Document:

<PAGE>

                                                                  EXHIBIT 4(zzz)

                              TXU EUROPE GROUP PLC
                               TXU EUROPE LIMITED

                              OFFICER'S CERTIFICATE

          Kirk R. Oliver, an authorized attorney of TXU EUROPE GROUP PLC, a
public limited company duly incorporated and existing under the laws of England
and Wales (the "Company"), pursuant to the authority granted in the Board
Resolutions of the Company dated March 1, 2000, and Sections 102, 201 and 301 of
the Indenture defined herein, and Kirk R. Oliver, an authorized attorney of TXU
EUROPE LIMITED, a private limited company duly incorporated and existing under
the laws of England and Wales (the "Guarantor"), pursuant to the authority
granted in the Board Resolutions of the Guarantor, dated March 1, 2000 and
Section 201 of the Indenture defined herein, do hereby certify to The Bank of
New York, as Trustee (the "Trustee") under the Indenture of the Company (For
Unsecured Subordinated Debt Securities) dated as of March 2, 2000 (the
"Indenture") that:

1.        The securities of the first series to be issued under the Indenture
          shall be designated "9.75% Junior Subordinated Deferrable Interest
          Debentures, Series A due March 2, 2020" (the "Debentures of the First
          Series"). The Debentures of the First Series will be unconditionally
          and irrevocably guaranteed by the Guarantor, as to payment of
          principal, premium, if any, and interest and Additional Amounts, if
          any. All capitalized terms used in this certificate which are not
          defined herein but are defined in Exhibit A shall have the meanings
          therein; all capitalized terms used in this certificate or Exhibit A
          which are not defined herein or therein but are defined in the
          Indenture shall have the meanings set forth in the Indenture.

2.        The Debentures of the First Series initially shall be issued in bearer
          form, shall have such terms and provisions as are provided herein, in
          the Indenture and in the form thereof set forth in Exhibit A hereto,
          and shall be issued in substantially such form.

3.        The Debentures of the First Series shall mature and the principal
          shall be due and payable together with all accrued and unpaid interest
          thereon on March 2, 2020.

4.        The Debentures of the First Series shall be issued in the
          denominations of $25 and in integral multiples of $25 in excess
          thereof.

5.        The Debentures of the First Series shall bear interest as provided in
          Exhibit A.

6.        Each installment of interest on a Debenture of the First Series shall
          be payable on the dates specified in Exhibit A.

7.        The principal of (and premium, if any, on) and each installment of
          interest on and any other amounts payable on the Debentures of the
          First Series shall be payable at, and exchanges in respect of the
          Debentures of the First Series may be effected at, the office or
          agency of the Company in The City of New York and, for so long as the
          Debentures of the First Series are listed on the Luxembourg Stock
          Exchange, at the agency of the Company in Luxembourg. Interest shall
          be paid upon presentation of the applicable Debenture of such Series
<PAGE>

          to a Paying Agent or the Trustee on or after the date specified for
          payment of such interest; the Paying Agent or the Trustee shall mark
          the original Debenture of such Series in the appropriate box on the
          interest payment schedule included therein to indicate that the
          interest payment has been made.

8.        Notices and demands to or upon the Company or the Guarantor in respect
          of the Debentures of the First Series may be served at the office or
          agency of the Company in The City of New York.

9.        TXU Business Services Company will initially be the Paying Agent and
          the Transfer Agent of the Company in The City of New York with respect
          to the Debentures of the First Series and the Company hereby appoints
          TXU Business Services Company as its agent for all such purposes; the
          Corporate Trust Office of the Trustee will initially be the agency of
          the Company in The City of New York for exchanges and service of
          notices and demands with respect to the Debentures of the First Series
          and the Company hereby appoints the Trustee as its agent for all such
          purposes; and the Corporate Trust Office of Kredietbank SA
          Luxembourgeoise ("Kredietbank") at 43, Boulevard Royal L-2955,
          Luxembourg, initially will be the Paying Agent and Transfer Agent of
          the Company in Luxembourg; provided, however, that the Company
          reserves the right to change, by one or more Officer's Certificates,
          any such office or agency and such agent, provided the Company will
          always have a paying agent location in The City of New York and, for
          so long as any Debentures of the First Series are listed on the
          Luxembourg Stock Exchange, in Luxembourg. TXU Business Services
          Company initially will be the Security Registrar for the Debentures of
          the First Series. Neither the Company nor the Guarantor shall serve as
          Paying Agent for the Debentures of the First Series. The Company will
          not appoint any Paying Agent for the Debentures of the First Series in
          the United Kingdom.

10.       The following constitute additional Events of Default with respect to
          the Debentures of the First Series:

               Failure of the Company or the Guarantor to pay Additional Amounts
               (as defined herein) on any Debenture of the First Series within
               30 days after it is due.

11.       The Debentures of the First Series will be redeemable as provided in
          the form thereof attached hereto as Exhibit A.

12.       Notwithstanding Sections 106 and 404 of the Indenture and any other
          provisions of the Indenture, notice to a Holder of Debentures of the
          First Series in bearer form shall be given sufficiently if given as
          provided in the form thereof attached hereto as Exhibit A.

13.       The Debentures of the First Series will be initially issued as one or
          more Debentures of the First Series in bearer form and shall be issued
          to the Book-Entry Depositary (as defined in the Deposit Agreement by
          and between The Bank of New York, as Book-Entry Depositary, and the
          Company, as Issuer, dated as of March 2, 2000 (the "Deposit
          Agreement"). Nothing in the Indenture, the Debentures of the First
          Series or this certificate shall be construed to require the Company
          to register any Debentures of the First Series under the Securities
          Act, unless otherwise expressly agreed by the Company, confirmed in

                                       2
<PAGE>

          writing to the Trustee, or to make any transfer of such Debentures of
          the First Series in violation of applicable law. In the event that the
          Book-Entry Depositary resigns and no successor has been appointed by
          the Company within 120 days, then, upon the request of the Book-Entry
          Depositary and the surrender to the Trustee of all Debentures of the
          First Series in bearer form held by the Book-Entry Depositary, the
          Company shall execute and the Trustee shall authenticate and deliver
          to the Book-Entry Depositary Debentures of the First Series,
          substantially in the form of Exhibit B hereto, in an aggregate
          principal amount equal to the aggregate principal amount of Debentures
          of the First Series so surrendered, in one or more certificates in the
          principal amounts and registered in the names requested by the
          Book-Entry Depositary.

14.       The Trustee, the Security Registrar and the Company will have no
          responsibility under the Indenture for transfers of beneficial
          interests in the Debentures of the First Series.

15.       No service charge shall be made for the transfer or exchange of the
          Debentures of the First Series; provided, however, that the Company
          may require payment of a sum sufficient to cover any tax or other
          governmental charge that may be imposed in connection with the
          exchange or transfer.

16.       Additional Amounts. All payments of principal and interest (including
          ------------------
          payments of discount and premium, if any) with respect to the
          Debentures of the First Series and all payments made pursuant to the
          Guarantee shall be made free and clear of, and without withholding or
          deduction for or on account of, any present or future taxes, duties,
          assessments or other governmental charges of whatever nature imposed,
          levied, collected, withheld or assessed by or within any Jurisdiction
          of Incorporation (or any political subdivision or taxing authority
          thereof or therein) or any jurisdiction in which the Company or the
          Guarantor is managed or controlled or has a place of business or by or
          within any political subdivision thereof or any authority therein or
          thereof having power to tax, unless such withholding or deduction is
          required by law. In the event of any such withholding or deduction,
          the Company or the Guarantor, as the case may be, shall pay to each
          Holder of such Debentures of the First Series as Additional Amounts
          under the Indenture such additional amounts as shall be necessary so
          that the net amount received by each Holder after withholding or
          deduction shall equal the amount that would otherwise have been due to
          such Holder in the absence of such withholding or deduction.

17.       Enforcement of Rights by Holders of Preferred Partnership Securities:
          --------------------------------------------------------------------
          TXU Europe Funding I, L.P., a Delaware limited partnership, shall be
          the Partnership for the Debentures of the First Series. The Agreement
          of Limited Partnership for the Debentures of the First Series shall be
          the Amended and Restated Agreement of Limited Partnership dated March
          2, 2000 relating to the Partnership, as it may be amended from time to
          time. If the Special Representative appointed pursuant to the
          Agreement of Limited Partnership fails to enforce its rights on behalf
          of the Partnership in the Debentures of the First Series or
          Guarantor's Guarantee of the Debentures of the First Series after a
          holder of Preferred Partnership Securities issued under the Agreement
          of Limited Partnership has made a written request, the holder of
          record of those Preferred Partnership Securities, as a third party
          beneficiary, may directly institute a legal proceeding against the
          Company or the Guarantor to enforce the rights of the Special
          Representative and the Partnership in the Debentures of the First

                                       3
<PAGE>

          Series or Guarantor's Guarantee thereof, as the case may be, without
          first instituting any legal proceeding against the Special
          Representative, the Partnership or any other person or entity. In any
          event, if a Partnership Enforcement Event (as defined in the Agreement
          of Limited Partnership) has occurred and is continuing and that event
          is attributable to the failure of the Company to make any required
          payment when due on any Debenture of the First Series or the failure
          of Guarantor to make any required payment when due on its Guarantee of
          a Debenture of the First Series, then a holder of record of Preferred
          Partnership Securities, as a third party beneficiary, may on behalf of
          the Partnership directly institute a proceeding against the Company
          with respect to that Debenture of the First Series or against
          Guarantor with respect to that Guarantee, in each case for enforcement
          of payment to the Holder of all amounts due under that Debenture of
          the First Series or that Guarantee.

