Exhibit 4.3

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SCHEDULE

TO BE INSERTED
  IN SECTION A

|Standard
      Condition 1. Definitions and Interpretation
|----------------------------------------------------------
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|1.                                                        
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| |  |                                        |  | transferring
      electricity to or from or across an interconnector or Scottish interconnection
      orwho 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.                                                                                                              
| |  |                                        |  |                                                                                                                                                                                                                                 
| |  | basic
      meter asset provision    |  | for
      the purposes of Section C only, has the meaning given in paragraph 3(a)
      of standard condition 36 (Requirement to Offer Terms for the Provision of
      Basic Metering Services).                               
| |  |                                        |  |                                                                                                                                                                                                                                 
| |  | basic
      meter operation          |  | for
      the purposes of Section C only, has the meaning given in paragraph 3(b)
      of standard condition 36 (Requirement to Offer Terms for the Provision of
      Basic Metering Services).                               
| |  |                                        |  |                                                                                                                                                                                                                                 
| |  | BETTA                                |  | means
      the British electricity trading and transmission arrangements, being those
      arrangements which are provided for in Chapter 1 of Part 3 of the Energy
      Act 2004.                                           
| |  |                                        |  |                                                                                                                                                                                                                                 
| |  | BETTA
      go-live date             |  | means the date which the Secretary of State indicates in a direction shall
      be the BETTA go-live date.                                                                                                                     
| |  |                                        |  |                                                                                                                                                                                                                                 
| |  | British
      Grid Systems Agreement |  | for
      the purposes of standard condition 30B (BETTA Run-off Arrangements Scheme)
      only, has the meaning given in that condition.                                                                                       
| |  |                                        |  |                                                                                                                                                                                                                                 
| |  | BSC                                  |  | for the purposes of Section B only, has the meaning given in standard condition
      10 (Balancing and 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  |  | has the same
        meaning as in special condition A1 (Definitions and interpretation).                                                                                                                                       
| |  |                                        |  |                                                                                                                                                                                                                                 
| |  | competent
      authority            |  | for
      the purposes of standard condition 39 (Restriction on Use of Certain Information
      and Independence of the Distribution Business)                                                                                 

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| |  |                                        |  | 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.                                                                                                                                                                                                                                                                                                   
| |  |                                        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | connection
      charges             |  | means
      charges made or levied, or to be made or levied, by the licensee for the
      provision of connections or the modification or retention of existing connections
      to the licensees distribution system at entry or exit points, whether
      or not such charges or any part of them are annualised, and may include,
      as appropriate, costs relating to any of the matters that are mentioned
      in paragraph 5 of standard condition 4B (Connection Charging Methodology).
| |  |                                        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | connection
      chargingmethodology |  | means the principles on which and the methods by which, for the purposes
      of achieving the objectives referred to in paragraph 3 of standard condition
      4B(Connection
      Charging Methodology), connection charges are determined.                                                                                                                                                                                                                                                        
| |  |                                        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | 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 established under section
      2 of the Utilities Act 2000.                                                                                                                                                                                                                                                                                                                                                                                            
| |  |                                        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | convenience
      customers          |  | means customers supplied or requiring to be supplied at any premises which
      are directly connected to the licensees distribution system but are
      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 NETAImplementation)
      and 11 (Change Coordination 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) and standard condition
      BA6 (Indebtedness) only, has the meaning given in                                                                                                                                                                                                                                                                                                                                                                

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| |  |                                  |  | 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                       |  | for
      the purposes of standard condition 49 (Quality of Service Incentive Scheme
      and Associated Information) and special condition C2 (Calculation of the
      charge restriction adjustments arising from performance in respect of quality
      of service) only, has the meaning given in the quality of service rigs,
| |  |                                  |  |                                                                                                                                                                                                                                                                                                                                      
| |  |                                  |  | otherwise,                                                                                                                                                                                                                                                                                                                           
| |  |                                  |  |                                                                                                                                                                                                                                                                                                                                      
| |  |                                  |  | means any person supplied or requiring to be supplied with electricity at
      any premises in Great Britain, but does not include any authorised electricity
      operator in its capacity as such.                                                                                                                               
| |  |                                  |  |                                                                                                                                                                                                                                                                                                                                      
| |  | data
      aggregation         |  | has the meaning given in standard condition 36A (Requirement to Offer Terms
      for the Provision of Data Services).                                                                                                                                                                                                               
| |  |                                  |  |                                                                                                                                                                                                                                                                                                                                      
| |  | data
      processing          |  | has the meaning given in standard condition 36A (Requirement to Offer Terms
      for the Provision of Data Services).                                                                                                                                                                                                               
| |  |                                  |  |                                                                                                                                                                                                                                                                                                                                      
| |  | data
      retrieval           |  | has the meaning given in standard condition 36A (Requirement to Offer Terms
      for the Provision of Data Services).                                                                                                                                                                                                               
| |  |                                  |  |                                                                                                                                                                                                                                                                                                                                      
| |  | data
      services            |  | for the purposes of Section C only, has the meaning given in standard condition
      36A(Requirement
      to Offer Terms for the Provision of Data Services).                                                                                                                                                                      
| |  |                                  |  |                                                                                                                                                                                                                                                                                                                                      
| |  | data
      transfer service    |  | for the purposes of Section C only, has the meaning 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                                                                                       

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| |  |                                   |  | that  capacity
      as is consumed by the plant.                                                                                                                                                                                                                                                                                                       
| |  | --------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                   |  |                                                                                                                                                                                                                                                                                                                                                         
| |  | de
      minimis business       |  | for
      the purposes of Section C only, has the meaning given in paragraph 4(a)
      of standard condition 43 (Restriction on Activity and Financial Ring Fencing)                                                                                                                                                                                   
| |  |                                   |  |                                                                                                                                                                                                                                                                                                                                                         
| |  | DG                              |  | for
      the purposes of standard condition 51 (Incentive Schemes and Associated
      Information for Distributed Generation, Innovation Funding, and Registered
      Power Zones) only, has the same meaning as in special condition A1 (Definitions
      and interpretation).                                                                     
| |  |                                   |  |                                                                                                                                                                                                                                                                                                                                                         
| |  | DG
      rigs                   |  | for
      the purposes of standard condition 51 (Incentive Schemes and Associated
      Information for Distributed Generation, Innovation Funding and Registered
      Power Zones) only, means the regulatory instructions and guidance for the
      time being in force in relation to the incentive schemes established under
      that condition.
| |  |                                   |  |                                                                                                                                                                                                                                                                                                                                                         
| |  | directly
      connected        |  | in
      relation to any premises, means so connected to the licensees distribution
      system that the final connection to the premises is from that system (and
      indirectly connected means other than directly connected).                                                                                                                 
| |  |                                   |  |                                                                                                                                                                                                                                                                                                                                                         
| |  | 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 (c),
      of any affiliate or related undertaking of the licensee, which (except to
      the extent otherwise specified by the Authority in a direction to the licensee)
      comprises any of the following activities:                                            
| |  |                                   |  |                                                                                                                                                                                                                                                                                                                                                         
| |  |                                   |  | (a)                                                                                                                                                                                                                                                                                                                                                     
| |  |                                   |  |                                                                                                                                                                                                                                                                                                                                                         
| |  |                                   |  | (b)                                                                                                                                                                                                                                                                                                                                                     
| |  |                                   |  |                                                                                                                                                                                                                                                                                                                                                         
| |  |                                   |  | (c)                                                                                                                                                                                                                                                                                                                                                     

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| |  |                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                      | paragraphs 2(a)
      and 2(b) of standard condition 36A (Requirement to Offer Terms for the Provision
      of Data Services),
| |  | ---------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------
| |  |                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                
| |  |                                          | and
      in any of the above cases includes any business ancillary thereto.                                                                                                                                                                                                                                                                                                                                                                        
| |  |                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | distribution
      business activities | means
      those activities of the licensee which comprise the following:                                                                                                                                                                                                                                                                                                                                                                          
| |  |                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                
| |  |                                          | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                  | distribution services,
      (excluding metering services);                                                                    
| |  |                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                
| |  |                                          | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                  | metering services;                                                                                                             
| |  |                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                
| |  |                                          | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                  | de minimis business;
      and                                                                                                 
| |  |                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                
| |  |                                          | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                  | excluded services.                                                                                                             
| |  |                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                
| |  | 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 licence granted or treated as granted under section 6(1)(c) of the Act.                                                                                                                                                                                                                                                                                                                                                               
| |  |                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                
| |  | distribution
      services            | means
      all services provided by the licensee as part of its distribution business
      other than excluded services.                                                                                                                                                                                                                                                                                                                          
| |  |                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                
| |  | distribution
      services area       | has
      the meaning given at 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
      Services Obligations)).                                                                                                                                                                                                                                                                                                                           
| |  |                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                
| |  | distribution
      services provider   | means
      a licensed distributor in whose licence Section C has effect.                                                                                                                                                                                                                                                                                                                                                                           
| |  |                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                
| |  | 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 to the
      points of delivery to customers or authorised electricity operators or any
      transmission licensee within Great Britain in its capacity as operator of
      a transmission system,
| |  |                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                     

