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                                                                   EXHIBIT 10.03


                               essential.com, inc.

                  2000 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

     1. PURPOSE. This Non-Qualified Stock Option Plan, to be known as the 2000
Non-Employee Director Stock Option Plan (hereinafter, this "PLAN") is intended
to promote the interests of essential.com, inc. (hereinafter, the "COMPANY") by
providing an inducement to obtain and retain the services of qualified persons
who are not employees or officers of the Company to serve as members of its
Board of Directors (the "BOARD").

     2. AVAILABLE SHARES. The total number of shares of Common Stock, par value
$.01 per share, of the Company (the "COMMON STOCK") for which options may be
granted under this Plan shall not exceed 250,000 shares, subject to adjustment
in accordance with paragraph 10 (Adjustments Upon Changes in Capitalization and
Other Events) of this Plan. Shares subject to this Plan are authorized but
unissued shares or shares that were once issued and subsequently reacquired by
the Company. If any options granted under this Plan are surrendered before
exercise or lapse without exercise, in whole or in part, the shares reserved
therefor shall continue to be available under this Plan.

     3. ADMINISTRATION. This Plan shall be administered by the Board or by a
committee appointed by the Board (the "COMMITTEE"). In the event the Board fails
to appoint or refrains from appointing a Committee, the Board shall have all
power and authority to administer this Plan. In such event, the word "Committee"
wherever used herein shall be deemed to mean the Board. The Committee shall,
subject to the provisions of the Plan, have the power to construe this Plan, to
determine all questions hereunder, and to adopt and amend such rules and
regulations for the administration of this Plan as it may deem desirable. No
member of the Board or the Committee shall be liable for any action or
determination made in good faith with respect to this Plan or any option granted
under it.

     4. AUTOMATIC GRANT OF OPTIONS. Subject to the availability of shares under
this Plan, (a) each person who is or becomes a member of the Board and who is
not an employee or officer of the Company (a "NON-EMPLOYEE DIRECTOR") shall be
automatically granted on either (i) the effective date of an initial public
offering of Common Stock of the Company (the "EFFECTIVE DATE") or (ii) the date
such person is first elected to the Board after the Effective Date, without
further action by the Board, an option to purchase (x) 10,000 shares of the
Common Stock in the case of persons who are Non-Employee Directors at the
Effective Date or (y) 20,000 shares of Common Stock in the case of persons first
elected to the Board after the Effective Date, and (b) each person receiving an
option pursuant to clause (a) hereof who is a Non-Employee Director on the last
day of February and the last day of August during the term of this Plan shall be
automatically granted without further action by the Board on each such date an
option to

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purchase 1,250 shares of the Common Stock. The options to be granted under this
paragraph 4 shall be the only options ever to be granted at any time to such
member under this Plan. The number of shares covered by options granted under
this paragraph 4 shall be subject to adjustment in accordance with the
provisions of paragraph 10 (Adjustments Upon Changes in Capitalization and Other
Events) of this Plan. Notwithstanding anything to the contrary set forth herein,
if this Plan is not approved by a majority of the Company's stockholders
present, or represented, and voting at a meeting of the Stockholders or
consenting via written consent in lieu of a meeting on such matter, then the
Plan and the options granted pursuant to this Section 4 shall terminate and
become void, and no further options shall be granted under this Plan.

     5. OPTION PRICE. The purchase price of the stock covered by an option
granted pursuant to this Plan shall be 100% of the fair market value of such
shares on the day the option is granted. The option price will be subject to
adjustment in accordance with the provisions of paragraph 10 (Adjustments Upon
Changes in Capitalization and Other Events) of this Plan. For purposes of this
Plan, if, at the time an option is granted under the Plan, the Company's Common
Stock is publicly traded, "fair market value" shall be determined as of the last
business day for which the prices or quotes discussed in this sentence are
available prior to the date such option is granted and shall mean (i) the
average (on that date) of the high and low prices of the Common Stock on the
principal national securities exchange on which the Common Stock is traded, if
the Common Stock is then traded on a national securities exchange; or (ii) the
last reported sale price (on that date) of the Common Stock on the Nasdaq
National Market, if the Common Stock is not then traded on a national securities
exchange; or (iii) the closing bid price (or average of bid prices) last quoted
(on that date) by an established quotation service for over-the-counter
securities, if the Common Stock is not reported on the Nasdaq National Market
List. However, if the Common Stock is not publicly traded at the time an option
is granted under the Plan, "fair market value" shall be deemed to be the fair
value of the Common Stock as determined by the Committee after taking into
consideration all factors which it deems appropriate, including, without
limitation, recent sale and offer prices of the Common Stock in private
transactions negotiated at arm's length. For purposes of determining the "last
reported" sale price or the "last quoted" price for the foregoing provision, the
last reported or quoted prices shall mean as the case may be, at 4:00 p.m., New
York time, on that day.

     6. PERIOD OF OPTION. Unless sooner terminated in accordance with the
provisions of paragraph 8 (Termination of Option Rights) of this Plan, an option
granted hereunder shall expire on the date which is ten (10) years after the
date of grant of the option.