18.       Enforcement of Rights by Holders of Preferred Trust Securities: The
         ---------------------------------------------------------------
          Trust for Debentures of the First Series shall be TXU Europe Capital
          I, a Delaware statutory business trust. The Trust Agreement for
          Debentures of the First Series shall be the Amended and Restated Trust
          Agreement dated as of March 2, 2000 relating to the Trust, as it may
          be amended from time to time. For so long as the Trust holds any
          Preferred Partnership Securities, if the Special Representative
          appointed pursuant to the Agreement of Limited Partnership fails to
          enforce its rights on behalf of the Partnership in the Debentures of
          the First Series or Guarantor's Guarantee thereof after a holder of
          Preferred Trust Securities issued by the Trust has made a written
          request, a holder of record of those Preferred Trust Securities, as a
          third party beneficiary, may on behalf of the Partnership directly
          institute a legal proceeding against the Company or the Guarantor,
          without first instituting any legal proceeding against the Property
          Trustee under the Trust, the Trust, the Special Representative, the
          Partnership or any other Person, to enforce the rights of the Special
          Representative and the Partnership in the Debentures of the First
          Series or the Guarantor's Guarantee thereof. In any event, for so long
          as the Trust is the holder of any Preferred Partnership Securities, if
          a Trust Enforcement Event (as defined in the Trust Agreement) has
          occurred and is continuing and that Trust Enforcement Event is
          attributable to the failure of the Company to make any required
          payment when due on any Debenture of the First Series or the failure
          of Guarantor to make any required payment when due on its Guarantee of
          a Debenture of the First Series, then a holder of record of those
          Preferred Trust Securities, as a third party beneficiary, may on
          behalf of the Partnership directly institute a proceeding against the
          Company with respect to that Debenture of the First Series or against
          Guarantor with respect to that Guarantee, in each case for enforcement
          of payment to the Holder of all amounts due under that Debenture of
          the First Series or that Guarantee.

19.       If the Company shall make any deposit of money and/or Eligible
          Obligations with respect to any Debentures of the First Series, or any
          portion of the principal amount thereof, as contemplated by Section
          701 of the Indenture, the Company shall not deliver an Officer's
          Certificate described in clause (z) in the first paragraph of said
          Section 701 unless the Company shall also deliver to the Trustee,
          together with such Officer's Certificate, either:

          (A)  an instrument wherein the Company, notwithstanding the
               satisfaction and discharge of its indebtedness in respect of the
               Debentures of the First Series, shall assume the obligation

                                       4
<PAGE>

               (which shall be absolute, unconditional and guaranteed to the
               same extent as were the obligations of the Company under the
               Debentures of the First Series) to irrevocably deposit with the
               Trustee or Paying Agent such additional sums of money, if any, or
               additional Eligible Obligations (meeting the requirements of
               Section 701), if any, or any combination thereof, at such time or
               times, as shall be necessary, together with the money and/or
               Eligible Obligations theretofore so deposited, to pay when due
               the principal of and premium, if any, and interest due and to
               become due and Additional Amounts, if any, due and known to
               become due on such Debentures of the First Series or portions
               thereof, all in accordance with and subject to the provisions of
               said Section 701; provided, however, that such instrument may
               state that the obligation of the Company to make additional
               deposits as aforesaid shall be subject to the delivery to the
               Company by the Trustee of a notice asserting the deficiency
               accompanied by an opinion of an independent public accountant of
               nationally recognized standing, selected by the Trustee, showing
               the calculation thereof; or

          (B)  an Opinion of Counsel to the effect that, as a result of a change
               in law occurring after the date of this certificate, the Holders
               of such Debentures of the First Series, or portions of the
               principal amount thereof, will not recognize income, gain or loss
               for United States federal income tax purposes as a result of the
               satisfaction and discharge of the Company's indebtedness in
               respect thereof and will be subject to United States federal
               income tax on the same amounts, at the same times and in the same
               manner as if such satisfaction and discharge had not been
               effected.

20.       The Company reserves the right to require legends on Debentures of the
          First Series as it may determine are necessary to ensure compliance
          with the securities laws of the United States and the states therein
          and any other applicable laws.

21.       Each of the undersigned has read all of the covenants and conditions
          contained in the Indenture, and the definitions in the Indenture
          relating thereto, relating to the issuance of the Debentures of the
          First Series and the Guarantee endorsed thereon and in respect of
          compliance with which this certificate is made.

22.       The statements contained in this certificate are based upon the
          familiarity of each of the undersigned with the Indenture, the
          documents accompanying this certificate, and upon discussions by each
          of the undersigned with officers and employees of the Company and the
          Guarantor familiar with the matters set forth herein.

23.       In the opinion of each of the undersigned, he has made such
          examination or investigation as is necessary to enable him to express
          an informed opinion whether or not such covenants and conditions have
          been complied with.

24.       In the opinion of each of the undersigned, such conditions and
          covenants and conditions precedent, if any (including any covenants
          compliance with which constitutes a condition precedent) provided for
          in the Indenture to the authentication and delivery of the Debentures

                                       5
<PAGE>

          of the First Series and the Guarantee to be endorsed thereon requested
          in the accompanying Company Order and Guarantor Order, have been
          complied with.

                                       6
<PAGE>

          IN WITNESS WHEREOF, the undersigned have executed this Officer's
Certificate as of this 2nd day of March, 2000.

                                        TXU EUROPE GROUP PLC

                                        /s/ Kirk R. Oliver
                                        ----------------------------------------
                                        Name:  Kirk R. Oliver
                                        Title: Authorized Attorney

                                        TXU EUROPE LIMITED

                                        /s/ Kirk R. Oliver
                                        ----------------------------------------
                                        Name:  Kirk R. Oliver
                                        Title: Authorized Attorney

                                       7
<PAGE>

                                                                       EXHIBIT A

                           [FORM OF FACE OF DEBENTURE]

                                   BEARER FORM

NO.o                                                                [ISIN NO. o]

                              TXU EUROPE GROUP PLC

          9.75% Junior Subordinated Deferrable Interest Debentures, Series A due
March 2, 2020

          TXU EUROPE GROUP PLC, a public limited company duly incorporated and
existing under the laws of England and Wales (herein referred to as the
"Company", which term includes any successor Person under the Indenture), for
value received, hereby promises to pay to the bearer upon surrender hereof the
principal sum of $________ Dollars on March 2, 2020 and, except as hereinafter
provided, to pay interest on said principal sum quarterly in arrears on March
31, June 30, September 30, and December 31 of each year (each an Interest
Payment Date) unless the Company defers the payment of interest as described
herein under the paragraph entitled Option to Defer Interest Payment Period.
Interest shall be payable at the rate of 9.75% per annum until the principal
hereof is paid or made available for payment. Interest on the Securities of this
series shall be computed on the basis of a 360-day year consisting of twelve
30-day months and for any period shorter than a full quarter, on the basis of
the actual number of days elapsed in such period. Interest on the Securities of
this series will accrue from March 2, 2000, to the first Interest Payment Date
(which shall be June 30, 2000), and thereafter will accrue from the last
Interest Payment Date to which interest has been paid or duly provided for. In
the event that any Interest Payment Date is not a Business Day, then payment of
interest payable on such date will be made on the next succeeding day which is a
Business Day (and without any interest or other payment in respect of such
delay) with the same force and effect as if made on the Interest Payment Date;
except that, if such Business day is in the next succeeding calendar year, the
payment will be made on the immediately preceding Business Day (without any
reduction of interest or other payment in respect of such early payment) with
the same force and effect as if made on the Interest Payment Date. The interest
so payable, and punctually paid or duly provided for, on any Interest Payment
Date will be paid upon presentation to any Paying Agent; such Paying Agent shall
mark this Security in the appropriate box on the Interest Payment Schedule
included therein to indicate that the interest payment has been made. Payments
of any Defaulted Interest will be paid to the bearer hereof at the time of
presentation.

          Payment of the principal of (and premium, if any) and interest on this
Security will be made at the office or agency of the Company maintained for that
purpose in The City of New York, the State of New York and, for so long as the
Securities of this series shall be listed on the Luxembourg Stock Exchange, in
Luxembourg, in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts.

                                       8
<PAGE>

          Reference is hereby made to the further provisions of this Security
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

          Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

                                        TXU EUROPE GROUP PLC

                                        By:
                                           -------------------------------------

                               [FORM OF GUARANTEE]

          TXU EUROPE LIMITED, a corporation incorporated under the laws of
England and Wales (the "Guarantor", which term includes any successor under the
Indenture (the "Indenture") referred to in the Security upon which this
Guarantee is endorsed), for value received, hereby unconditionally and
irrevocably guarantees to the Holder of the Security upon which this Guarantee
is endorsed, the due and punctual payment of the principal of, and premium, if
any, and interest and Additional Amounts, if any, on such Security when and as
the same shall become due and payable, whether at the Stated Maturity, by
declaration of acceleration, call for redemption, or otherwise, in accordance
with the terms of such Security and of the Indenture, regardless of any defense,
right of set-off or counterclaim that the Guarantor may have (except the defense
of payment). In case of the failure of TXU EUROPE GROUP PLC, a public limited
company incorporated under the laws of England and Wales (the "Company", which
term includes any successor under the Indenture), punctually to make any such
payment, the Guarantor hereby agrees to cause such payment to be made punctually
when and as the same shall become due and payable, whether at the Stated
Maturity or by declaration of acceleration, call for redemption or otherwise,
and as if such payment were made by the Company. The Guarantor's obligation to
make a guarantee payment may be satisfied by direct payment of the required
amounts by the Guarantor to the Holder of such Security or to a Paying Agent, or
by causing the Company to pay such amount to such Holder or a Paying Agent.

          This Guarantee is an unsecured and subordinated obligation of the
Guarantor and shall at all times rank at least equally with each other Guarantee
issued pursuant to the Indenture and, except as permitted by Section 806 of the
Indenture, will rank at least equally with all other unsecured subordinated
indebtedness of the Guarantor.