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| |  |                                             | 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 does not include any part of a transmission system.                                     
| |  | ------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | domestic
      customer                   | means
      a customer supplied or requiring to be supplied with electricity at domestic
      premises (but excluding such customer insofar 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.                                                                                                                                                                                                                                                                                                                         
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | 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.                                                                                                                                                                                                                                                                 
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | excluded
      services                   | means
      those services provided by the licensee as part of its distribution business
      which in accordance with special condition A2 (Scope of the charge restriction
      conditions) fall to be treated as excluded services.                                                                                                                                                                        
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | 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                                                                                                                                                                                                                                                                                                            

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| |  |                            | period
      of 12 months beginning on 1 April of any year
      and 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 where appropriate
      includes a generating station comprising more than one generation set.                                                                                                                                                                                                 
| |  |                            |                                                                                                                                                                                                                                                                                                                                                                         
| |  | Grid Code                | means
      a Grid Code which a transmission licensee is required to have in place pursuant
      to its transmission licence.                                                                                                                                                                                                                                          
| |  |                            |                                                                                                                                                                                                                                                                                                                                                                         
| |  | grid supply
      point  | means
      any point at which electricity is delivered from a transmission system to
      any distribution system.                                                                                                                                                                                                                                                    
| |  |                            |                                                                                                                                                                                                                                                                                                                                                                         
| |  | 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 (Indebtedness) and standard condition
      BA6 (Indebtedness) only, has the meaning given in that condition.                                                                                                                                                                                                           
| |  |                            |                                                                                                                                                                                                                                                                                                                                                                         
| |  | information              | means
      information (other than information that is subject to legal privilege)
      in any form or medium whatsoever and of any description specified by the
      Authority, and includes any documents, accounts, estimates, returns, records
      or reports and data of any kind, whether or not prepared specifically at
      the request of the Authority.
| |  |                            |                                                                                                                                                                                                                                                                                                                                                                         
| |  | interconnection          | means:                                                                                                                                                                                                                                                                                                                                                                  
| |  |                            |                                                                                                                                                                                                                                                                                                                                                                         
| |  |                            | the
      275 kV and 400 kV circuits between and including the associated switchgear
      at Harker substation in Cumbria and the associated switchgear at Strathaven
      substation 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                                                                                                                                                                                                                                                                                                                       

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| |  |                                               | 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
      alteration, modification or addition (other than for the purposes of 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 substation 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 substation 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                              | means
      the electric lines and electrical plant and meters owned or operated by
      a transmission licensee solely for the transfer of electricity to or from
      a transmission system into or out of England and Wales.                                                                                                                                                                                                                                                                                                                               
| |  |                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | investment                                  | for
      the purposes of Section C only, has the meaning given in standard condition
      43 (Restriction on Activity and Financial Ring Fencing); and                                                                                                                                                                                                                                                                                                                                                                                                        
| |  |                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  |                                               | for
      the purposes of Section BA only, has the meaning given in standard condition
      BA2 (Restriction on Activity and Financial Ring Fencing).                                                                                                                                                                                                                                                                                                                                                                                                          
| |  |                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | investment
      grade issuer credit rating | for
      the purposes of Section C only, has the meaning given in standard condition
      46                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

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| |  |                                                              | (Credit
      Rating of the Licensee); and                                                                                                                                                                                                                                                                                                                                                                                   
| |  | ------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                              
| |  |                                                              | for
      the purposes of Section BA only, has the meaning given in standard condition
      BA5 (Credit Rating of Licensee).                                                                                                                                                                                                                                                                                                
| |  |                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                              
| |  | issuer credit
      rating                                 | for
      the purposes of Section C only, has the meaning given in standard condition
      46 (Credit Rating of the 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 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
      equipment                                   | includes
      any electricity meter and any associated equipment which materially affects
      the operation of that meter.                                                                                                                                                                                                                                                                                                
| |  |                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                              
| |  | 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).
| |  |                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                              
| |  | Metering
      Point Administration Service
      operator | has
      the meaning given in standard condition 38
      (Establishment of a Data Transfer Service).                                                                                                                                                                                                                                                                                                                       

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| |  | metering
    services                            | means services
    relating to the provision, operation and maintenance of metering equipment.                                                                                                                                                                                                                                                      
| |  | -------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                                    |                                                                                                                                                                                                                                                                                                                                                     
| |  | non-domestic
    customer                        | means a customer
    who is not a domestic customer.                                                                                                                                                                                                                                                                                                
| |  |                                                    |                                                                                                                                                                                                                                                                                                                                                     
| |  | non-GB
    trading and transmission arrangements | for the purposes
          of standard condition 30B (BETTA Run-off Arrangements Scheme) only,
    has the meaning given in that condition.                                                                                                                                                                                                         
| |  |                                                    |                                                                                                                                                                                                                                                                                                                                                     
| |  | other Distribution
    Codes                     | means the distribution
          codes which the holders 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)); and                                                                                                                                                                             
| |  |                                                    |                                                                                                                                                                                                                                                                                                                                                     
| |  |                                                    | for the purposes
          of Section BA only, has the meaning given in standard condition BA2
    (Restriction on Activity and Financial Ring Fencing).                                                                                                                                                                                            
| |  |                                                    |                                                                                                                                                                                                                                                                                                                                                     
| |  | price control
    review information             | for the purposes
          of standard condition 52 (Price Control Review Information) only, has
    the meaning given in that condition.                                                                                                                                                                                                           
| |  |                                                    |                                                                                                                                                                                                                                                                                                                                                     
| |  | quality
    of service rigs                      | for the purposes
            of standard condition 49 (Quality of Service Incentive Scheme and
            Associated Information) only, means the regulatory instructions and
            guidance established under that condition.                                                                                                               
| |  |                                                    |                                                                                                                                                                                                                                                                                                                                                     
| |  | regulatory
    instructions and guidance         | for the purposes
          of Section C only, means any instructions and guidance issued by the
    Authority in relation to the collection and                                                                                                                                                                                                     

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| |  |                                             | reporting of
    specified information.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | ------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | 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 such property and any contractual or personal rights
    relating to such property or the acquisition thereof).
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | relevant
    documents                    | for the
        purposes of standard condition 30B (BETTA Run-off Arrangements Scheme)
        only,
    has the meaning given in that condition.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | 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 Licensee to the Authority) only,
    has the meaning given in that condition.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | relevant
    year                         | for the purposes
    of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  |                                             | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  |                                             | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  |                                             | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

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| |  |                                                                 | transmission
    licensee (the owner transmission licensee) which:                                                                                                                                                                 
| |  | --------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                                                 |                                                                                                                                                                                                                                      
| |  |                                                                 | (a)                                                                                                                                                                                                                                  
| |  |                                                                 |                                                                                                                                                                                                                                      
| |  |                                                                 | (b)                                                                                                                                                                                                                                  
| |  |                                                                 |                                                                                                                                                                                                                                      
| |  | revenue reporting
    rigs                                    | for the purposes
        of standard condition 50 (Price Control Revenue Reporting and Associated
        Information) only, means the regulatory instructions and guidance for
    the time being in force under that condition.    
| |  |                                                                 |                                                                                                                                                                                                                                      
| |  | running-off                                                   | for the purposes
        of standard condition 30B (BETTA Run-off Arrangements Scheme) only, has
    the meaning given in that condition.                                                                                            
| |  |                                                                 |                                                                                                                                                                                                                                      
| |  | Scottish Grid
    Code                                        | means any grid code
        which any transmission licensee other than the system operator is obliged
    to maintain pursuant to its licence.                                                                                       
| |  |                                                                 |                                                                                                                                                                                                                                      
| |  | 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 by Licensee to the Authority) only,
    has the meaning given in that condition.                                                                                          
| |  |                                                                 |                                                                                                                                                                                                                                      
| |  | Section C (system
    operator standard conditions) Direction | means a direction
        issued by the Authority or (where appropriate) the Secretary of State
        in accordance with standard condition A2 (Application of Section C) of
    the standard conditions for transmission licences.
| |  |                                                                 |                                                                                                                                                                                                                                      
| |  | separate business                                             | for the purposes
        of standard condition 39 only (Restriction on Use of Certain Information
        and Independence of the Distribution Business), has the meaning given
    in that condition.                               
| |  |                                                                 |                                                                                                                                                                                                                                      
| |  | Settlement
    Agreement for Scotland                         | has the meaning given
    in standard condition 12 (Settlement Agreement for Scotland).                                                                                                                                              

