Last Resort) and 29A (Supplier of Last Resort Supply Payments) of the
    standard conditions of the electricity supply licence;                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                  
|    | price
    control condition means any condition of the licence which places a
    monetary limitation on the use of system charges which may be levied or the
    use of system revenue which may be recovered by the licensee during a given
    period; relevant year means, in relation to any valid claim -                                              
|   
|    | (a)                                                                                                                                                                                                                                                                                                                                                              
|   
|    | (b)                                                                                                                                                                                                                                                                                                                                                              
|   



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| | specified
          amount means the amount specified on a valid claim together withinterest
          calculated in accordance with sub-paragraph (b);                                                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                
| | valid
          claim means a claim for which a claimant has been give a consent
          by the Authority pursuant to standard condition 29A (Supplier of Last
          Resort Supply Payments) of the standard conditions of the electricity
          supply licence; andyear means
    a period of 12 months beginning with 1stApril.
| |                                                                                                                                                                                                                                                                                                                                                
| | (b)                                                                                                                                                                                                                                                                                                                                            



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Condition 49. Incentive Scheme and Associated Information

|1. | The
        principal purpose of this condition is to secure the collection of information
        on a common basis, and to an appropriate degree of accuracy, by each
        distribution services provider so as:                                                                                               
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (a)                                                                                                                                                                                                                                                                                                                 
|  
|   | (b)                                                                                                                                                                                                                                                                                                                 
|  
|2. | The
        licensee shall establish appropriate systems, processes and procedures
        to measure and record specified information from the dates specified
        in paragraph 4 and in accordance with Regulatory Instructions and Guidance
        (including any associated information specified therein).
|  
|3. | For
        the purposes of this condition:                                                                                                                                                                                                                                                                         
|  
|   | "charge
        restriction conditions shall have the same meaning as in special
        condition A (Definitions) for licensed distributors in England and Wales
        or special condition B for licensed distributors in Scotland;                                                                            
|  
|   | charging
        review date means the date from which modifications to the charge
        restriction conditions relating to all distribution services providers
        have effect:                                                                                                                            
|  
|   | (a)                                                                                                                                                                                                                                                                                                                 
|  



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| | (b)                                                                                                                                                                                                                      | whether
    or not the same modifications are made in respect of each distribution
    services provider; and                                                                                                                                        
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                      
| | (c)                                                                                                                                                                                                                      | where
    such modifications have been proposed by the Authority following a  review
    by the Authority of the charge restriction conditions (or that part towhich
    the modifications relate) in relation to all distribution servicesproviders;
| |                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                      
| | Regulatory
          Instructions
and Guidance means
any instructions and guidanceissued
by the Authority
for the purposes of this condition as modified from timeto
time by notice under paragraph 9 and may include:
| |                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                      
| | (a)                                                                                                                                                                                                                      | instructions
    and guidance as to the establishment of different systems,processes,
    procedures and manners for providing and recording information
    and of standards for different classes of information;                                  
| |                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                      
| | (b)                                                                                                                                                                                                                      | a
    timetable for the development of the systems, processes and procedures  required
    to achieve the appropriate standards of accuracy and reliabilitywith
    which specified information shall be recorded;                                   
| |                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                      
| | (c)                                                                                                                                                                                                                      | the
    meaning of words and phrases used in defining specified information;                                                                                                                                                                         
| |                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                      
| | (d)                                                                                                                                                                                                                      | requirements
        for the recording of information associated with specified information
        which are reasonably necessary to enable an examiner to determine the
    accuracy and reliability of specified information;                     
| |                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                      
| | (e)                                                                                                                                                                                                                      | requirements
    as to the form and manner in which specified informationshall
    be provided to the Authority;                                                                                                                                     