          The Guarantor hereby agrees that its obligations hereunder shall be
absolute, unconditional and irrevocable irrespective of, and shall be unaffected
by, any invalidity, irregularity or unenforceability of such Security or the
Indenture, any failure to enforce the provisions of such Security or the
Indenture, any extension of time for payment or performance by the Company as
provided by such Security or the Indenture, or any waiver, modification or

                                       9
<PAGE>

indulgence granted to the Company with respect thereto, by the Holder of such
Security or the Trustee or any other circumstance which may otherwise constitute
a legal or equitable discharge or defense of a surety or guarantor; provided,
however, that notwithstanding the foregoing, no such waiver, modification or
indulgence shall, without the consent of the Guarantor, increase the principal
amount of such Security, or increase the interest rate thereon, or change any
redemption provisions thereof (including any change to increase any premium
payable upon redemption thereof) or change the Stated Maturity thereof.

          The Guarantor hereby waives the benefits of diligence, presentment,
demand for payment, any requirement that the Trustee or the Holder of such
Security exhaust any right or take any action against the Company or any other
Person, the filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the
Company, protest or notice with respect to such Security or the indebtedness
evidenced thereby and all demands whatsoever, and covenants that this Guarantee
will not be discharged in respect of such Security except by complete
performance of the obligations contained in such Security and in this Indenture
and in this Guarantee. This Guarantee shall constitute a guarantee of payment
and not of collection. The Guarantor hereby agrees that, in the event of a
default in payment of principal, or premium, if any, or interest or Additional
Amounts, if any, on such Security, whether at its Stated Maturity, by
declaration of acceleration, call for redemption, or otherwise, legal
proceedings may be instituted by the Trustee on behalf of, or by, the Holder of
such Security, subject to the terms and conditions set forth in the Indenture,
directly against the Guarantor to enforce this Guarantee without first
proceeding against the Company. The Guarantor agrees that if, after the
occurrence and during the continuance of an Event of Default, the Trustee or any
of the Holders are prevented by applicable law from exercising their respective
rights to accelerate the maturity of the Securities, to collect interest on the
Securities, or to enforce or exercise any other right or remedy with respect to
the Securities, the Guarantor will pay to the Trustee for the account of the
Holders, upon demand therefor, the amount that would otherwise have been due and
payable had such rights been permitted to be exercised by the Trustee or any of
the Holders.

          The obligations of the Guarantor hereunder with respect to such
Security shall be continuing and irrevocable until the date upon which the
entire principal of, premium, if any, and interest and Additional Amounts, if
any, on such Security has been, or has been deemed pursuant to the provisions of
Article Seven of the Indenture to have been, paid in full or otherwise
discharged.

          The Guarantor shall be subrogated to all rights of the Holder of each
Security upon which its Guarantee is endorsed against the Company in respect of
any amounts paid by the Guarantor on account of such Security pursuant to the
provisions of its Guarantee or the Indenture; provided, however, that the
Guarantor shall not be entitled to enforce or to receive any payments arising
out of, or based upon, such right of subrogation until the principal of, and
premium, if any, and interest, if any, and Additional Amounts, if any, on all
Securities issued under the Indenture shall have been paid in full.

          This Guarantee shall remain in full force and effect and continue
notwithstanding any petition filed by or against the Company for liquidation or
reorganization, the Company becoming insolvent or making an assignment for the
benefit of creditors or a receiver or trustee being appointed for all or any

                                       10
<PAGE>

significant part of the Company's assets, and shall, to the fullest extent
permitted by law, continue to be effective or reinstated, as the case may be, if
at any time payment of the Security upon which this Guarantee is endorsed, is,
pursuant to applicable law, rescinded or reduced in amount, or must otherwise be
restored or returned by the Holder of such Security, whether as a "voidable
preference," "fraudulent transfer," or otherwise, all as though such payment or
performance had not been made. In the event that any payment, or any part
thereof, is rescinded, reduced, restored or returned on such Security, such
Security shall, to the fullest extent permitted by law, be reinstated and deemed
paid only by such amount paid and not so rescinded, reduced, restored or
returned.

          This Guarantee shall not be valid or obligatory for any purpose until
the certificate of authentication of the Security upon which this Guarantee is
endorsed shall have been manually executed by or on behalf of the Trustee under
the Indenture.

          All terms used in this Guarantee which are defined in the Indenture
shall have the meanings assigned to them in such Indenture.

          This Guarantee shall be deemed to be a contract made under the laws of
the State of New York, and for all purposes shall be governed by and construed
in accordance with the laws of the State of New York.

          IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be
executed as of the date first written above.

                                        TXU EUROPE LIMITED

                                        By:
                                           -------------------------------------

                     [FORM OF CERTIFICATE OF AUTHENTICATION]

                          CERTIFICATE OF AUTHENTICATION

Dated:

          This is one of the Securities of the series designated therein and the
Guarantee thereof referred to in the within-mentioned Indenture.

                                        THE BANK OF NEW YORK, as Trustee

                                        By:
                                           -------------------------------------
                                                  Authorized Signatory

                                       11
<PAGE>

                         [FORM OF REVERSE OF DEBENTURE]

          This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture (For Unsecured Subordinated Debt Securities), dated as
of March 2, 2000 (herein, together with any amendments thereto, called the
"Indenture", which term shall have the meaning assigned to it in such
instrument), among the Company, TXU EUROPE LIMITED, as Guarantor (herein called
the "Guarantor," which term includes any successor under the Indenture) and The
Bank of New York, as Trustee (herein called the "Trustee", which term includes
any successor trustee under the Indenture), and reference is hereby made to the
Indenture, including the Board Resolutions and Officer's Certificate filed with
the Trustee on March 2, 2000, creating the series designated on the face hereof,
for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Guarantor, the Trustee and the Holders
of the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on
the face hereof.

          The Securities of this series will be redeemable at the option of the
Company:

          (a)  in whole and from time to time in part at any time on or after
               March 2, 2005; and

          (b)  in whole but not in part if the Company certifies to the Trustee
               in an Officer's Certificate delivered to the Trustee prior to the
               giving of a notice as provided below that a Partnership Special
               Event has occurred under the Agreement of Limited Partnership.

in each case upon not less than 30 nor more than 60 days' notice given as
provided herein and at a Redemption Price equal to 100% of the principal amount
thereof plus accrued and unpaid interest thereon and accrued and unpaid
Additional Amounts with respect thereto, if any, to the Redemption Date.

          The Trustee shall accept, and shall be fully protected in relying
upon, such certificate as sufficient evidence of the condition precedent set out
in (b) above, in which event it shall be conclusive and binding on the Holders.

          Upon payment of the Redemption Price, on and after the Redemption Date
interest and any Additional Amounts will cease to accrue on the Securities of
this series or portions thereof called for redemption.

          Except as provided herein, Article Four of the Indenture shall apply
to redemptions of the Securities of this series.

          Any notice required by the Indenture or this Security to be given to
the Holder of this Security, including but not limited to any notice of
redemption of this Security, shall be sufficiently given, and deemed given, if
given as follows:

                                       12
<PAGE>

          (i)  in writing delivered by hand, mail or telefax to the bearer of
               this Security so long as the Trustee knows the name and address
               or telefax of the bearer of this Security;

          (ii)by publication in a leading daily newspaper having general
               circulation in Luxembourg (which is expected to be the
               Luxemburger Wort) so long as the Securities of this series are
               listed on the Luxembourg Stock Exchange and the rules of the
               Luxembourg Stock Exchange so require; and

          (iii) in such manner as the Trustee deems necessary or desirable if
               the Trustee does not know the name and address or telefax of the
               bearer of this Security and the Securities of this series are not
               listed on the Luxembourg Stock Exchange.

          The indebtedness evidenced by this Security is, to the extent provided
in the Indenture, subordinated and subject in right of payment to the prior
payment in full of all Senior Indebtedness, and this Security is issued subject
to the provisions of the Indenture with respect thereto. Each Holder of this
Security, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on his behalf to take such
action as may be necessary or appropriate to acknowledge or effectuate the
subordination so provided and (c) appoints the Trustee his attorney-in-fact for
any and all such purposes. Each Holder hereof, by his acceptance hereof, hereby
waives all notice of the acceptance of the subordination provisions contained
herein and in the Indenture by each holder of Senior Indebtedness, whether now
outstanding or hereafter incurred, and waives reliance by each such Holder upon
said provisions.

          The Indenture contains provisions for defeasance at any time of the
entire indebtedness of this Security upon compliance with certain conditions set
forth in the Indenture including the Officer's Certificate described above.

          If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.

          The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of all series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

          As provided in and subject to the provisions of the Indenture, the
Holder of this Security shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or

                                       13
<PAGE>

for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of a majority in aggregate principal
amount of the Securities of all series at the time Outstanding in respect of
which an Event of Default shall have occurred and be continuing shall have made
written request to the Trustee to institute proceedings in respect of such Event
of Default as Trustee and offered the Trustee reasonable indemnity, and the
Trustee shall not have received from the Holders of a majority in aggregate
principal amount of Securities of all series at the time Outstanding in respect
of which an Event of Default shall have occurred and be continuing a direction
inconsistent with such request, and shall have failed to institute any such
proceeding, for 60 days after receipt of such notice, request and offer of
indemnity. The foregoing shall not apply to any suit instituted by the Holder of
this Security for the enforcement of any payment of principal hereof or any
premium or interest hereon on or after the respective due dates expressed
herein.