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| |  | 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:                                                                                                                                                                                                                        
| |  |                           |                                                                                                                                                                                                                                                 
| |  |                           | (a)                                                                                                                                                                                                                                             
| |  |                           |                                                                                                                                                                                                                                                 
| |  |                           | (b)                                                                                                                                                                                                                                             
| |  |                           |                                                                                                                                                                                                                                                 
| |  |                           | (c)                                                                                                                                                                                                                                             
| |  |                           |                                                                                                                                                                                                                                                 
| |  | standby                 | means the periodic
    or intermittent supply or sale of electricity:                                                                                                                                                                           
| |  |                           |                                                                                                                                                                                                                                                 
| |  |                           | (a)                                                                                                                                                                                                                                             
| |  |                           |                                                                                                                                                                                                                                                 
| |  |                           | (b)                                                                                                                                                                                                                                             
| |  |                           |                                                                                                                                                                                                                                                 
| |  | 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 licence granted
    or treated as granted under section 6(1)(d) of the Act.                                                                                                                                                             
| |  |                           |                                                                                                                                                                                                                                                 
| |  | system operator         | means the holder
        for the time being of a transmission licence in relation to which the
        Authority or (where appropriate) the Secretary of State has issued a
    Section C (system operator standard conditions) Direction and in

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| |  |                                 | which Section C remains
        in effect (whether or not subject to any terms included in that direction
        or to any subsequent variation of its terms to which the transmission
    licensee may be subject).                                                                                                                                                                                                                                                                                                                                                                                                                
| |  | ------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | system operator
    agreement | for the purposes
        of standard condition 30B (BETTA Run-off Arrangements Scheme) only, has
    the meaning given in that condition.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  |                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | top-up                        | means the supply
    or sale of electricity on a continuing or regular basis:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  |                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  |                                 | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  |                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  |                                 | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  |                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | 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 a transmission
    licensee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  |                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | transmission
    licence      | means a licence granted
    or treated as granted under section 6(1)(b) of the Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  |                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | transmission
    licensee     | means the holder
    for the time being of a transmission licence.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  |                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | 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 substation 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

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| |  |                             | of electricity
    but does not include any remote transmission assets.                                                                                                                                                     
| |  | --------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                             |                                                                                                                                                                                                                             
| |  | ultimate
    controller   | means:                                                                                                                                                                                                                      
| |  |                             |                                                                                                                                                                                                                             
| |  |                             | (a)                                                                                                                                                                                                                         
| |  |                             |                                                                                                                                                                                                                             
| |  |                             | (b)                                                                                                                                                                                                                         
| |  |                             |                                                                                                                                                                                                                             
| |  |                             |                                                                                                                                                                                                                             
| |  |                             |                                                                                                                                                                                                                             
| |  |                             |                                                                                                                                                                                                                             
| |  |                             |                                                                                                                                                                                                                             
| |  |                             |                                                                                                                                                                                                                             
| |  |                             |                                                                                                                                                                                                                             
| |  |                             | and
          for the purposes of sub-paragraph (b), a person is connected with another
          person if he is 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, measured by metering equipment.       
| |  |                             |                                                                                                                                                                                                                             
| |  | use
    of system         | means
          use of the licensees distribution system for the distribution
    of electricity by the licensee on behalf of 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                                                                  
| |  |                             |                                                                                                                                                                                                                             

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                           | any person, all as more fully described in standard conditions 4 (Use of
      System Charging Methodology) and 4A (Charges for Use of System), but does
      not include connection charges.                                                            
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                           |                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | use
      of system chargingmethodology                                                 | means
      the principles on which and themethods
      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.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                           |                                                                                                                                                                                                                                                           
|2. | Any
      words or expressions used in Part 1 of the Act, the Utilities Act 2000 or
      the Energy Act 2004 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 any 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.                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                           |                                                                                                                                                                                                                                                           
|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)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | a
      provision thereof;                                                                |                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                          
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | a
      provision of the standard conditions of electricity supply licences;             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                          
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | a
      provision of the standard conditions of electricity generation licences;
      or
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                          
|   | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | a
      provision of the standard conditions of electricity transmission licences,       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                           |                                                                                                                                                                                                                                                           
|   | 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 of the other
      standard conditions in question as modified.                                                                                                                                                                                                                                                                                     

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|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
    asincorporated
    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 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:                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|11. | The
          definitions set out 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). Accordingly:                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

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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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TO BE INSERTED
      IN SECTION B

Standard
        Condition 20. Payments in Relation to Standards of Performance

|1. | With
          effect from 1 April 2005, the licensee shall not enter into any use
          of system agreement with an electricity supplier which does not contain
          appropriate provisions requiring the licensee, where it has not made
          payments directly to a customer in respect of its own performance or
          that of another electricity distributor in relation to a distribution
          system within the distribution services area of the licensee pursuant
          to any provision of regulations made under section 39A of the Act (the
          regulations), to make payments in respect of its own or that
          other electricity distributors performance 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 the regulations.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|2. | The
          licensee shall take all appropriate steps within its power to ensure
          that any existing use of system agreement it has with an electricity
          supplier is so amended with effect from 1 April 2005, or as soon as
          may be thereafter, that the agreement is compliant in all material
    respects with the requirements of paragraph 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|3. | The
          licensee shall not enter into or allow to continue any agreement, either
          for connection to or use of the distribution system, with any other
          licensed distributor (the other distributor) that does
    not provide:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

---





TO BE INSERTED IN
  SECTION B

| |     |                                                                                                                                                                                                                     | performancepursuant
          to any provision of the regulations, as provided for in paragraph 3(b),
    or                                
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                     |                                                                                                                                             
| |     | (ii)                                                                                                                                                                                                                | the
            other distributor has been unable to recover from the licensee the
    costs that it considers are due under paragraph 3(c);
| |     |                                                                                                                                                                                                                     |                                                                                                                                             
| |     | and                                                                                                                                                                                                                
| |     |                                                                                                                                                                                                                     |                                                                                                                                             
| | (e) | for
          the licensee to pay to the other distributor such costs (including,
          where appropriate, financing costs) as may be determined under paragraph
    3(d) as soon as is reasonably practicable.

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TO BE INSERTED
  IN SECTION C

Standard Condition
        36. Requirement to Offer Terms for the
Provision of Basic Metering Services

|1. | This
      condition has effect on and after 1 April 2005.                                                                                                                                                                                                                                                    
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                               
|2. | Without
            prejudice to the provisions of paragraph 12, this condition sets
            out the
      obligations of the licensee relating to the provision of the services of
            basic meter asset provision and basic meter operation (collectively,
      the basic metering services).
|   |                                                                                                                                                                                                                                                                                                               
|3. | For
    the purposes of this condition:                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                               
|   | (a)                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                               
|   | (b)                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                               
|4. | In
            relation to the licensees discharge of its obligations under
      conditions 36 to 36D of this licence:                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                               
|   | (a)                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                               
|   | (b)                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                               
|5. | For
            the purposes of paragraph 4, what is meant in any particular case
            by the
      same functionality or the same standard of performance, quality
      and timeliness shall be a question of fact.                                                                              
|   |                                                                                                                                                                                                                                                                                                               
|6. | On
      application made by any person, the licensee shall (subject to paragraph
      9):                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                               