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| | (f)                                | requirements as to the manner in which specified information shall be recorded and as to the standards of accuracy and reliability with which it shall be recorded; and                                                           
| | ---------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                    |                                                                                                                                                                                                                                   
| | (g)                                | a statement as to whether and to what extent each category of specifiedinformation
    is required for the purposes of the scheme;                                                                                                
| |                                    |                                                                                                                                                                                                                                   
| | specified
    information means:
| |                                    |                                                                                                                                                                                                                                   
| | (a)                                | the
       number of interruptions in the supply of electricity through the licensees
       distribution system which occur in each period of 12 months commencing
    on 1 April in each calendar year and have a duration of 
| |                                    |                                                                                                                                                                                                                                   
| |                                    | (i)                                                                                                                                                                                                                               
| |                                    |                                                                                                                                                                                                                                   
| |                                    | (ii)                                                                                                                                                                                                                              
| |                                    |                                                                                                                                                                                                                                   
| | (aa)                               | the number of customers whose supply of electricity wasinterrupted
    and the duration of the interruption;                                                                                                                      
| |                                    |                                                                                                                                                                                                                                   
| | (bb)                               | the source, voltage level and HV circuit; and                                                                                                                                                                                     
| |                                    |                                                                                                                                                                                                                                   
| | (cc)                               | the aggregate number of re-interruptions;                                                                                                                                                                                         
| |                                    |                                                                                                                                                                                                                                   
| | (b)                                | in
       relation to telephone calls made to the enquiry service operated under
       paragraph 1 of standard condition 6 (Safety and Security of Supplies Enquiry
    Service)                                                
| |                                    |                                                                                                                                                                                                                                   
| |                                    | (i)                                                                                                                                                                                                                               
| |                                    |                                                                                                                                                                                                                                   
| |                                    | (ii)                                                                                                                                                                                                                              
| |                                    |                                                                                                                                                                                                                                   
| | (aa)                               | the telephone number of the caller;                                                                                                                                                                                               



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|   |                                                                 |                                                                                                                                                  | (bb)                                                                                                                                                                                                                    | the time
    of the call; and                                                                   
|-- | --------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------
|  
|   |                                                                 |                                                                                                                                                  | (cc)                                                                                                                                                                                                                    | if
    known, the name of the caller and whether the caller is or isnot
    a domestic customer;
|  
|   | (c)                                                             | (i)                                                                                                                                              | the aggregate number and cause of faults occurring in specified classes or
    types of electrical plant or electric lines:                                                                                            
|  
|   |                                                                 | (ii)                                                                                                                                             | a
    statement setting out the asset management strategy of the licensee in respect
    of the licensees distribution system; and                                                                                    
|  
|   |                                                                 | (iii)                                                                                                                                            | a
    statement of the reasons for any material increase or decrease in the number
    and cause of faults referred to in sub-paragraph (i) having regard to equivalent
    data held in respect of previous
years; and
|  
|   | (d)                                                             | such
    other information as may from time to time be specified by the Authority,
    by notice to the licensee in accordance with paragraph 9.
|  
|4. | The licensee shall collect specified information in respect of:
|  
|   |                                                                 | (a)                                                                                                                                              | the matters specified in sub-paragraphs (a), (b) and (c) of the definition
    of specified information from and including 1 April 2001; and                                                                           
|  
|   |                                                                 | (b)                                                                                                                                              | any
	    matter specified under sub-paragraph (d) of that definition from the date
    specified in a notice given in accordance with paragraph 9.                                                                     
|  
|5. | The licensee shall provide to the Authority:                   
|  
|   |                                                                 | (a)                                                                                                                                              | the information referred to in sub-paragraph (b)(ii) of the definition of
    specified information for each week within 4 days of the end of that week;                                                               