          No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of and any premium and
interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

Option to Defer Interest Payment Period
---------------------------------------

          Pursuant to Section 312 of the Indenture, so long as the Company is
not in default in the payment of interest on the Securities of any series under
the Indenture, the Company shall have the right, at any time and from time to
time during the term of the Securities of this series, to defer the payment of
interest for a period not exceeding six consecutive quarterly periods (a
"Deferral Period") during which period interest (calculated for each period
from, and including, an Interest Payment Date to, but excluding the next
succeeding Interest Payment Date (an "Interest Period"), except that the first
Interest Period shall commence on March 2, 2000, in the manner described in the
first paragraph of this Debenture, as if the interest payment period had not
been so extended) will be compounded quarterly. At the end of the Deferral
Period, the Company shall pay all interest accrued and unpaid hereon (together
with interest thereon at the rate specified for the Securities of this series,
compounded quarterly, to the extent permitted by applicable law) and Additional
Interest, if any. Prior to the termination of any Deferral Period, the Company
may further defer the payment of interest for an additional Deferral Period,
provided that such Deferral Period together with all such previous and further
extensions thereof shall not exceed six consecutive quarterly periods at any one
time or extend beyond the Maturity of the Securities of this series. Upon the
termination of any Deferral Period and the payment of all amounts then due,
including interest on deferred interest payments, the Company may elect to begin
a new Deferral Period, subject to the above requirements. No interest shall be
due and payable during a Deferral Period, except at the end thereof. The Company
shall give the Trustee notice of its election to defer interest payments prior
to the earlier of (i) one Business Day prior to the record date for the
distribution which would occur but for such election or (ii) the date the
Company is required to give notice to any securities exchange on which the
Securities may be listed or any other applicable self-regulatory organization of
the record date.

          The Indenture contains terms, provisions and conditions relating to
the consolidation or merger of the Company or the Guarantor with or into, and
the conveyance or other transfer, or lease, of assets to another Person and to

                                       14
<PAGE>

the release and discharge of the Company or the Guarantor, as the case may be,
in certain circumstances from such obligations.

          The Securities of this series are issuable only in registered form
without coupons in denominations of $25 and in integral multiples of $25 in
excess thereof. As provided in the Indenture and subject to certain limitations
therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor and of
authorized denominations, as requested by the Holder surrendering the same.

          No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.

          The bearer of this Security shall be treated as the owner of it for
all purposes, subject to the terms of the Indenture. As provided in the
Indenture and subject to certain limitations therein set forth, Securities of
this series are exchangeable for a like aggregate principal amount of Securities
of this series and of like tenor of a different authorized denomination, as
requested by the Holder surrendering the same.

          All terms used in this Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture and in the Officer's
Certificate establishing the terms of the Securities of this series.

INTEREST PAYMENT SCHEDULE

          Instructions to Paying Agent: Mark the box across from the appropriate
Interest Payment Date when the interest payable on such date has been paid.

Interest Payment Date                       (Mark When Interest is Paid)
---------------------                       ---------------------------

June 30, 2000

September 30, 2000

December 31, 2000

***[insert intervening dates]

December 31, 2019

PRINCIPAL PAYMENT SCHEDULE

                    PRINCIPAL AMOUNT OF THIS BEARER DEBENTURE

                                       15
<PAGE>

The outstanding aggregate principal amount of this Bearer Debenture is initially
as shown on the face of this Bearer Debenture and, pursuant thereto, by the
latest entry made by or on behalf of the Issuer in the third column below.
Reductions in the principal amount of this Bearer Debenture following, among
other things, partial redemptions or exchange of an interest in this Bearer
Debenture for another Bearer Debenture of this series of Securities, and
increases in the principal amount of this Bearer Debenture following exchange of
an interest in another Bearer Debenture of this series for an interest in this
Bearer Debenture, are entered in the second column below.

Date      Amount of      Outstanding         Trustee's Authentication
----     (reduction)/   principal amount           Signature
          Increase      of this Bearer             ---------
          --------        Debenture
                        following such
                         (reduction)/
                          increase
                          --------

------  ----------       -----------              ----------
------  ----------       -----------              ----------
------  ----------       -----------              ----------
------  ----------       -----------              ----------
------  ----------       -----------              ----------
------  ----------       -----------              ----------
------  ----------       -----------              ----------
------  ----------       -----------              ----------

                                       16
<PAGE>

                                                                       EXHIBIT B

                    [FORM OF FACE OF CERTIFICATED DEBENTURE]

NO.o                                                                [ISIN NO. o]

                              TXU EUROPE GROUP PLC

          9.75% Junior Subordinated Deferrable Interest Debentures, Series A due
March 2, 2020

          TXU EUROPE GROUP PLC, a public limited company duly incorporated and
existing under the laws of England and Wales (herein referred to as the
"Company", which term includes any successor Person under the Indenture), for
value received, hereby promises to pay to

or registered assigns, the principal sum of $________ Dollars on March 2, 2020
and, except as hereinafter provided, to pay interest on said principal sum
quarterly in arrears on March 31, June 30, September 30, and December 31 of each
year (each an Interest Payment Date) unless the Company defers the payment of
interest as described herein under the paragraph entitled Option to Defer
Interest Payment Period. Interest shall be payable at the rate of 9.75% per
annum until the principal hereof is paid or made available for payment. Interest
on the Securities of this series shall be computed on the basis of a 360-day
year consisting of twelve 30-day months and for any period shorter than a full
quarter, on the basis of the actual number of days elapsed in such period.
Interest on the Securities of this series will accrue from March 2, 2000, to the
first Interest Payment Date (which shall be June 30, 2000), and thereafter will
accrue from the last Interest Payment Date to which interest has been paid or
duly provided for. In the event that any Interest Payment Date is not a Business
Day, then payment of interest payable on such date will be made on the next
succeeding day which is a Business Day (and without any interest or other
payment in respect of such delay) with the same force and effect as if made on
the Interest Payment Date; except that, if such Business day is in the next
succeeding calendar year, the payment will be made on the immediately preceding
Business Day (without any reduction of interest or other payment in respect of
such early payment) with the same force and effect as if made on the Interest
Payment Date. The interest so payable, and punctually paid or duly provided for,
on any Interest Payment Date will, as provided in the Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the Business Day in The City of New York immediately
preceding such Interest Payment Date. . Any such interest not so punctually paid
or duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to Holders of Securities
of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series
may be listed, and upon such notice as may be required by such exchange, all as
more fully provided in the Indenture referred to on the reverse hereof

                                       17
<PAGE>

          Payment of the principal of (and premium, if any) on this Security
will be made upon presentation and surrender of this Security, at the office or
agency of the Company maintained for that purpose in The City of New York, the
State of New York and, for so long as the Securities of this series shall be
listed on the Luxembourg Stock Exchange, in Luxembourg, in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts. Payment of interest will be made by check
mailed to the last address of the registered owner shown on the records of the
Security Registrar, or at the option of the Company, by wire transfer pursuant
to instructions received from the registered owner.

          Reference is hereby made to the further provisions of this Security
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

          Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

                                        TXU EUROPE GROUP PLC

                                        By:
                                           -------------------------------------

                               [FORM OF GUARANTEE]

          TXU EUROPE LIMITED, a corporation incorporated under the laws of
England and Wales (the "Guarantor", which term includes any successor under the
Indenture (the "Indenture") referred to in the Security upon which this
Guarantee is endorsed), for value received, hereby unconditionally and
irrevocably guarantees to the Holder of the Security upon which this Guarantee
is endorsed, the due and punctual payment of the principal of, and premium, if
any, and interest and Additional Amounts, if any, on such Security when and as
the same shall become due and payable, whether at the Stated Maturity, by
declaration of acceleration, call for redemption, or otherwise, in accordance
with the terms of such Security and of the Indenture, regardless of any defense,
right of set-off or counterclaim that the Guarantor may have (except the defense
of payment). In case of the failure of TXU EUROPE GROUP PLC, a public limited
company incorporated under the laws of England and Wales (the "Company", which
term includes any successor under the Indenture), punctually to make any such
payment, the Guarantor hereby agrees to cause such payment to be made punctually
when and as the same shall become due and payable, whether at the Stated
Maturity or by declaration of acceleration, call for redemption or otherwise,
and as if such payment were made by the Company. The Guarantor's obligation to

                                       18
<PAGE>

make a guarantee payment may be satisfied by direct payment of the required
amounts by the Guarantor to the Holder of such Security or to a Paying Agent, or
by causing the Company to pay such amount to such Holder or a Paying Agent.

          This Guarantee is an unsecured and subordinated obligation of the
Guarantor and shall at all times rank at least equally with each other Guarantee
issued pursuant to the Indenture and, except as permitted by Section 806 of the
Indenture, will rank at least equally with all other unsecured subordinated
indebtedness of the Guarantor.

          The Guarantor hereby agrees that its obligations hereunder shall be
absolute, unconditional and irrevocable irrespective of, and shall be unaffected
by, any invalidity, irregularity or unenforceability of such Security or the
Indenture, any failure to enforce the provisions of such Security or the
Indenture, any extension of time for payment or performance by the Company as
provided by such Security or the Indenture, or any waiver, modification or
indulgence granted to the Company with respect thereto, by the Holder of such
Security or the Trustee or any other circumstance which may otherwise constitute
a legal or equitable discharge or defense of a surety or guarantor; provided,
however, that notwithstanding the foregoing, no such waiver, modification or
indulgence shall, without the consent of the Guarantor, increase the principal
amount of such Security, or increase the interest rate thereon, or change any
redemption provisions thereof (including any change to increase any premium
payable upon redemption thereof) or change the Stated Maturity thereof.