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TO BE INSERTED
IN SECTION C

|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                  | where
      the person making the application is able to establish to the reasonable
      satisfaction of the licensee that the meters in question are required for
      use in relation to metering points within the distribution services area
      of the licensee, offer to enter into an agreement for providing the service
      described in paragraph 3(a);
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                         
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                  | offer
      to enter into an agreement for providing within its distribution services
      area such of the services described in paragraph 3(b) as may be required.                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|7. | In
            making an offer pursuant to this condition to enter into any agreement,
            the licensee shall set out:                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                         
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                  | the
          date by which the services required will be provided (time being of
    the essence, unless otherwise agreed between the parties);                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                         
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                  | the charges to be paid in respect of the services required, such charges
    (unless manifestly inappropriate) being:                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                      | (i)                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                      | (ii)                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                         
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                  | such other detailed terms in respect of each of the services required
    as are or may be appropriate for the purposes of the agreement.                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                         
|8. | The
      licensee shall offer terms for agreements in accordance with paragraph 6
      as soon as practicable and (except 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.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                         
|9. | 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 in being:                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                         
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                  | in
    breach of its duties under section 9 of the Act;                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                         
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                  | in
          breach either of any regulations made under section 29 of the Act or
          of any other enactment relating to safety or standards that is 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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TO BE INSERTED
IN SECTION C

|10. | The
      licensee shall undertake each of the services referred to in paragraph 3
      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 insofar as they relate to the provision of those services.                                                                                                                                                                                                                                                                                                      
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|11. | In
      providing any of the services referred to in paragraph 3, the licensee shall
      not restrict, distort or prevent competition in the supply of electricity.                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|12. | Where,
            in relation to any metering point within the licensees distribution
            services area, a person (including, if that person is a company,
            an affiliate
      or a related undertaking of the company) who is party to an agreement with
            the licensee for the provision of the services of basic meter asset
            provision
      and basic meter operation pursuant to this condition appoints, in accordance
            with the provisions of the Master Registration Agreement, a provider
            other
      than the licensee of:                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | notwithstanding
            anything in this condition, the licensee shall be under no obligation
            thereafter to offer to enter into any such agreement with that person
            for the provision of that service or (as the case may be) those services
    in relation to that metering point.                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|13. | An
      appointment made in accordance with the provisions of the Master Registration
      Agreement, after 28 June 2004 and before this condition takes effect, of
      a provider other than the licensee of any of the services provided pursuant
      to paragraph 1(a) or (b) of condition 36B(Requirement to Offer Terms for the Provision of Distributor
      Metering and Data Services) of this licence in the form in which it was
      in force on1 June 2003 shall be treated, for the purposes of paragraph
      12 of this condition, as an appointment which did not have effect until
      1 April 2005.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|14. | For
      the avoidance of doubt, nothing in this condition:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

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TO BE INSERTED
IN SECTION C

|    |                                                                                                                                                                                                                                                                                                                                                                    | higher
    than that provided previously within the meaning of paragraph 4.                                      
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                  
|15. | The
      obligations of the licensee in relation to the provision of:                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                   
|    | (a)                                                                                                                                                                                                                                                                                                                                                                | the
          service of basic meter asset provision (except for meters provided
    prior to 31 March 2007); and
|    |                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                  
|    | (b)                                                                                                                                                                                                                                                                                                                                                                | the
    services of basic meter operation,                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                  
|    | pursuant
          to this condition shall cease to have effect on 31 March 2007 unless
          the Authority issues a direction for the purposes of this condition
          not less than six months before that date that it considers that the
          cessation of those obligations would be likely to be detrimental to
    the interests of consumers.
|    |                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                  
|16. | For
            the avoidance of doubt, references to meter in this condition
            and conditions 36A to 36D do not include references to any meter
            or metering
      equipment that is configured to record the quantity of electricity supplied
      to premises during each half-hour period of supply.                                  

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TO BE INSERTED
IN SECTION C

Standard Condition
          36A. Requirement to Offer Terms for
  the Provision of Data Services

|  
|--
|1.
|  
|2.
|  
|  
|  
|  
|  
|3.
|  
|4.
|  
|5.
|  
|  
|  
|  
|  
|  
|  
|  
|  
|  
|  
|6.
|  

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| |                                                                                                                                                                                                                                           | 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
| | 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.

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|TO
      BE INSERTED IN SECTION C
|---------------------------------
|                                 
|7.                               
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|8.                               
|                                 
|9.                               
|                                 
|10.                              

|    |                        |  |                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | ---------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|11. | In this
    condition: |  |                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                        |  |                                                                                                                                                                                                                                                                                                                                                                                                     
|    | data aggregation     |  | means services
          comprising any or all of the following: the collation and summation
          of meter reading data (whether actual or estimated) and of data in
          respect of the consumption of electricity at premises which receive
          an unmetered supply, and the delivery of such data to any person for
    settlement purpose                                       
|    |                        |  |                                                                                                                                                                                                                                                                                                                                                                                                     
|    | data processing      |  | means services
          comprising any or all of the following: the processing, validation
          and estimation of meter reading data, and the creation, processing
          and validation of data in respect of the consumption of electricity
          at premises which receive an unmetered supply, and the delivery of
    such data to any person for the purpose of data aggregation.
|    |                        |  |                                                                                                                                                                                                                                                                                                                                                                                                     
|    | data retrieval       |  | means
          services comprising any or all of the following: the retrieval and
          verification of meter reading data from electricity meters and the
    delivery of such data to any person for the purpose of data processing.                                                                                                                                                         

---



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TO BE INSERTED
  IN SECTION C

---



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TO BE INSERTED IN SECTION C

|Standard Condition 36B. Non-Discrimination in the Provision
      of Basic Metering Services and Data Services
|--------------------------------------------------------------------------------------------------------------
|                                                                                                              
|1.                                                                                                            
|                                                                                                              
|2.                                                                                                            

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TO BE INSERTED
  IN SECTION C

Standard Condition
  36C. Basis of Charges for Basic Metering Services 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 basic metering services 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 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 required under paragraph
      2.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|2. | The
      statements referred to at paragraph 1 shall include a schedule of charges
      for each of the basic metering services 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 basic metering services
      and data services, restrict, distort or prevent competition in the generation,
      distribution or supply of electricity or in the provision of meter equipment,
      meter maintenance or data retrieval services.                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|5. | The
      licensee:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|6. | The
      licensee shall send a copy of any 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 any 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

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TO BE INSERTED
  IN SECTION C

|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 statement.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                         

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TO BE INSERTED
  IN SECTION C

|Standard
      Condition 36D. Provision of Basic Metering and Data Services  Functions
      of the Authority
|--------------------------------------------------------------------------------------------------------------
|                                                                                                              
|1.                                                                                                            
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|2.                                                                                                            
|                                                                                                              
|3.                                                                                                            

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TO BE INSERTED
  IN SECTION C

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

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TO BE INSERTED IN
  SECTION C

|Standard
      Condition 42. Regulatory Accounts
|------------------------------------------------
|                                                
|Part
      A: Application and purpose           
|                                                
|1.                                              
|                                                
|                                                
|                                                
|                                                
|                                                
|Part
      B: Preparation of accounts           
|                                                
|2.                                              
|                                                
|3.                                              
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                

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TO BE INSERTED IN
  SECTION C

|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | together
      with notes thereto and statements of the accounting policies adopted.                                                                                                                                                                                                                                                                        
|-------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                      
|4.                                     | Regulatory
      accounts in respect of a financial year prepared under paragraph 3(b) shall,
      so far as reasonably practicable and unless otherwise approved by the Authority
      having regard to the purposes of this condition, have the same content and
      format as the most recent or concurrent statutory accounts of the licensee
      prepared under sections 226 and 226A or, where appropriate, section 226B
      of the Companies Act 1985 and shall comply with all relevant accounting
      and reporting standards currently in force which have been issued or adopted
      by the Accounting Standards Board or, if the regulatory accounts have been
      prepared under section 226B of the Companies Act 1985, by the International
      Accounting Standards Board.
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|Part C: Audit and delivery of accounts
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|5.                                     | Unless
      the Authority otherwise consents, the licensee must:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                       | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | procure,
      in relation to its regulatory accounts:                                                                                                                                                                                                                                                                                                      
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                             
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (i)                                                                                                                                                                                                                                                                                                                                                         
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                             
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (ii)                                                                                                                                                                                                                                                                                                                                                        
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                             
|                                       | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | deliver
      to the Authority those accounts and the auditors reports referred
      to in paragraph 5(a)(ii) and paragraph 6 as soon as is reasonably practicable,
      and in any event prior to their publication under Part D and not later than
      31 July following the end of the financial year to which the regulatory
      accounts relate.
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                             
|6.                                     | The
      licensee shall take all appropriate steps within its power to procure, in
      relation to its regulatory accounts:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                             
|                                       | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | that
      the audit referred to in paragraph 5(a)(i) verifies whether the obligation
      to avoid discrimination and cross-subsidies specified in Article 19 of Directive
      2003/54/EC of the European Parliament and of the European Council of 26
      June 2003 has been respected by the licensee; and                                          