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|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                             | the information referred to in sub-paragraphs (a),(b)(i) and (c) of that
    definition on or before 31 May 2002 and 30 April in each succeeding year
    (or such later date as the Authority may by notice specify) in respect of
    the period of 12 months expiring on the preceding 31 March; and
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                             | the information
	    referred to in sub-paragraph (d) of that definition in respect of such period
	    and by such date as shall be specified in the relevant notice given under
	    that
sub-paragraph.                                                                                             
|  
|6. | The licensee shall permit a person or persons nominated by the Authority
    (in each case an examiner) to examine the systems, processes
    and procedures referred to in paragraph 2 and their operation, the specified
    information and the extent to which each complies, and is in accordance,
    with Regulatory Instructions and Guidance.                                                                                       
|  
|7. | The licensee shall (and shall procure, insofar as it is able to do so, that
    any affiliate of the licensee, any person by whom it procures the performance
    of the obligation in paragraph 2 and any auditor of such person or of the
    licensee shall) co-operate fully with an examiner so as to enable him to
    carry out, complete and report to the Authority on any examination carried
    out in accordance with paragraph 6.
|  
|8. | The licensees obligation under paragraph 7 to co-operate or procure
    co-operation with an examiner shall include, without limitation and insofar
    as necessary or expedient for such purpose, in each case subject to reasonable
    prior notice to the licensee:                                                                                                                                                                      
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                             | providing access to management, employees, agents or independent contractors
    of the licensee sufficient to enable the examiner to make any enquiries and
    to discuss any matters which he reasonably considers to be relevant to the
    carrying out of the examination;                       



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|   | (b)                                                                                                                                                                                                                                | giving to the examiner access at reasonable hours to any premises occupied
    by the licensee or any other person in performing the obligations set out
    in this condition; and
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (c)                                                                                                                                                                                                                                | allowing the examiner at reasonable hours:                                                                                                                                         
|  
|   |                                                                                                                                                                                                                                    | (i)                                                                                                                                                                                
|  
|   |                                                                                                                                                                                                                                    | (ii)                                                                                                                                                                               
|  
|   |                                                                                                                                                                                                                                    | (iii)                                                                                                                                                                              
|  
|9. | A notice published by the Authority which adds to the categories of specified
    information or which modifies Regulatory Instructions and Guidance (in each
    case, an amendment) shall
have effect where the Authority has:
|  
|   | (a)                                                                                                                                                                                                                                | given prior notice to all distribution services providers:                                                                                                                         
|  
|   |                                                                                                                                                                                                                                    | (i)                                                                                                                                                                                
|   |                                                                                                                                                                                                                                    |                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                    | (ii)                                                                                                                                                                               



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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | (iii)                                                                                   | specifying the time (not being less
        than 28 days from the date of publication of the notice) within which
        representations or objections with respect to the proposed amendment
        may be made;
and
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                         |                                                                                                                                                                                                                        
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | considered any representations
    or objections which are duly made and not withdrawn.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                         |                                                                                                                                                                                                                        
|10. | A notice under paragraph
        9 may not, where the amendment relates to a requirement in Regulatory
        Instructions and Guidance to provide any specified information to a greater
        level of accuracy or the introduction of an additional category of specified
        information which is or is intended to be required for the purposes of
        the scheme, specify a date for the purpose of paragraph 9(a)(i) other
        than a charging review date nor be given less than 12 months prior to
        that date unless all distribution services providers have agreed an alternative
    date or period of notice.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                         |                                                                                                                                                                                                                        
|11. | The
    reasons for proposing an amendment which relates to any change in Regulatory
    Instructions and Guidance (other than that referred to in paragraph 10) in
    respect of specified information which is or is intended to be required for
    the purposes of the scheme may have regard in particular to the desirability
    of:                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                         |                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | (i)                                                                                     | removing or reducing inconsistencies
        between distribution services providers in the application of the Regulatory
    Instructions and Guidance or its interpretation;                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                         |                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | (ii)                                                                                    | improving the presentation or style
        of the Regulatory Instructions and Guidance or of the form and manner
    in which the specified information is to be provided;                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                         |                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | (iii)                                                                                   | summarising the terms of reference
    and instructions from time to time given to an examiner; or                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                         |                                                                                                                                                                                                                        

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| |  | (iv)                                                                  | setting out any of the matters
    referred to in paragraphs (a) to (f) ofthe
    definition of Regulatory Instructions and Guidance in respect ofany
    additional category of specified information
| |  | --------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                                                       |                                                                                                                                                                                                       
| |  | so as more effectively
    to achieve the purposes of this condition.
| |  |                                                                       |                                                                                                                                                                                                       

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Department of Trade and Industry

September 2001

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          Distribution    |     |               
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          Licence Conditions | 149 | September 2001

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