          The Guarantor hereby waives the benefits of diligence, presentment,
demand for payment, any requirement that the Trustee or the Holder of such
Security exhaust any right or take any action against the Company or any other
Person, the filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the
Company, protest or notice with respect to such Security or the indebtedness
evidenced thereby and all demands whatsoever, and covenants that this Guarantee
will not be discharged in respect of such Security except by complete
performance of the obligations contained in such Security and in this Indenture
and in this Guarantee. This Guarantee shall constitute a guarantee of payment
and not of collection. The Guarantor hereby agrees that, in the event of a
default in payment of principal, or premium, if any, or interest or Additional
Amounts, if any, on such Security, whether at its Stated Maturity, by
declaration of acceleration, call for redemption, or otherwise, legal
proceedings may be instituted by the Trustee on behalf of, or by, the Holder of
such Security, subject to the terms and conditions set forth in the Indenture,
directly against the Guarantor to enforce this Guarantee without first
proceeding against the Company. The Guarantor agrees that if, after the
occurrence and during the continuance of an Event of Default, the Trustee or any
of the Holders are prevented by applicable law from exercising their respective
rights to accelerate the maturity of the Securities, to collect interest on the
Securities, or to enforce or exercise any other right or remedy with respect to
the Securities, the Guarantor will pay to the Trustee for the account of the
Holders, upon demand therefor, the amount that would otherwise have been due and
payable had such rights been permitted to be exercised by the Trustee or any of
the Holders.

          The obligations of the Guarantor hereunder with respect to such
Security shall be continuing and irrevocable until the date upon which the
entire principal of, premium, if any, and interest and Additional Amounts, if
any, on such Security has been, or has been deemed pursuant to the provisions of

                                       19
<PAGE>

Article Seven of the Indenture to have been, paid in full or otherwise
discharged.

          The Guarantor shall be subrogated to all rights of the Holder of each
Security upon which its Guarantee is endorsed against the Company in respect of
any amounts paid by the Guarantor on account of such Security pursuant to the
provisions of its Guarantee or the Indenture; provided, however, that the
Guarantor shall not be entitled to enforce or to receive any payments arising
out of, or based upon, such right of subrogation until the principal of, and
premium, if any, and interest, if any, and Additional Amounts, if any, on all
Securities issued under the Indenture shall have been paid in full.

          This Guarantee shall remain in full force and effect and continue
notwithstanding any petition filed by or against the Company for liquidation or
reorganization, the Company becoming insolvent or making an assignment for the
benefit of creditors or a receiver or trustee being appointed for all or any
significant part of the Company's assets, and shall, to the fullest extent
permitted by law, continue to be effective or reinstated, as the case may be, if
at any time payment of the Security upon which this Guarantee is endorsed, is,
pursuant to applicable law, rescinded or reduced in amount, or must otherwise be
restored or returned by the Holder of such Security, whether as a "voidable
preference," "fraudulent transfer," or otherwise, all as though such payment or
performance had not been made. In the event that any payment, or any part
thereof, is rescinded, reduced, restored or returned on such Security, such
Security shall, to the fullest extent permitted by law, be reinstated and deemed
paid only by such amount paid and not so rescinded, reduced, restored or
returned.

          This Guarantee shall not be valid or obligatory for any purpose until
the certificate of authentication of the Security upon which this Guarantee is
endorsed shall have been manually executed by or on behalf of the Trustee under
the Indenture.

          All terms used in this Guarantee which are defined in the Indenture
shall have the meanings assigned to them in such Indenture.

          This Guarantee shall be deemed to be a contract made under the laws of
the State of New York, and for all purposes shall be governed by and construed
in accordance with the laws of the State of New York.

          IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be
executed as of the date first written above.

                                        TXU EUROPE LIMITED

                                        By:
                                           -------------------------------------

                     [FORM OF CERTIFICATE OF AUTHENTICATION]

                          CERTIFICATE OF AUTHENTICATION

Dated:

                                       20
<PAGE>

          This is one of the Securities of the series designated therein and the
Guarantee thereof referred to in the within-mentioned Indenture.

                                        THE BANK OF NEW YORK, as Trustee

                                        By:
                                           -------------------------------------
                                                  Authorized Signatory

                                       21
<PAGE>

                         [FORM OF REVERSE OF DEBENTURE]

          This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture (For Unsecured Subordinated Debt Securities), dated as
of March 2, 2000 (herein, together with any amendments thereto, called the
"Indenture", which term shall have the meaning assigned to it in such
instrument), among the Company, TXU EUROPE LIMITED, as Guarantor (herein called
the "Guarantor," which term includes any successor under the Indenture) and The
Bank of New York, as Trustee (herein called the "Trustee", which term includes
any successor trustee under the Indenture), and reference is hereby made to the
Indenture, including the Board Resolutions and Officer's Certificate filed with
the Trustee on March 2, 2000, creating the series designated on the face hereof,
for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Guarantor, the Trustee and the Holders
of the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on
the face hereof.

          The Securities of this series will be redeemable at the option of the
Company:

          (a)  in whole and from time to time in part at any time on or after
               March 2, 2005; and

          (b)  in whole but not in part if the Company certifies to the Trustee
               in an Officer's Certificate delivered to the Trustee prior to the
               giving of a notice as provided below that a Partnership Special
               Event has occurred under the Agreement of Limited Partnership.

in each case upon not less than 30 nor more than 60 days' notice given as
provided herein and at a Redemption Price equal to 100% of the principal amount
thereof plus accrued and unpaid interest thereon and accrued and unpaid
Additional Amounts with respect thereto, if any, to the Redemption Date.

          The Trustee shall accept, and shall be fully protected in relying
upon, such certificate as sufficient evidence of the condition precedent set out
in (b) above, in which event it shall be conclusive and binding on the Holders.

          Upon payment of the Redemption Price, on and after the Redemption Date
interest and any Additional Amounts will cease to accrue on the Securities of
this series or portions thereof called for redemption.

          In the event that this Security is to be redeemed in whole or in part,
it may be surrendered at the offices of the Trustee or the Paying Agent in
Luxembourg so long as the Security is listed on the Luxembourg Stock Exchange.

          Except as provided herein, Article Four of the Indenture shall apply
to redemptions of the Securities of this series.

                                       22
<PAGE>

          Any notice required by the Indenture or this Security to be given to
the Holder of this Security, including but not limited to any notice of
redemption of this Security, shall be sufficiently given, and deemed given, if
given as follows:

          (i)  in writing delivered by hand, mail or telefax to the registered
               owner of this Security at the last address shown on the records
               of the Security Registrar; and

          (ii)by publication in a leading daily newspaper having general
               circulation in Luxembourg (which is expected to be the
               Luxemburger Wort) so long as the Securities of this series are
               listed on the Luxembourg Stock Exchange and the rules of the
               Luxembourg Stock Exchange so require.

          The indebtedness evidenced by this Security is, to the extent provided
in the Indenture, subordinated and subject in right of payment to the prior
payment in full of all Senior Indebtedness, and this Security is issued subject
to the provisions of the Indenture with respect thereto. Each Holder of this
Security, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on his behalf to take such
action as may be necessary or appropriate to acknowledge or effectuate the
subordination so provided and (c) appoints the Trustee his attorney-in-fact for
any and all such purposes. Each Holder hereof, by his acceptance hereof, hereby
waives all notice of the acceptance of the subordination provisions contained
herein and in the Indenture by each holder of Senior Indebtedness, whether now
outstanding or hereafter incurred, and waives reliance by each such Holder upon
said provisions.

          The Indenture contains provisions for defeasance at any time of the
entire indebtedness of this Security upon compliance with certain conditions set
forth in the Indenture including the Officer's Certificate described above.

          If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.

          The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of all series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

          As provided in and subject to the provisions of the Indenture, the
Holder of this Security shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or

                                       23
<PAGE>

for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of a majority in aggregate principal
amount of the Securities of all series at the time Outstanding in respect of
which an Event of Default shall have occurred and be continuing shall have made
written request to the Trustee to institute proceedings in respect of such Event
of Default as Trustee and offered the Trustee reasonable indemnity, and the
Trustee shall not have received from the Holders of a majority in aggregate
principal amount of Securities of all series at the time Outstanding in respect
of which an Event of Default shall have occurred and be continuing a direction
inconsistent with such request, and shall have failed to institute any such
proceeding, for 60 days after receipt of such notice, request and offer of
indemnity. The foregoing shall not apply to any suit instituted by the Holder of
this Security for the enforcement of any payment of principal hereof or any
premium or interest hereon on or after the respective due dates expressed
herein.

          No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of and any premium and
interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

Option to Defer Interest Payment Period
---------------------------------------

          Pursuant to Section 312 of the Indenture, so long as the Company is
not in default in the payment of interest on the Securities of any series under
the Indenture, the Company shall have the right, at any time and from time to
time during the term of the Securities of this series, to defer the payment of
interest for a period not exceeding six consecutive quarterly periods (a
"Deferral Period") during which period interest (calculated for each period
from, and including, an Interest Payment Date to, but excluding the next
succeeding Interest Payment Date (an "Interest Period"), except that the first
Interest Period shall commence on March 2, 2000, in the manner described in the
first paragraph of this Debenture, as if the interest payment period had not
been so extended) will be compounded quarterly. At the end of the Deferral
Period, the Company shall pay all interest accrued and unpaid hereon (together
with interest thereon at the rate specified for the Securities of this series,
compounded quarterly, to the extent permitted by applicable law) and Additional
Interest, if any. Prior to the termination of any Deferral Period, the Company
may further defer the payment of interest for an additional Deferral Period,
provided that such Deferral Period together with all such previous and further
extensions thereof shall not exceed six consecutive quarterly periods at any one
time or extend beyond the Maturity of the Securities of this series. Upon the
termination of any Deferral Period and the payment of all amounts then due,
including interest on deferred interest payments, the Company may elect to begin
a new Deferral Period, subject to the above requirements. No interest shall be
due and payable during a Deferral Period, except at the end thereof. The Company
shall give the Trustee notice of its election to defer interest payments prior
to the earlier of (i) one Business Day prior to the record date for the
distribution which would occur but for such election or (ii) the date the
Company is required to give notice to any securities exchange on which the
Securities may be listed or any other applicable self-regulatory organization of
the record date.