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|TO BE INSERTED IN
      SECTION C             
|----------------------------------------------
|                                              
|                                              
|                                              
|7.                                            
|                                              
|8.                                            
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|Part D: Publication of regulatory
    accounts
|                                              
|9.                                            
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|10.                                           
|                                              
|                                              
|                                              
|                                              
|                                              

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|TO BE INSERTED IN SECTION C
|---------------------------
|                           
|Part E: Interpretation     
|                           
|11.                        
|                           
|12.                        
|                           
|13.                        
|                           
|                           
|                           
|                           
|                           
|                           
|                           
|                           
|                           

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|TO BE INSERTED IN SECTION C
|---------------------------
|                           
|                           
|                           
|1.                         
|                           
|2.                         
|                           
|                           
|                           
|                           
|                           
|3.                         
|                           
|4.                         
|                           
|5.                         
|                           
|                           
|                           
|                           
|                           

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|TO BE INSERTED IN SECTION C
|---------------------------
|                           
|                           
|                           
|1.                         
|                           
|2.                         
|                           
|                           
|                           
|                           
|                           
|                           
|                           
|3.                         
|                           
|                           
|                           
|                           
|                           
|                           
|                           
|                           
|                           
|4.                         
|                           
|                           
|                           

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|TO BE INSERTED IN
      SECTION C
|---------------------------------
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 

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|TO
      BE INSERTED IN SECTION C
|---------------------------------
|                                 
|                                 
|                                 
|                                 
|                                 
|5.                               

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|TO
      BE INSERTED IN SECTION C                     
|------------------------------------------------------
|                                                      
|Standard
      Condition 44. Availability of Resources
|                                                      
|1.                                                    
|                                                      
|                                                      
|                                                      
|                                                      
|                                                      
|2.                                                    
|                                                      
|                                                      
|                                                      
|                                                      
|                                                      
|                                                      
|                                                      
|3.                                                    

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|TO
      BE INSERTED IN SECTION C
|---------------------------------
|                                 
|                                 
|                                 
|4.                               
|                                 
|5.                               
|                                 
|6.                               
|                                 
|7.                               
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 

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|TO
      BE INSERTED IN SECTION C
|---------------------------------
|                                 
|                                 
|                                 
|                                 

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|TO
      BE INSERTED IN SECTION C                         
|----------------------------------------------------------
|                                                          
|Standard
      Condition 46. Credit Rating of the Licensee
|                                                          
|1.                                                        
|                                                          
|2.                                                        
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          
|                                                          

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TO BE INSERTED
        IN SECTION C

Standard Condition
47. Indebtedness

|1. | In
      addition to the requirements of standard condition 29 (Disposal of Relevant
      Assets), the licensee shall not without the prior written consent of the
      Authority (following the disclosure by the licensee of all material facts):
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                      
|   | (a)                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                      
|   | (i)                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                      
|   | (ii)                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                      
|   | (iii)                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                      
|   | (iv)                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                      
|   | (b)                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                      
|   | (i)                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                      
|   | (ii)                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                      
|   | (iii)                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                      
|   | (iv)                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                      
|   | (v)                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                      
|   | (vi)                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                      
|   | (vii)                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                      
|   | provided,
          however, that the provisions of paragraph 3 below shall prevail in
    any of the circumstances described or referred to therein;                                                                                                
|   |                                                                                                                                                                                                                                                      

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TO BE INSERTED
IN SECTION C

|   | (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 at1 October 2001, 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,
|   |                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                               | provided,
            however, that the provisions of sub-paragraphs (c) and(d)shall
             not prevent the licensee from giving any guarantee permitted by
            and compliant
    with the requirements of sub-paragraph (a).                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|2. | The
          payment condition referred to in paragraph 1(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:  
|   |                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | (a)                                                                                                                                                                                                                           | the
      counter-party to the transaction has and maintains until payment is made
      in full an investment grade issuer credit rating, or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | (b)                                                                                                                                                                                                                           | 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.                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                              
|3. | Except
      with the prior consent of the Authority, the licensee shall not enter into
      or complete any transaction of a type referred to or described in paragraph
      1(b) save in accordance with paragraph 4, if:
|   |                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | (a)                                                                                                                                                                                                                           | the
      licensee does not hold an investment grade issuer credit rating;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | (b)                                                                                                                                                                                                                           | where
      the licensee holds more than one issuer credit rating, one or more of the
      ratings so held is not investment grade; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | (c)                                                                                                                                                                                                                           | any
      issuer credit rating held by the licensee is BBB- by Standard      & Poors Ratings Group or Fitch Ratings Ltd or
      Baa3 by Moodys Investors Service, Inc. (or such higher issuer credit
      rating as may be specified by any of these credit rating agencies from
      time
      to time as the lowest investment grade credit rating), or is an equivalent
      rating from another agency that has been notified to the licensee by the
      Authority as of comparable standing for the purposes of standard condition
      46 (Credit Rating of the Licensee) and:                                                                                              
|   |                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | (i)                                                                                                                                                                                                                           | is
      on review for possible downgrade; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

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TO BE INSERTED
IN SECTION C

|   |                                                                                                                                                                                                                                                                                                                                                                                          | (ii)                                                                                                                                                                                                                                                                                                                                                           | is
    on Credit Watch or Rating Watch with a negative designation;                                                                                                                                                                                                                                                        
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                          | or,
    where neither (i) nor (ii) applies:                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                          | (iii)                                                                                                                                                                                                                                                                                                                                                          | the
          rating outlook of the licensee as specified by any credit rating agency
          referred to in sub-paragraph (c) which at the relevant time has assigned
          the lower or lowest investment grade issuer credit rating held by the
    licensee has been changed from stable or positive to negative.
|   |                                                                                                                                                                                                                                                                                                                                                                                         
|4. | Where
      paragraph 3 applies, the licensee may not without the prior written consent
      of the Authority (following disclosure of all material facts) transfer,
      lease, license or lend any sum or sums, asset, right or benefit to any affiliate
      or related undertaking of the licensee as described or referred to in paragraph
      1(b), otherwise than by way of:
|   |                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                               
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                      | payment
            properly due for any goods, services or assets in relation to commitments
            entered into prior to the date on which the circumstances described
            in paragraph
      3 arise, and which are provided on an arms length basis and on normal
      commercial terms;                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                               
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                      | a
            transfer, lease, licence or loan of any sum or sums, asset, right
            or benefit
      on an arms length basis, on normal commercial terms and where the
      value of the consideration due in respect of the transaction in question
      is payable wholly in cash and is paid in full when the transaction is entered
      into;
|   |                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                               
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                      | repayment
      of, or payment of interest on, a loan not prohibited by paragraph 1(a) and
      which was contracted prior to the date on which the circumstances in paragraph
      3 arise, provided that such payment is not made earlier than the original
      due date for payment in accordance with its terms; and                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                               
|   | (d)                                                                                                                                                                                                                                                                                                                                                                                      | payments
      for group corporation tax relief or for the surrender of Advance Corporation
      Tax calculated on a basis not exceeding the value of the benefit received,
      provided that the payments are not made before the date on which the amounts
      of tax thereby relieved would otherwise have been due.                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                            
|5. | In
    this condition:                                                                                                                                                                                                                                                                                                                                                                  

| |  |                                |     |                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | ------------------------------ | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | cross-default
    obligation |     | means
          a term of any agreement or arrangement whereby the licensees
          liability to pay or repay any debt or other sum arises or is increased
          or accelerated or is capable of arising, of increasing or of being
          accelerated by reason of a default (howsoever such default may be described
    or defined) by any person other than the licensee, unless:
| |  |                                |     |                                                                                                                                                                                                                                                                                                                                                                                                 
| |  |                                | (i) | that liability
    can arise only as the                                                                                                                                                                                                                                                                                                                                                        
| |  |                                |     |                                                                                                                                                                                                                                                                                                                                                                                                 