     7. (a) VESTING OF SHARES AND NON-TRANSFERABILITY OF OPTIONS. Options
granted under this Plan shall not be exercisable until they become vested.
Options granted under this Plan shall vest in the optionee and thus become
exercisable, in accordance with the following schedule, provided that the
optionee has continuously served as a member of the Board through such vesting
date:

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Options Granted Under Section 4(a) hereof:

           Fraction of Option
            Shares for Which
       Option Will be Exercisable                      Date of Vesting
       --------------------------                      ---------------

                  1/4th                       First, second, third and fourth
                                              anniversaries of the date of grant

Options Granted Under Section 4(b) hereof:

           Fraction of Option
            Shares for Which
       Option Will be Exercisable                      Date of Vesting
       --------------------------                      ---------------

                 1/12th                       Last day of each month over the
                                              year after the date of the grant

     The number of shares as to which options may be exercised shall be
cumulative, so that once the option shall become exercisable as to any shares it
shall continue to be exercisable as to said shares, until expiration or
termination of the option as provided in this Plan.

     (b) NON-TRANSFERABILITY. Any option granted pursuant to this Plan shall not
be assignable or transferable other than by will or the laws of descent and
distribution or pursuant to a domestic relations order and shall be exercisable
during the optionee's lifetime only by him or her.

  8. TERMINATION OF OPTION RIGHTS.

     (a) In the event an optionee ceases to be a member of the Board for any
reason other than death or permanent disability, any then unexercised portion of
options granted to such optionee shall, to the extent not then vested,
immediately terminate and become void; any portion of an option which is then
vested but has not been exercised at the time the optionee so ceases to be a
member of the Board may be exercised, to the extent it is then vested, by the
optionee within 90 days of the date the optionee ceased to be a member of the
Board; and all options shall terminate after such 90 days have expired.

     (b) In the event that an optionee ceases to be a member of the Board by
reason of his or her death or permanent disability, any option granted to such
optionee shall be immediately and automatically accelerated and become fully
vested and all unexercised options shall be exercisable by the optionee (or by
the optionee's personal representative, heir or legatee, in the event of death)
until the scheduled expiration date of the option.

  9. EXERCISE OF OPTION. Subject to the terms and conditions of this Plan and
the option agreements, an option granted hereunder shall, to the extent then
exercisable, be exercisable in


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whole or in part by giving written notice to the Company by mail or in person
addressed to essential.com, inc., Three Burlington Woods Drive, Burlington, MA
01803, at its principal executive offices, stating the number of shares with
respect to which the option is being exercised, accompanied by payment in full
for such shares. Payment may be (a) in United States dollars in cash or by
check, (b) in whole or in part in shares of the Common Stock of the Company
already owned by the person or persons exercising the option or shares subject
to the option being exercised (subject to such restrictions and guidelines as
the Board may adopt from time to time), valued at fair market value determined
in accordance with the provisions of paragraph 5 (Option Price) or (c)
consistent with applicable law, through the delivery of an assignment to the
Company of a sufficient amount of the proceeds from the sale of the Common Stock
acquired upon exercise of the option and an authorization to the broker or
selling agent to pay that amount to the Company, which sale shall be at the
participant's direction at the time of exercise. There shall be no such exercise
at any one time as to fewer than one hundred (100) shares or all of the
remaining shares then purchasable by the person or persons exercising the
option, if fewer than one hundred (100) shares. The Company's transfer agent
shall, on behalf of the Company, prepare a certificate or certificates
representing such shares acquired pursuant to exercise of the option, shall
register the optionee as the owner of such shares on the books of the Company
and shall cause the fully executed certificate(s) representing such shares to be
delivered to the optionee as soon as practicable after payment of the option
price in full. The holder of an option shall not have any rights of a
stockholder with respect to the shares covered by the option, except to the
extent that one or more certificates for such shares shall be delivered to him
or her upon the due exercise of the option.

     10. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION AND OTHER EVENTS. Upon the
occurrence of any of the following events, an optionee's rights with respect to
options granted to him or her hereunder shall be adjusted as hereinafter
provided:

          (a) STOCK DIVIDENDS AND STOCK SPLITS. If the shares of Common Stock
     shall be subdivided or combined into a greater or smaller number of shares
     or if the Company shall issue any shares of Common Stock as a stock
     dividend on its outstanding Common Stock, the number of shares of Common
     Stock deliverable upon the exercise of options shall be appropriately
     increased or decreased proportionately, and appropriate adjustments shall
     be made in the purchase price per share to reflect such subdivision,
     combination or stock dividend.