          The Indenture contains terms, provisions and conditions relating to
the consolidation or merger of the Company or the Guarantor with or into, and
the conveyance or other transfer, or lease, of assets to another Person and to

                                       24
<PAGE>

the release and discharge of the Company or the Guarantor, as the case may be,
in certain circumstances from such obligations.

          The Securities of this series are issuable only in registered form
without coupons in denominations of $25 and in integral multiples of $25 in
excess thereof. As provided in the Indenture and subject to certain limitations
therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor and of
authorized denominations, as requested by the Holder surrendering the same.

          No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.

          The Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the absolute
owner hereof for all purposes, whether or not this Security may be overdue, and
neither the Company, the Trustee nor any such agent shall be affected by notice
to the contrary. As provided in the Indenture and subject to certain limitations
therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor of a
different authorized denomination, as requested by the Holder surrendering the
same.

          All terms used in this Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture and in the Officer's
Certificate establishing the terms of the Securities of this series.

                                       25<PAGE>

                                                                    EXHIBIT 4(A)

                                DEPOSIT AGREEMENT

                                     BETWEEN

                 THE BANK OF NEW YORK, as Book-Entry Depositary

                                       and

                          TXU EUROPE GROUP PLC, Issuer

                            Dated as of March 2, 2000
<PAGE>

                                TABLE OF CONTENTS
                                                                           Page
                                                                           ----
ARTICLE I....................................................................1
   Section 1.01.     Definitions.............................................1
   Section 1.02.     Rules of Construction...................................2
ARTICLE II...................................................................3
   Section 2.01.     Deposit of the Junior Subordinated Debentures...........3
   Section 2.02.     Redemption of the Junior Subordinated Debentures........3
   Section 2.03.     Cancellation............................................3
   Section 2.04.     Payments in Respect of the Book-Entry Interests
                     and the Junior Subordinated Debentures..................4
   Section 2.05.     Change in Principal Amount of Junior Subordinated
                     Debentures..............................................4
   Section 2.06.     Record Date.............................................4
   Section 2.07.     Reports and Notices.....................................5
   Section 2.08.     Additional Amounts......................................5
   Section 2.09.     Changes Affecting Junior Subordinated Debentures........5
ARTICLE III..................................................................6
   Section 3.01.     Certain Duties and Responsibilities.....................6
   Section 3.02.     Events of Default.......................................7
   Section 3.03.     Certain Rights of Book-Entry Depositary.................7
   Section 3.04.     Not Responsible for Recitals or Issuance of Junior
                     Subordinated Debentures.................................8
   Section 3.05.     Money Held in Trust.....................................8
   Section 3.06.     Compensation and Reimbursement..........................8
   Section 3.07.     Book-Entry Depositary Required; Eligibility.............9
   Section 3.08.     Resignation and Removal; Appointment of Successor.......9
   Section 3.09.     Acceptance of Appointment by Successor.................10
   Section 3.10.     Merger, Conversion, Consolidation or Succession
                     to Business............................................11
ARTICLE IV..................................................................11
   Section 4.01.     Notices to Book-Entry Depositary or Issuer.............11
   Section 4.02.     Notice to the Registered Holders; Waiver...............12
   Section 4.03.     Effect of Headings and Table of Contents...............12
   Section 4.04.     Successors and Assigns.................................12
   Section 4.05.     Separability Clause....................................12
   Section 4.06.     Benefits of Agreement..................................12
   Section 4.07.     GOVERNING LAW..........................................13
   Section 4.08.     Jurisdiction...........................................13
   Section 4.09.     Counterparts...........................................13
   Section 4.10.     Inspection of Agreement................................13
   Section 4.11.     Satisfaction and Discharge.............................13
   Section 4.12.     Amendments.............................................14
   Section 4.13.     Book-Entry Depositary To Sign Amendments...............14

                                       i
<PAGE>

                                DEPOSIT AGREEMENT

          This Deposit Agreement (as the same may be amended from time to time
in accordance with the provisions hereof, the "Deposit Agreement"), dated as of
March 2, 2000, is among The Bank of New York, a New York banking corporation, as
book-entry depositary with respect to the Junior Subordinated Debentures
hereunder (the "Book-Entry Depositary"), TXU Europe Group plc, a public limited
company incorporated under the laws of England and Wales (the "Issuer"), and the
holders and beneficial owners from time to time of interests in the Book-Entry
Interests.

                                    ARTICLE I

                    DEFINITIONS AND OTHER GENERAL PROVISIONS

Section 1.01.  Definitions.

          Terms not defined herein have the meanings ascribed to them in the
Indenture. The following terms, as used herein, have the following meanings:

          "Book-Entry Depositary" means the party named as such in this
Agreement or its nominee or the custodian of either until a successor shall have
become such pursuant to Section 3.08 hereof, and thereafter "Book-Entry
Depositary" shall mean such successor or its nominee or the custodian of either.

          "Book-Entry Interests" means the certificateless depositary interests
that shall at all times represent the right to receive 100% of the principal,
premium (if any) and interest on the underlying Junior Subordinated Debentures
from time to time received by the Book-Entry Depositary.

          "Book-Entry Register" means the register in which the Book-Entry
Depositary records the registration of the Book-Entry Interests and the
registration of transfer thereof pursuant to Section 2.02 hereof.

          "Corporate Trust Office" means the office of the Book-Entry Depositary
in The City of New York, at which at any particular time its corporate trust
business shall be principally administered, which at the date hereof is located
at 101 Barclay Street, New York, NY 10286, Attn: Corporate Trust Division,
Corporate Finance Group.

          "Exchange Act" means the United States Securities Exchange Act of
1934, as amended.

          "Guarantor" means TXU Europe Limited, a private limited company
incorporated under the laws of England and Wales.

          "Indenture" means the Indenture (for Unsecured Subordinated Debt
Securities) dated as of March 2, 2000, among the Issuer, the Guarantor, and The
Bank of New York, as Trustee, relating to the Junior Subordinated Debentures as
originally executed or as it may from time to time be supplemented or amended,
including by the Series A Officer's Certificate and, for all purposes to the
extent applicable, the provisions of the Trust Indenture Act that are deemed to
be a part of and govern such instrument.

          "Issuer" means the party named as such in this Agreement until a
successor replaces it pursuant to the applicable provisions of the Indenture
and, thereafter, means such successor.
<PAGE>

          "Issuer Order" means a written request or order signed in the name of
the Issuer by any officer of the Issuer or other person duly authorized by the
Board of Directors, and delivered to the Book-Entry Depositary.

          "Junior Subordinated Debentures" means the 9.75% Junior Subordinated
Deferrable Interest Debentures, Series A due March 2, 2020 issued in bearer form
by the Issuer to the Book-Entry Depositary pursuant to the Indenture.

          "Jurisdiction of Incorporation" means each jurisdiction in which the
Issuer or the Guarantor, as the case requires, is incorporated or organized.

          "Series A Officer's Certificate" means the Officer's Certificate (as
defined in the Indenture) signed by an Authorized Officer of the Issuer and by
an Authorized Officer of the Guarantor, dated as of March 2, 2000 and
establishing certain terms of the Junior Subordinated Debentures in accordance
with the provisions of the Indenture.

          "Officer's Certificate" means a certificate signed in the name of the
Issuer by an Authorized Officer of the Issuer and delivered to the Trustee or
the Book-Entry Depositary, as the case requires.

          "Opinion of Counsel" means a written opinion from legal counsel, who
may be an employee of or regular counsel for the Issuer or may be other counsel
reasonably acceptable to the Book-Entry Depositary.

          "Registered Holder" means, with respect to any Book-Entry Interest,
the Person in whose name such Book-Entry Interest is registered on the
Book-Entry Register maintained by the Book-Entry Depositary.

          "Responsible Officer", when used with respect to the Book-Entry
Depositary, means any authorized officer of the Book-Entry Depositary including
the president, any vice president, any assistant vice president, the secretary,
any assistant secretary, the treasurer, any assistant treasurer, or any other
officer of the Book-Entry Depositary who customarily performs functions similar
to those performed by the Persons who at the time shall be such officers,
respectively, or to whom any depositary matter is referred because of such
officer's knowledge of and familiarity with the particular subject.

          "Securities Act" means the United States Securities Act of 1933, as
amended.

          "Trustee" means The Bank of New York and its successors and assigns,
as trustee under the Indenture.

Section 1.02.  Rules of Construction.

Unless the context otherwise requires:

          (a)       a term has the meaning assigned to it;

          (b)       "or" is not exclusive;

          (c)       "including" means including without limitation; and

          (d)       words in the singular include the plural and words in the
                    plural include the singular.

                                       2
<PAGE>

                                   ARTICLE II

                              BOOK-ENTRY INTERESTS

Section 2.01.  Deposit of the Junior Subordinated Debentures.

          The Book-Entry Depositary hereby accepts custody of the Junior
Subordinated Debentures and shall act as Book-Entry Depositary in accordance
with the terms of this Agreement. The Book-Entry Depositary shall hold the
Junior Subordinated Debentures at its Corporate Trust Office in The City of New
York, at the office of the paying agent in Luxembourg or at such place as it
shall determine with the consent of the Issuer and shall issue the Book-Entry
Interests to the Registered Holders.

Section 2.02.  Registration of Transfer of the Book-Entry Interests

          The Book-Entry Depositary agrees to maintain at the Book-Entry
Depositary's Corporate Trust Office the Book-Entry Register in which the
Book-Entry Depositary shall (x) upon initial receipt of the Junior Subordinated
Debentures, record the Persons designated by the Issuer as the initial
Registered Holders and (y) thereafter record the registration of transfer of
Book-Entry Interests. The Book-Entry Interests cannot be transferred unless such
transfer is recorded on the Book-Entry Register. The Book-Entry Depositary and
any agent thereof may treat the Person in whose name any Book-Entry Interest is
registered as the absolute owner of such Book-Entry Interest for the purpose of
receiving any payments on such Book-Entry Interest and for all purposes
whatsoever, whether or not overdue, and the Book-Entry Depositary shall not be
affected by notice to the contrary.