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TO BE INSERTED
IN SECTION C

| |  |                            |       | result of
    a default by a subsidiary of the licensee;                                                                                                                                                                                                                                                                                                 
| |  | -------------------------- | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                            |       |                                                                                                                                                                                                                                                                                                                                                          
| |  |                            | (ii)  | the
          licensee holds a majority of the voting rights in that subsidiary and
          has the right to appoint or remove a majority of its board of directors;
    and                                                                                                                                                                           
| |  |                            |       |                                                                                                                                                                                                                                                                                                                                                          
| |  |                            | (iii) | that
          subsidiary carries on business only for a purpose within paragraph
          (a) of the definition of permitted purpose set out in standard condition
    32 (Interpretation of Section C (Distribution Services Obligations)).                                                                                                           
| |  |                            |       |                                                                                                                                                                                                                                                                                                                                                          
| |  | indebtedness             |       | means
          all liabilities now or hereafter due, owing or incurred, whether actual
          or contingent, whether solely or jointly with any other person and
          whether as principal or surety, together with any interest accruing
          thereon and all costs, charges, penalties and expenses incurred in
    connection therewith.
| |  |                            |       |                                                                                                                                                                                                                                                                                                                                                          
| |  | investment
    grade     |       | has
          the meaning given in paragraph 2 of standard condition 46 (Credit Rating
    of the Licensee).                                                                                                                                                                                                                                             
| |  |                            |       |                                                                                                                                                                                                                                                                                                                                                          
| |  | issuer
    credit rating |       | has
          the meaning given in paragraph 2 of standard condition 46 (Credit Rating
    of the Licensee).                                                                                                                                                                                                                                             
| |  |                            |       |                                                                                                                                                                                                                                                                                                                                                          

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TO BE INSERTED
IN SECTION C

Standard Condition
        49. Quality of Service Incentive Scheme
  and Associated Information

Part A:   General

|1.                                                              | The
      purposes of this condition are to secure the collection of information on
      a common basis, and to an appropriate degree of accuracy, by the licensee
      so as:                                                                                                                                                                                                                                                                             
|--------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|2.                                                              | The
            licensee shall establish and maintain appropriate systems, processes
            and
      procedures to measure and record specified information from the dates specified
            in paragraph 4 and in accordance with the regulatory instructions
            and guidance
      (including any associated information specified therein) for the time being
      in force pursuant to this condition (the quality of service rigs)
|                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|Part
    B:   Quality of service rigs and specified information
|                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|3.                                                              | For
      the purposes of this condition:                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                | charge
          restriction conditions shall have the same meaning as set out
    in special condition A1 (Definitions and interpretation).                                                                                                                                                                                                                                                                                                               
|                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                | quality of service rigs means the regulatory
        instructions and guidance issued by the Authority for the purposes of
        this condition as modified from time to time by direction under paragraph
    10 and, subject to paragraphs 13 and 14, may include:                                                                                                                                                                                     
|                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                          

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TO BE INSERTED IN
SECTION C

| | (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 information shall be provided
      to the Authority;                                                                                                                              
| |                                    |                                                                                                                                                                                                                                                    
| | (f)                                | requirements
      as to the form and manner in which specified information shall be recorded
      and 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 specified
            information
      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 was interrupted 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;                                                                                                                                                                                                          
| |                                    |                                                                                                                                                                                                                                                    
| | (bb)                               | the
      time of the call; and                                                                                                                                                                                                                    
| |                                    |                                                                                                                                                                                                                                                    
| | (cc)                               | if
          known, the name of the caller and whether the caller is or is not a
          domestic
      customer;                                                                                                                                
| |                                    |                                                                                                                                                                                                                                                    
| | (c)                                | (i)                                                                                                                                                                                                                                                

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TO BE INSERTED IN
      SECTION C

| | (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)                                                                                                                                                                                                                      
| |                                                         |                                                                                                                                                                                                                          
| | 4.                                                      | The
      licensee shall collect specified information:                                                                                                                                                                  
| |                                                         |                                                                                                                                                                                                                          
| |                                                         | (a)                                                                                                                                                                                                                      
| |                                                         |                                                                                                                                                                                                                          
| |                                                         | (b)                                                                                                                                                                                                                      
| |                                                        
| | Part
    C: Information to be provided to the Authority
| |                                                         |                                                                                                                                                                                                                          
| | 5.                                                      | The
      licensee shall provide to the Authority:                                                                                                                                                                       
| |                                                         |                                                                                                                                                                                                                          
| |                                                         | (a)                                                                                                                                                                                                                      
| |                                                         |                                                                                                                                                                                                                          
| |                                                         | (b)                                                                                                                                                                                                                      
| |                                                         |                                                                                                                                                                                                                          
| |                                                         | (c)                                                                                                                                                                                                                      
| |                                                        
| | Part
    D: Audit requirements                         
| |                                                         |                                                                                                                                                                                                                          
| | 6.                                                      | The
            licensee shall permit a person or persons nominated by the Authority
            (in
      each case an examiner) to examine:                                                                          
| |                                                         |                                                                                                                                                                                                                          
| |                                                         | (a)                                                                                                                                                                                                                      
| |                                                         |                                                                                                                                                                                                                          
| |                                                         | (b)                                                                                                                                                                                                                      
| |                                                         |                                                                                                                                                                                                                          
| |                                                         | (c)                                                                                                                                                                                                                      

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TO BE INSERTED IN
      SECTION C

|7.                                                      | The
      licensee shall (and shall procure, insofar as it is able to do so, that
      any affiliate or related undertaking 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 or any affiliate or related undertaking
      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 may be
      necessary or expedient for such purpose, in each case subject to reasonable
      prior notice to the licensee:                                                                                                                                                                                                                                  
|                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                        | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                        | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                        | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                        | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                        | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                        | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|9.                                                      | The
            licensees performance of its obligations under this Part D
            is conditional on the examiner having entered into an agreement with
            the licensee to maintain
      confidentiality on reasonable terms.                                                                                                                                                                                                                                                                                                          
|                                                       
|Part
    E: Modification of the quality of service rigs
|                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|10.                                                     | Where
      the Authority considers that the quality of service rigs should be modified
      to:                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                        | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                        | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

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TO BE INSERTED IN SECTION C

|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | further
      clarify the meaning of words and phrases used within such requirements to
      define the information to be provided;                                                                        
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                             
|    | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | improve
      the form or manner in which such information is to be provided under such
      requirements; or                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                             
|    | (e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | introduce
          additional categories of specified information or enlarge existing
          categories
      of specified information,                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    | in
          such ways as the Authority may reasonably require so as more effectively
          to achieve the purpose of this condition, the Authority may, subject
          to paragraphs 11 to 14 below and to paragraph 15 of special condition
          C2 (Calculation of charge restriction adjustments arising from performance
          in respect of quality of service), modify the quality of service rigs
          by issuing a direction for that purpose to all distribution services
    providers.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|11. | Before
      issuing a direction under paragraph 10, the Authority, by notice given to
      all distribution services providers, must:                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                             
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | state
      that it proposes to make a modification and set out the date on which it
      proposes that this should take effect;                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                             
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | set
      out the text of the modification, the purpose and effect of the modification
      and the reasons for proposing it; and                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                             
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | specify
          the time (not being less than 28 days from the date of the notice)
          within
      which representations or objections with respect to the proposed modification
      may be made,
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    | and
          must consider any representations or objections which have been duly
    made and not withdrawn, and give reasons for its decision.                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|12. | Where
      any proposed modification of the quality of service rigs relates:                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                             
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | to
      a requirement under those rigs to provide specified information to a greater
      level of accuracy; or                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                             
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | to
          the introduction into those rigs of an additional category of specified
          information which is or is intended to be required for the purposes
          of the
      scheme;           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    | the
          Authority may not make that modification except in accordance with
          the procedure under section 11A of the Act which would apply to the
    modification as if it were a modification of this condition.                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|13. | Any
      modification of the quality of service rigs under paragraph 10 to introduce
      an additional category of specified information or to enlarge an existing
      category of information may not exceed what may reasonably be requested
      from the licensee by the Authority under paragraph 1 of standard condition
      24 (Provision of Information to the Authority), excluding any reference
      to paragraph 8 of that condition.                                                             

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TO BE INSERTED IN SECTION C

|14. | The
            provisions of the quality of service rigs may not exceed what is
            reasonably required to achieve the purposes of this condition or
            purport to have effect with respect to the interpretation of any
            other condition of this licence or the fulfilment by the licensee
            of any obligation imposed in respect of any matter which is the subject
    of any such condition.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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New conditions to be inserted in to section C