          (b) RECAPITALIZATION ADJUSTMENTS. If the Company is to be consolidated
     with or acquired by another entity in a merger, sale of all or
     substantially all of the Company's assets or otherwise, each option granted
     under this plan which is outstanding but unvested as of the effective date
     of such event shall become exercisable in full three (3) business days
     prior to the effective date of such event. In the event of a
     reorganization, recapitalization, merger, consolidation, or any other
     change in the corporate structure or shares of the Company, to the extent
     permitted by Rule 16b-3 under the Securities Exchange Act of 1934,
     adjustments in the number and kind of shares authorized by this Plan and in
     the number and kind of shares covered by, and in the option price of
     outstanding options under this Plan necessary to maintain the proportionate
     interest of the optionee and preserve, without


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     exceeding, the value of such option, shall be made. Notwithstanding the
     foregoing, no such adjustment shall be made which would, within the meaning
     of any applicable provisions of the Internal Revenue Code of 1986, as
     amended, constitute a modification, extension or renewal of any Option or a
     grant of additional benefits to the holder of an Option.

          (c) ISSUANCES OF SECURITIES. Except as expressly provided herein, no
     issuance by the Company of shares of stock of any class, or securities
     convertible into shares of stock of any class, shall affect, and no
     adjustment by reason thereof shall be made with respect to, the number or
     price of shares subject to options. No adjustments shall be made for
     dividends paid in cash or in property other than securities of the Company.

          (d) ADJUSTMENTS. Upon the happening of any of the foregoing events,
     the class and aggregate number of shares set forth in paragraphs 2
     (Available Shares) and 4 (Automatic Grant of Options) of this Plan that are
     subject to options which previously have been or subsequently may be
     granted under this Plan shall also be appropriately adjusted to reflect
     such events. The Board shall determine the specific adjustments to be made
     under this paragraph 10 and its determination shall be conclusive.

     11. RESTRICTIONS ON ISSUANCE OF SHARES. Notwithstanding the provisions of
paragraphs 4 (Automatic Grant of Options) and 9 (Exercise of Option) of this
Plan, the Company shall have no obligation to deliver any certificate or
certificates upon exercise of an option until one of the following conditions
shall be satisfied:

          (i) The issuance of shares with respect to which the option has been
     exercised is at the time of the issue of such shares effectively registered
     under applicable Federal and state securities laws as now in force or
     hereafter amended; or

          (ii) Counsel for the Company shall have given an opinion that the
     issuance of such shares is exempt from registration under Federal and state
     securities laws as now in force or hereafter amended; and the Company has
     complied with all applicable laws and regulations with respect thereto,
     including without limitation all regulations required by any stock exchange
     upon which the Company's outstanding Common Stock is then listed.

     12. LEGEND ON CERTIFICATES. The certificates representing shares issued
pursuant to the exercise of an option granted hereunder shall carry such
appropriate legend, and such written instructions shall be given to the
Company's transfer agent, as may be deemed necessary or advisable by counsel to
the Company in order to comply with the requirements of the Securities Act of
1933 or any state securities laws.

     13. REPRESENTATION OF OPTIONEE. If requested by the Company, the optionee
shall deliver to the Company written representations and warranties upon
exercise of the option that are necessary to show compliance with Federal and
state securities laws, including representations and warranties to the effect
that a purchase of shares under the option is made for investment and not with a
view to their distribution (as that term is used in the Securities Act of 1933).


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     14. OPTION AGREEMENT. Each option granted under the provisions of this Plan
shall be evidenced by an option agreement, which agreement shall be duly
executed and delivered on behalf of the Company and by the optionee to whom such
option is granted. The option agreement shall contain such terms, provisions and
conditions not inconsistent with this Plan as may be determined by the officer
executing it.

     15. TERMINATION AND AMENDMENT OF PLAN. Options may no longer be granted
under this Plan after April 6, 2010, and this Plan shall terminate when all
options granted or to be granted hereunder are no longer outstanding. The Board
may at any time terminate this Plan or make such modification or amendment
thereof as it deems advisable; PROVIDED, HOWEVER, that the Board may not,
without approval of the stockholders, (a) increase the maximum number of shares
for which options may be granted under this Plan (except by adjustment pursuant
to Section 10 (Adjustment Upon Changes in Capitalization and Other Events)), (b)
materially modify the requirements as to eligibility to participate in this Plan
or (c) materially increase benefits accruing to option holders under this Plan.
Termination or any modification or amendment of this Plan shall not, without
consent of a participant, affect his or her rights under an option previously
granted to him or her.

     16. WITHHOLDING OF INCOME TAXES. Upon the exercise of an option, the
Company, in accordance with Section 3402(a) of the Internal Revenue Code of
1986, as amended, and any other applicable withholding requirements, may
require the optionee to pay withholding taxes in respect of amounts considered
to be compensation includible in the optionee's gross income.

     17. COMPLIANCE WITH REGULATIONS. It is the Company's intent that the Plan
comply in all respects with Rule 16b-3 under the Securities Exchange Act of 1934
(or any successor or amended provision thereof) and any applicable Securities
and Exchange Commission interpretations thereof. If any provision of this Plan
is deemed not to be in compliance with Rule 16b-3, the provision shall be null
and void.

     18. GOVERNING LAW. The validity and construction of this Plan and the
instruments evidencing options shall be governed by the laws of the State of
Delaware, without giving effect to the principles of conflicts of law thereof.


Date Approved by Board of Directors of the Company:       April 6, 2000

Date Approved by Stockholders of the Company:             [              ], 2000
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