Section 2.03.  Redemption of the Junior Subordinated Debentures.

          In the event that the Issuer exercises any right to redeem the Junior
Subordinated Debentures in whole or in part, the Book-Entry Depositary, as
holder of Junior Subordinated Debentures, shall, upon notice from the Issuer or
the Trustee, as the case may be, surrender the Junior Subordinated Debentures at
a place of payment or such other place as the Issuer may designate, and deliver
such Junior Subordinated Debentures to the Trustee for cancellation or for
reduction of principal amount by an endorsement on the reverse thereof or in
exchange for a substitute Junior Subordinated Debenture, as the case may be.

Section 2.04.  Cancellation.

          If the Junior Subordinated Debentures are surrendered for payment, for
redemption in whole to any Person other than the Trustee, such Junior
Subordinated Debentures shall be surrendered to the Security Registrar for
cancellation.

                                       3
<PAGE>

Section 2.05.  Payments in Respect of the Book-Entry Interests and the
               Junior Subordinated Debentures.

          (a)  Whenever the Book-Entry Depositary, as holder of the Junior
Subordinated Debentures, shall receive from the Trustee (or other paying agent
under the Indenture) any payment on the Junior Subordinated Debentures
(including pursuant to the Guarantee as defined in the Indenture), such payments
shall be distributed promptly to the Registered Holders on the payment date for
the Junior Subordinated Debentures. The Book-Entry Depositary shall maintain a
place of payment at its Corporate Trust Office in The City of New York. The
payment date for the Book-Entry Interests for payment of any principal or
interest shall be the same date as the payment date for the related Junior
Subordinated Debentures.

          (b)  The Book-Entry Depositary will forward to the Issuer or its
agents such information from its records as the Issuer may reasonably request in
writing to enable the Issuer or its agents to file necessary reports with
governmental agencies, and the Book-Entry Depositary, the Issuer or their agents
may (but shall not be required to) file any such reports necessary to obtain
benefits under any applicable tax treaties for the Registered Holders as the
beneficial owners if Interests.

          (c)  Notwithstanding any other provisions of this Agreement, the
Book-Entry Depositary shall be required to pay to the Registered Holders only
amounts (including Additional Amounts) received by the Book-Entry Depositary
from the Issuer under the Junior Subordinated Debentures or the Guarantor
pursuant to the Guarantee.

          (d)  Neither the Issuer, the Guarantor nor any agent of the Issuer or
the Guarantor (including but not limited to any paying agent) will have any
responsibility or liability for any aspect relating to payments (including
payments of Additional Amounts, if any) made or to be made by the Book-Entry
Depositary to the Registered Holders in respect of the Junior Subordinated
Debentures or the Book-Entry Interests.

Section 2.06.  Change in Principal Amount of Junior Subordinated Debentures.

          Whenever the principal amount at maturity of the Junior Subordinated
Debentures held by the Book-Entry Depositary is changed by the Trustee as a
result of partial redemption or otherwise, the Book-Entry Depositary shall
record on the Book-Entry Register a corresponding change in the principal amount
of the related Book-Entry Interests and notify the Registered Holders of such
corresponding change.

Section 2.07.  Record Date; Action in Respect of the Book-Entry Interests or
               the Junior Subordinated Debentures.

          Whenever the Book-Entry Depositary shall receive notice of any action
to be taken in respect of the Book-Entry Interests or Junior Subordinated
Debentures, or whenever the Book-Entry Depositary otherwise deems it appropriate
in respect of any other matter, the Book-Entry Depositary shall fix a record
date to determine who shall be entitled to take any such action or to act in
respect of any such matter.

          The Registered Holders may direct the time, method and place of
conducting any proceeding for any remedy available to the Book-Entry Depositary
or of exercising any rights or duties conferred on the Book-Entry Depositary.
However, the Book-Entry Depositary will not exercise any discretion in the
granting of consents or the taking of any other action in respect of the
Book-Entry Interests or the Junior Subordinated Debentures but it may refuse to

                                       4
<PAGE>

follow any direction that conflicts with law or this Agreement or the Indenture
or the Junior Subordinated Debentures, subject to Section 3.01 hereof, that the
Book-Entry Depositary determines would involve it in personal liability.

Section 2.08.  Reports and Notices.

          The Book-Entry Depositary shall promptly (and in no event later than
10 days from receipt) send to the Registered Holders a copy of any notices,
reports and other communications received by it relating to the Issuer, the
Junior Subordinated Debentures or the Book-Entry Interests.

Section 2.09.  Additional Amounts.

          The Book-Entry Depositary shall pay to the Registered Holders any
Additional Amounts, as defined in the Series A Officer's Certificate, that have
been paid by the Issuer or the Guarantor to the Book-Entry Depositary.

          At least 10 days prior to the first interest payment date, and at
least 10 days prior to each succeeding interest payment date if there has been
any change with respect to the matters set forth in the below-mentioned
Officer's Certificate, the Issuer will furnish the Book-Entry Depositary with an
Officer's Certificate instructing the Book-Entry Depositary whether such payment
of principal, premium, if any, or interest on such Book-Entry Interests shall be
made to Registered Holders without deduction or withholding for or on account of
any taxes, duties, assessments or other governmental charges referred to in
paragraph 16 of the Series A Officer's Certificate. If any such deduction or
withholding shall be required, prior to such interest payment date the Issuer
will furnish the Book-Entry Depositary with an Officer's Certificate that
specifies the amount required to be deducted or withheld on such payment. The
Issuer shall indemnify the Book-Entry Depositary, its officers, directors and
employees for, and hold it and them harmless against, any loss, liability or
expense reasonably incurred without negligence, willful misconduct or bad faith
on its part arising out of or in connection with actions taken or omitted by it
in reliance on any Officer's Certificate furnished to it pursuant to this
Section 2.08.

Section 2.10.  Changes Affecting Junior Subordinated Debentures.

          Upon any reclassification of the Junior Subordinated Debentures, or
upon any recapitalization, reorganization, merger or consolidation or sale of
assets affecting the Issuer or to which it is a party, or upon an exchange of
the Junior Subordinated Debentures pursuant to the Indenture, any securities
that shall be received by the Book-Entry Depositary in exchange for, in
conversion of or in respect of the Junior Subordinated Debentures shall be
treated as new Junior Subordinated Debentures under this Agreement and the
Book-Entry Interests shall thenceforth represent beneficial interests in such
new Junior Subordinated Debentures so received.

                                       5
<PAGE>

                                   ARTICLE III

                            THE BOOK-ENTRY DEPOSITARY

Section 3.01.  Certain Duties and Responsibilities.

          (a)  The Book-Entry Depositary undertakes to perform such duties and
only such duties as are specifically set forth in this Agreement and no implied
covenants or obligations shall be read into this Agreement against the
Book-Entry Depositary.

          (b)  In the absence of bad faith on its part, the Book-Entry
Depositary may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions
furnished to the Book-Entry Depositary and conforming to the requirements of
this Agreement, but in the case of any such certificates or opinions which by
any provision hereof are specifically required to be furnished to the Book-Entry
Depositary, the Book-Entry Depositary shall examine the same to determine
whether or not they conform to the requirements of this Agreement.

          (c)  No provision of this Agreement shall be construed to relieve the
Book-Entry Depositary from liability for its own negligent action, its own
negligent failure to act or its own willful misconduct, except that:

               (i)  the Book-Entry Depositary shall not be liable for any error
          of judgment made in good faith by a Responsible Officer of the
          Book-Entry Depositary, unless the Book-Entry Depositary was negligent
          in ascertaining the pertinent facts; and

               (ii) the Book-Entry Depositary shall not be liable with respect
          to any action taken or omitted to be taken by it in good faith in
          accordance with the direction of the Registered Holders relating to
          the time, method and place of conducting any proceeding for any remedy
          available to the Book-Entry Depositary, or exercising any power
          conferred upon the Book-Entry Depositary, under this Agreement or the
          Indenture.

          (d)  No provision of this Agreement shall require the Book-Entry
Depositary to spend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk
or liability satisfactory to the Book-Entry Depositary has not been reasonably
assured to it.

          (e)  Whether or not therein expressly so provided, every provision of
this Agreement relating to the conduct or affecting the liability of or
affording protection to the Book-Entry Depositary shall be subject to the
provisions of this Section 3.01.

                                       6
<PAGE>

Section 3.02.  Events of Default.

          Upon the occurrence of any Event of Default or in connection with any
other right of the holder of the Junior Subordinated Debentures under the
Indenture, and if requested by notice in writing by the Registered Holders, the
Book-Entry Depositary shall take such ministerial action as shall be requested
in such notice in respect of the Junior Subordinated Debentures.

Section 3.03.  Certain Rights of Book-Entry Depositary.