Standard Condition 50. Price Control Revenue Reporting
    and Associated Information

|Part
    A: General                                         
|------------------------------------------------------------
|                                                            
|1.                                                          
|                                                            
|2.                                                          
|                                                            
|Part
    B: Revenue reporting rigs and specified information
|                                                            
|3.                                                          
|                                                            
|                                                            
|                                                            
|                                                            
|                                                            
|                                                            
|                                                            
|                                                            
|                                                            
|                                                            
|                                                            
|                                                            
|                                                            
|15.                                                         
|                                                            
|                                                            
|                                                            

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TO BE INSERTED
  IN SECTION C

|    |                                                                                                                                                                      | monitor,
          to an appropriate degree of accuracy, compliance with the charge restriction
          conditions, and shall
include:                   
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                      |                                                                                                                                                            
|    |                                                                                                                                                                      | (i)                                                                                                                                                        
|    |                                                                                                                                                                      |                                                                                                                                                            
|    |                                                                                                                                                                      |                                                                                                                                                            
|    |                                                                                                                                                                      | (bb)                                                                                                                                                       
|    |                                                                                                                                                                      |                                                                                                                                                            
|    |                                                                                                                                                                      | (cc)                                                                                                                                                       
|    |                                                                                                                                                                      |                                                                                                                                                            
|    |                                                                                                                                                                      | (dd)                                                                                                                                                       
|    |                                                                                                                                                                      |                                                                                                                                                            
|    |                                                                                                                                                                      | (ii)                                                                                                                                                       
|    |                                                                                                                                                                      |                                                                                                                                                            
|    |                                                                                                                                                                      | (aa)                                                                                                                                                       
|    |                                                                                                                                                                      |                                                                                                                                                            
|    |                                                                                                                                                                      | (bb)                                                                                                                                                       
|    |                                                                                                                                                                      |                                                                                                                                                            
|    | (iii)                                                                                                                                                                | in relation to the restriction on basic metering charges:                                                                                                  
|    |                                                                                                                                                                      |                                                                                                                                                            
|    |                                                                                                                                                                      | (aa)                                                                                                                                                       
|    |                                                                                                                                                                      |                                                                                                                                                            
|    |                                                                                                                                                                      | (bb)                                                                                                                                                       
|    |                                                                                                                                                                      |                                                                                                                                                            
|    |                                                                                                                                                                      | (cc)                                                                                                                                                       
|    |                                                                                                                                                                      |                                                                                                                                                            
|    |                                                                                                                                                                      | (iv)                                                                                                                                                       
|    |                                                                                                                                                                      |                                                                                                                                                            
|    |                                                                                                                                                                      | (v)                                                                                                                                                        
|    |                                                                                                                                                                      |                                                                                                                                                            
|    |                                                                                                                                                                      | (vi)                                                                                                                                                       
|    |                                                                                                                                                                     
|4.  | The
    licensee shall collect specified information:                                                                                                               
|    |                                                                                                                                                                      |                                                                                                                                                            
|    | (a)                                                                                                                                                                  | in
      respect of the matters specified in paragraphs 3(d)(i) to (v) from and including
      1 April 2005; and                                          
|    |                                                                                                                                                                      |                                                                                                                                                            
|    | (b)                                                                                                                                                                  | in
      respect of any matter specified under paragraph 3(d)(vi):                                                                                         
|    |                                                                                                                                                                      |                                                                                                                                                            
|    | (i)                                                                                                                                                                  | where
      such information is specified as a requirement of the revenue reporting
    rigs in force on 1 April 2005, from and including 1 April 2005; and
|    |                                                                                                                                                                      |                                                                                                                                                            
|16. | where
          such information is specified by the Authorit, in a direction issued
    in accordance with paragraph 10, from the date specified in that direction.
|    |                                                                                                                                                                      |                                                                                                                                                            
|    |                                                                                                                                                                      |                                                                                                                                                            

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TO BE INSERTED
  IN SECTION C

|Part
    C: Information to be provided to the Authority
|-------------------------------------------------------
|                                                       
|5.                                                     
|                                                       
|                                                       
|                                                       
|                                                       
|                                                       
|                                                       
|                                                       
|Part
    D: Audit requirements                         
|                                                       
|6.                                                     
|                                                       
|                                                       
|                                                       
|                                                       
|                                                       
|7.                                                     
|                                                       
|8.                                                     
|                                                       
|9.                                                     
|                                                       
|Part
    E: Modification of the revenue reporting rigs 
|                                                       
|10.                                                    
|                                                       

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TO BE INSERTED IN SECTION
  C

|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                         | improve
      the presentation or style of the requirements of those rigs;                                                                                                                                  
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                             
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                         | remove
      or reduce inconsistencies between distribution services providers in the
      application or interpretation of such requirements;                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                             
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                         | further
      clarify the meaning of words and phrases used within such requirements to
      define the information to be provided;                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                             
|    | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                         | improve
      the form or manner in which such information is to be provided under such
      requirements; or                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                             
|    | (e)                                                                                                                                                                                                                                                                                                                                                                                                                                                         | introduce
          additional categories of specified information or enlarge existing
          categories
      of specified information,                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | in
          such ways as are necessary to more effectively achieve the purposes
          of this condition, the Authority may, subject to paragraphs 11 to 14,
          modify the revenue reporting rigs by issuing a direction for that purpose
    to all distribution services providers.                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|11. | Before
      issuing a direction under paragraph 10, the Authority, by notice given to
      all distribution services providers, must:                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                             
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                         | state
      that it proposes to make a modification, and set out the date on which it
      proposes that this should take effect;                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                             
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                         | set
      out the text of the modification, the purpose and effect of the modification,
      and the reasons for proposing it; and                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                             
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                         | specify
          the time (not being less than 28 days from the date of the notice)
          within
      which representations or objections with respect to the proposed modification
      may be made,
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | and
          consider any representations or objections which have been duly made
    and are not withdrawn, and give reasons for its decision.                                                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|12. | Where
      any proposed modification of the revenue reporting rigs relates to a requirement
      to provide specified information to a greater level of accuracy than was
      required previously the Authority may not make that modification except
      in accordance with the procedure under section 11A of the Act which would
      apply to the modification as if it were a modification of this condition.                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|13. | Any
      modification of the revenue reporting rigs under paragraph 10 to introduce
      an additional category of specified information or to enlarge an existing
      category of information shall not exceed what may reasonably be requested
      from the licensee by the Authority under paragraph 1 of standard condition
      24 (Provision of Information to the Authority), excluding any reference
      to paragraph 8 of that condition.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|14. | The
           provisions of the revenue reporting rigs may not exceed what is necessary

      to achieve the purposes of this condition or purport to have effect with
           respect to the interpretation of any other condition of thislicence
      or the fulfilment by the licensee of any obligation imposed in respect
      of any matter which is the subject of any such condition.                                                       

---



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|Part
            F: Dealing with an event with a material impact on the consistency
    or accuracy of information
|------------------------------------------------------------------------------------------------------------------
|                                                                                                                  
|15.                                                                                                               
|                                                                                                                  
|                                                                                                                  
|                                                                                                                  
|                                                                                                                  
|                                                                                                                  
|                                                                                                                  
|                                                                                                                  
|16.                                                                                                               
|                                                                                                                  
|                                                                                                                  
|                                                                                                                  
|                                                                                                                  
|                                                                                                                  
|17.                                                                                                               
|                                                                                                                  
|                                                                                                                  
|                                                                                                                  
|                                                                                                                  
|                                                                                                                  
|                                                                                                                  
|                                                                                                                  
|Part
    G: Restatement of information                                                                            
|                                                                                                                  
|18.                                                                                                               

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|TO
      BE INSERTED IN SECTION C                                                                                                                        
|---------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                         
|Standard
      Condition 51. Incentive Schemes and Associated Information for Distributed
      Generation, Innovation Funding and Registered Power Zones
|                                                                                                                                                         
|Part
      A: General                                                                                                                                    
|                                                                                                                                                         
|1.                                                                                                                                                       
|                                                                                                                                                         
|                                                                                                                                                         
|                                                                                                                                                         
|                                                                                                                                                         
|                                                                                                                                                         
|                                                                                                                                                         
|                                                                                                                                                         
|                                                                                                                                                         
|                                                                                                                                                         
|                                                                                                                                                         
|                                                                                                                                                         
|                                                                                                                                                         
|                                                                                                                                                         
|2.                                                                                                                                                       
|                                                                                                                                                         
|Part
      B: DG rigs and specified information                                                                                                          
|                                                                                                                                                         
|3.                                                                                                                                                       
|                                                                                                                                                         
|                                                                                                                                                         
|                                                                                                                                                         
|                                                                                                                                                         

