**Exhibit 4.10**

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|    |                                                   |
|---------|--------------------------------------------------------|
| **To:** | **All holders of an electricity distribution licence** |

**MODIFICATION OF THE STANDARD CONDITIONS OF ELECTRICITY DISTRIBUTION LICENCES UNDER SECTION 11A OF THE ELECTRICITY ACT 1989**

**NOTICE OF REASONS FOR THE DECISION TO MODIFY THE STANDARD CONDITIONS OF ELECTRICITY DISTRIBUTION LICENCES UNDER SECTION 49A OF THE ELECTRICITY ACT 1989**

**WHEREAS:**

| 1.     | Each      of the companies to whom this direction is addressed holds an electricity      distribution licence granted, or treated as granted, pursuant to section    6(l)(c) of the Electricity Act 1989 (the "Act").                                                                         |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                    |
| 2.     | In      accordance with section 11A(3) and (4) of the Act, the Gas and Electricity      Markets Authority (the "Authority") gave notice on 16 December      2005 (the "Notice") that it proposed to modify the standard conditions      of the electricity distributionlicences by: |
|   |                                                                                                                                                                                                                                                                                                    |   |
|   | (i).                                                                                                                                                                                                                                                                                                    | omitting standard condition 34 (Compulsory Acquisition of Land etc) and standard     condition 35 (Other Powers, etc) from Section C of the standard conditions;    and |

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|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (ii).  | inserting new standard conditions similar in content and intent to standard     condition 34 (Compulsory Acquisition of Land etc) and standard condition    35 (Other Powers, etc) in Section B of the standard conditions. |

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|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.     | In accordance with section 49A of the Act, the reasons for making the licence    modifications are set out in the following documents published by the Authorlty: |

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|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (i).   | ***Open Letter Consultation on the Application of Section C Licence Conditions for Independent Distribution Network Operators*** – March 2005, 88/05; and |

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|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|
|   | (ii).  | ***Regulation of Independent Electricity Distribution Network Operators***– Decision Document – July 2005, 176/05. |

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|     | Copies of these documents are    available from the Ofgem Research and Information Centre, 9 Millbank, London    SWlP 3GE (020 7901 7003) or the Ofgem website (www.ofgem.gov.uk).                                                                                                                                                                                                                                                                                                   |
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| 4.  | Prior to the close of the      consultation period in respect of the Notice, the Authority received six      representations in relation to the proposed licence modifications. No responses      were withdrawn. All non confidential responses are available from Ofgem      Research and Information Centre or on the Ofgem website. The Authority      has carefully considered all representations made in relation to the proposed    licence modifications and not withdrawn. |
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|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.     | No notice of objection tothe proposed licence modifications was given to the Authority within the timespecified in the Notice by a relevant licence holder.                                                                               |
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| 6.     | The Authority gave notice of its intention      to make the proposed licence modifications to the Secretary of State and      has not received a direction from the Secretary of State not to make the    proposed licence modifications. |

Therefore in accordance with the powers contained in section 11A of the Act, the Authority hereby modifies the standard conditions of electricity distribution licences in accordance with the schedule to this modification with effect on and from 22 February 2006. 

This document also constitutes    notice of reasons for the decision to modify the standard conditions of the    electricity distribution licences under section 49A of the Act. 

**The Official Seal of the      Gas and Electricity Markets Authority here affixed is authenticated bythe signature of**

| /s/ Martin Crouch Director - Distribution Authorised on behalf of the Authority |  |
|---------------------------------------------------------------------------------|--|

22 February 2006 

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**SCHEDULE**

**MODIFICATION OF THE STANDARD      CONDITIONS OF ELECTRICITY****DISTRIBUTION LICENCES UNDER SECTION 11A OF THE ELECTRICITY ACT****1989**

| 1.     | Standard condition 34 (Compulsory Acquisition of Land etc.) shall be omitted.                  |
|--------|------------------------------------------------------------------------------------------------|
|   |                                                                                           |   |
| 2.     | Standard condition 35 (Other      Powers etc.) shall be omitted.                               |
|   |                                                                                           |   |
| 3.     | After standard condition    31(Not used) there shall be inserted the following new conditions: |

|   |                                                                 |
|--------|----------------------------------------------------------------------|
|   | **Standard Condition 31A.      Compulsory Acquisition of Land etc.** |

|   |   |                                                                                                                                                                                                                                                                               |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 1.     | The powers and rights conferred by or under the provisions of Schedule 3 to the Act (Compulsory Acquisition of Land etc. by Licence Holders) shall have effect in relation to the licensee to enable the licensee to carry on the activities authorised by this licence and which: |
|   |   |                                                                                                                                                                                                                                                                               |
|   | (a)    | are comprised within its distribution    business; and                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                               |
|   | (b)    | are carried on within the      distribution services area or necessitate the use of the licensee's distribution      system, including any extension of or addition to the licensee's distribution    system, whether or not connected to such system.                             |

|   |                                                   |
|--------|--------------------------------------------------------|
|   | **Standard Condition          31B. Other Powers etc.** |

|   |   |                                                                                                                                                                                                                                                                                            |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 1.     | The powers and rights        conferred by or under the provisions of Schedule 4****to the Act        (Other Powers etc. of Licence Holders) shall have effect in relation        to the licensee to enable the licensee to carry on the activities authorised        by this licence and which: |
|   |   |                                                                                                                                                                                                                                                                                            |
|   | (a)    | are comprised within its.distribution        business; and                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                            |
|   | (b)    | are carried on within the        distribution services area or necessitate the use of the licensee's distribution        system, including any extension of or addition to the licensee's distribution        system, whether or not connected to such system.                                  |
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