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|TO
      BE INSERTED IN SECTION C
|---------------------------------
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 
|                                 

---



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|TO
      BE INSERTED IN SECTION C                             
|--------------------------------------------------------------
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|4.                                                            
|                                                              
|                                                              
|                                                              
|                                                              
|Part
            C:Information to be provided to the Authority
|                                                              
|5.                                                            
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|Part
      D: Audit requirements                              
|                                                              
|6.                                                            
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|7.                                                            

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|TO
      BE INSERTED IN SECTION C        
|-----------------------------------------
|                                         
|                                         
|                                         
|8.                                       
|                                         
|Part
      E: Modification of the DG rigs
|                                         
|9.                                       
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|10.                                      
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|11.                                      
|                                         
|                                         
|                                         
|                                         

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TO BE INSERTED IN
  SECTION C

|    | the
      Authority may not make that modification except in accordance with the procedure
      under section 11A of the Act which would apply to the modification if it
      were a modification of this condition.                                                                                                                                                                                                                                      
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|12. | Any modification
      of the DG rigs under paragraph 9 to introduce an additional category of
      specified information or to enlarge an existing category of information
      may not include information that could not be reasonably requested from
      the licensee by the Authority under paragraph 1 of standard condition 24
      (Provision of Information to the Authority), excluding any reference to
      paragraph 8 of that condition.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|13. | The provisions
      of the DG rigs may not exceed what is reasonably required to achieve the
      purposes of this condition or purport to have effect with respect to the
      interpretation of any other condition of this licence or the fulfilment
      by the licensee of any obligation imposed in respect of any matter which
      is the subject of any such condition.                                                                       

---



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TO BE INSERTED IN
  SECTION C

|Standard
      Condition 52. Price Control Review Information
|-------------------------------------------------------------
|                                                             
|Part
      A: Application and purpose                        
|                                                             
|1.                                                           
|                                                             
|2.                                                           
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|Part
      B: Preparation of price control review information
|                                                             
|3.                                                           
|                                                             
|                                                             
|                                                             
|                                                             

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TO BE INSERTED IN
  SECTION C

|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | financial
      year as may be required under the price control review reporting rules.                                                                                                                                                                                                                                                                                                                                                                                                                                        
|----------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Part
      C: Delivery and review of price control review information  
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|4.                                                                      | Unless
      and insofar as the Authority otherwise consents, the licensee must deliver
      the price control review information to the Authority as soon as is reasonably
      practicable, and in any event not later than 31 July following the end of
      the financial year to which such information relates.                                                                                                                                                                                                                                                                     
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|5.                                                                      | The
      Authority may, in addition to any audit of the regulatory accounts of the
      licensee carried out in accordance with standard condition 42 (Regulatory
      Accounts), review, or arrange for a person nominated by the Authority (a
      reviewer) to review, matters in the price control review information
      in respect of which the Authority requires clarification.                                                                                                                                                                                              
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|6.                                                                      | Subject
      to paragraph 7, the licensee, in relation to the purposes of any review
      carried out under paragraph 5:                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                        | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | shall
      give the Authority or (as the case may be) the reviewer all such assistance
      as it or he may reasonably require; and                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                        | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | shall
      (and must procure, insofar as it is able to do so, that any affiliate or
      related undertaking of the licensee, any person by whom it procures the
      performance of any obligation under this condition and any auditor of such
      person, or of the licensee or any affiliate or related undertaking of the
      licensee, shall) cooperate fully with the Authority or (as the case may
      be) with the reviewer so as to enable him to carry out and complete his
      review for the Authority.
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|7.                                                                      | Where
      a reviewer has been nominated in accordance with paragraph 5, the licensees
      performance of its obligations under paragraph 6 in relation to the reviewer
      is conditional on the reviewers having entered into an agreement with
      the licensee to maintain confidentiality on reasonable terms.                                                                                                                                                                                                                                                                 
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Part
      D: Establishment of the price control review reporting rules
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|8.                                                                      | The
      price control review reporting rules shall be the rules of that name, issued
      by direction of the Authority in accordance with the provisions of paragraph
      9 for the purposes of this condition generally, as from time to time modified
      by the Authority in accordance with the provisions of Part F of this condition,
      and with which the licensee and every other relevant electricity distributor
      shall be required to comply for the purposes of collecting and preparing
      price control review information for submission to the Authority.
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|9.                                                                      | Before
      issuing a direction under paragraph 8, the Authority must have:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                        | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | given
      notice to all relevant electricity distributors:                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

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TO BE INSERTED IN
  SECTION C

|                                                                  |                                                                                                                                                                                                               | (ii)                                                                                                                                                                                       | setting out the
      contents of those rules and the date on which it is proposed that the direction
      should take effect, and                                            
|----------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|                                                                  |                                                                                                                                                                                                               | (iii)                                                                                                                                                                                      | specifying the
      period (not being less than 28 days from the date of the notice) within
      which representations or objections with respect to those rules may be made;
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|                                                                  | (b)                                                                                                                                                                                                           | considered
      any representations or objections which are duly made and not withdrawn;
      and                                                                                       
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|                                                                  | (c)                                                                                                                                                                                                           | given
      reasons for its decision.                                                                                                                                                     
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|10.                                                               | The
      licensee shall take all appropriate steps within its power:                                                                                                                                        
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|                                                                  | (a)                                                                                                                                                                                                           | in
      conjunction and co-operation with every other relevant electricity distributor;
      and                                                                                        
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|                                                                  | (b)                                                                                                                                                                                                           | in
      accordance with a programme of work and an associated timetable established
      and directed by the Authority in consultation with all relevant electricity
      distributors,
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|                                                                  | to
      develop the price control review reporting rules for implementation pursuant
      to this condition by 1 April 2006.                                                                               
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|Part
      E: Content of the price control review reporting rules
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|11.                                                               | Subject
      to paragraphs 12 to 15, the price control review reporting rules may, in
      relation to any requirement of this condition in respect of the price control
      review information, specify:
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|                                                                  | (a)                                                                                                                                                                                                           | the
      meaning to be applied to words and phrases (other than those defined in
      this or any other condition of this licence) used in connection with such
      information;      
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|                                                                  | (b)                                                                                                                                                                                                           | the
      methodology for calculating or deriving numbers comprising any part of such
      information;                                                                                  
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|                                                                  | (c)                                                                                                                                                                                                           | requirements
      as to the form and manner in which such information must be recorded;                                                                                                  
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|                                                                  | (d)                                                                                                                                                                                                           | requirements
      as to the standards of accuracy and reliability with which such information
      must be recorded;                                                                    
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|                                                                  | (e)                                                                                                                                                                                                           | requirements
      as to the form and the content of such information;                                                                                                                    
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|                                                                  | (f)                                                                                                                                                                                                           | requirements
      as to the manner in which such information must be provided to the Authority;
      and                                                                                
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|                                                                  | (g)                                                                                                                                                                                                           | requirements
      as to those parts of such information which may fall to be considered by
      a reviewer and the nature of that consideration,                                        
|                                                                  |                                                                                                                                                                                                               |                                                                                                                                                                                            |                                                                                                                                                                                
|                                                                  | and
      (having particular regard to the provisions of section 105 of the Utilities
      Act 2000) may also specify which (if any) of the information                                                     

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TO BE INSERTED
  IN SECTION C

| | provided under
      this condition is to be subject to publication by the Authority.
| | -------------------------------------------------------------------------------------

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|TO BE INSERTED
    IN SECTION C                                     
|--------------------------------------------------------------------
|                                                                    
|12.                                                                 
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|Part F: Modification
    of the price control review reporting rules
|                                                                    
|13.                                                                 
|                                                                    
|14.                                                                 
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|(e)                                                                 
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    

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|TO BE INSERTED
    IN SECTION C
|-------------------------------
|                               
|                               
|                               
|Part G: Interpretation         
|                               
|16.                            
|                               
|17.                            
|                               
|                               
|                               
|                               
|                               

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|TO BE INSERTED
    IN SECTION C
|-------------------------------
|                               
|                               
|                               
|1.                             
|                               
|                               
|                               
|                               
|                               
|                               
|                               
|                               
|                               
|                               
|                               
|                               
|                               
|2.                             
|                               
|                               
|                               
|                               
|                               
|                               
|                               
|3.                             
|                               
|4.                             
|                               

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