          Subject to the provisions of Section 3.01 hereof:

          (a)  the Book-Entry Depositary may rely and shall be protected in
acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
party or parties;

          (b)  any request or direction of the Issuer mentioned herein shall be
sufficiently evidenced by an Officer's Certificate or Issuer Order or as
otherwise expressly provided herein and any resolution of the Board of Directors
may be sufficiently evidenced by a Board Resolution;

          (c)  the Book-Entry Depositary may consult with counsel, and may rely
upon the written advice of such counsel or any Opinion of Counsel and shall be
protected in respect of any action taken, suffered or omitted by it hereunder in
good faith and in reliance thereon;

          (d)  the Book-Entry Depositary shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
document, but the Book-Entry Depositary, in its discretion, may make such
further inquiry or investigation into such facts or matters as it may see fit,
and, if the Book-Entry Depositary shall determine to make such further inquiry
or investigation, it shall be entitled upon reasonable prior request and during
normal business hours to examine the books, records and premises of the Issuer,
personally or by agent or attorney;

          (e)  the Book-Entry Depositary may execute any of the rights hereunder
or perform any duties hereunder either directly or by or through agents or
attorneys, but the Book-Entry Depositary shall be responsible for any misconduct
or negligence on the part of any such agent or attorney appointed by it
hereunder;

          (f)  the Book-Entry Depositary shall be under no obligation to expend
or risk its own funds or to exercise, at the request or direction of the
Registered Holders, any of the rights or powers vested in it by this Agreement
or the Indenture unless the Registered Holders shall have offered to the
Book-Entry Depositary security or indemnity satisfactory to the Book-Entry
Depositary against the costs, expenses and liabilities that might be incurred by
it in compliance with such request or direction; and

          (g)  whenever in the administration of its duties under this Agreement
the Book-Entry Depositary shall deem it desirable that a matter be proved or
established prior to taking or suffering or omitting any action hereunder, the
Book-Entry Depositary (unless other evidence be herein specifically prescribed)
may, in the absence of negligence or bad faith on its part, rely upon an
Officer's Certificate.

                                       7
<PAGE>

Section 3.04.  Not Responsible for Recitals or Issuance of Junior Subordinated
               Debentures.

          The recitals contained in the Indenture and in the Junior Subordinated
Debentures, except the Trustee's certificates of authentication, shall be taken
as the statements of the Issuer, and the Guarantor, as the case may be, and the
Book-Entry Depositary assumes no responsibility for their correctness. The
Book-Entry Depositary makes no representations as to the validity or sufficiency
of this Agreement, the Indenture or of the Junior Subordinated Debentures. The
Book-Entry Depositary shall not be accountable for the use or application by the
Issuer of the proceeds with respect to the Junior Subordinated Debentures.

Section 3.05.  Money Held in Trust.

          Money held by the Book-Entry Depositary in trust hereunder shall be
segregated from other funds held by the Book-Entry Depositary to the extent
required by law or in accordance with good practice or as required in writing by
the Issuer. The Book-Entry Depositary shall be under no obligation to invest or
pay interest on any money received by it hereunder, except as otherwise agreed
in writing with the Issuer. Any interest accrued on funds deposited with the
Book-Entry Depositary under this Agreement shall be paid to the Issuer from time
to time and the Registered Holders shall have no claim to any such interest.

Section 3.06.  Compensation and Reimbursement.

          The Issuer agrees:

          (a)  to pay to the Book-Entry Depositary from time to time such
compensation as is agreed upon in writing for services rendered by it hereunder;

          (b)  except as otherwise expressly provided herein, to reimburse the
Book-Entry Depositary upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Book-Entry Depositary in
accordance with any provision of this Agreement (including the reasonable
compensation and the reasonable expenses and disbursements of its agents and
counsel, which compensation, expenses and disbursements shall be set forth in
sufficient written detail to the satisfaction of the Issuer), except any such
expense, disbursement or advance as may be attributable to its or their
negligence, willful misconduct or bad faith; and

          (c)  to indemnify the Book-Entry Depositary for, and to hold it
harmless against, any loss, liability or expense incurred without negligence,
bad faith or willful misconduct on its part arising out of or in connection with
the acceptance or administration of this Agreement and its duties hereunder,
including the costs and expenses of defending itself against any claim of
liability in connection with the exercise or performance of any of its powers or
duties hereunder. The Indemnity provided by this Section 3.06(c) shall survive
the satisfaction and discharge of this Agreement pursuant to Section 4.11 hereof
and the termination of this Agreement for any reason.

          In case any claim shall be made or action brought against the
Book-Entry Depositary for any reason for which indemnity may be sought against
the Issuer in accordance with paragraph (c) above, the Book-Entry Depositary
shall promptly notify the Issuer in writing setting forth the particulars of
such claim or action and the Issuer may assume the defense thereof. In the event
that the Issuer elects to assume such defense and select such counsel, the
Book-Entry Depositary shall have the rights to employ its own counsel, but, in
any such case, the fees and expenses of such counsel shall be at the expense of
the Book-Entry Depositary, unless (i) the Issuer agreed in writing to pay such
fees and expenses or (ii) the named parties to any such action (including any
impleaded parties) include both the Book-Entry Depositary and the Issuer and the

                                       8
<PAGE>

Book-Entry Depositary shall have been advised by its counsel that a conflict of
interest between the Book-Entry Depositary and the Issuer may arise (and
Issuer's counsel shall have concurred with such advise) and for this reason it
is not desirable for the Issuer's counsel to represent both the Book-Entry
Depositary and the Issuer (it being understood, however, that the Issuer shall
not, in connection with any one such action or separate but substantially
similar or related actions in the same jurisdiction arising out of the same
general allegations or circumstances, be liable for reasonable fees and expenses
of more than one separate firm of attorneys for the Book-Entry Depositary (plus
any local counsel retained by the Book-Entry Depositary in their reasonable
judgement), which firm shall be designated in writing by the Book-Entry
Depositary). The Book-Entry Depositary agrees to give all assistance reasonably
required in connection with the conduct of any such claim or action.

          When the Book-Entry Depositary incurs expenses or renders services in
connection with an Event of Default pursuant to Section 3.02 hereof or
otherwise, the expenses (including the reasonable charges and expenses of
counsel) and the compensation for the services are intended to constitute
expenses of administration under any applicable bankruptcy, insolvency or other
similar law.

Section 3.07.  Book-Entry Depositary Required; Eligibility.

          At all times when there is a Book-Entry Depositary hereunder, such
Book-Entry Depositary shall be a corporation organized and doing business under
the laws of the United States of America, any state thereof or the District of
Columbia, having, together with its parents, a combined capital and surplus of
at least $50,000,000, subject to supervision or examination by Federal, state or
District of Columbia authority and willing to act on reasonable terms. Such
corporation shall have its principal place of business in the Borough of
Manhattan, The City of New York, if there be such a corporation in such location
willing to act upon reasonable and customary terms and conditions. If such
corporation, or its parent, publishes reports of condition at least annually,
pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section 3.07, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published.

          The Book-Entry Depositary hereunder shall at all times be the Trustee
under the Indenture, subject to receipt of an Opinion of Counsel that the same
Person is precluded by law from acting in such capacities. If at any time the
Book-Entry Depositary shall cease to be eligible in accordance with the
provisions of this Section 3.07, it shall resign immediately in the manner and
with the effect hereinafter specified in this Article.

Section 3.08.  Resignation and Removal; Appointment of Successor.

          (a)  No resignation or removal of the Book-Entry Depositary and no
appointment of a successor Book-Entry Depositary pursuant to this Article shall
become effective until (i) the acceptance of appointment by the successor
Book-Entry Depositary in accordance with the applicable requirements of Section
3.09 hereof or (ii) the Junior Subordinated Debentures are sent to the
Registered Holders.

          (b)  The Book-Entry Depositary may at any time resign as Book-Entry
Depositary with respect to the Junior Subordinated Debentures by giving written
notice thereof to the Issuer and the Registered Holders, in accordance with
Section 4.01 and Section 4.02 hereof, 60 days prior to the effective date of
such resignation. The Book-Entry Depositary may be removed at any time upon 90
days' notice by the filing with it of an instrument in writing signed on behalf
of the Issuer and specifying such removal and the date when it is intended to
become effective. If the instrument of acceptance by a successor Book-Entry
Depositary required by Section 3.09 hereof shall not have been delivered to the

                                       9
<PAGE>

Book-Entry Depositary within 30 days after the giving of such notice of
resignation or removal, the resigning Book-Entry Depositary may petition any
court of competent jurisdiction for the appointment of a successor Book-Entry
Depositary.

          (c)  If at any time:

               (i)  the Book-Entry Depositary shall cease to be eligible under
          Section 3.07 hereof, or shall cease to be eligible as Trustee under
          the Indenture, and shall fail to resign after written request therefor
          by the Issuer or by the Registered Holders, or

               (ii) the Book-Entry Depositary shall become incapable of acting
          with respect to the Book-Entry Interests or shall be adjudged a
          bankrupt or insolvent, or a receiver or liquidator of the Book-Entry
          Depositary or of its property shall be appointed or any public officer
          shall take charge or control of the Book-Entry Depositary or of its
          property or affairs for the purpose of rehabilitation, conservation or
          liquidation,

          then, in any such case, (i) the Issuer, by Board Resolution, may
remove the Book-Entry Depositary and appoint a successor Book-Entry Depositary,
and (ii) if the Issuer shall fail to remove such Book-Entry Depositary and
appoint a successor Book-Entry Depositary within 30 days of any such event, then
the Registered Holders may, on behalf of itself and all others similarly
situated, petition any court of competent jurisdiction for the removal of the
Book-Entry Depositary or Book-Entry Depositaries and the appointment of a
successor Book-Entry Depositary.

          (d)  If the Book-Entry Depositary shall resign, be removed or become
incapable of acting, or if a vacancy shall occur in the office of Book-Entry
Depositary for any cause, the Issuer, by Board Resolution, shall promptly
appoint a successor Book-Entry Depositary (other than the Issuer) and shall
comply with the applicable requirements of Section 3.09 hereof. If no successor
Book-Entry Depositary with respect to the Junior Subordinated Debentures shall
have been so appointed by the Issuer and accepted appointment in the manner
required by Section 3.09 within 120 days, then the Book-Entry Depository shall
surrender the Junior Subordinated Debentures in bearer form to the Trustee in
exchange for an equal aggregate principal amount of Junior Subordinated
Debentures in certificated form, in one or more certificates registered in the
names of the Registered Holders in the principal amounts owned by such
Registered Holders, and shall send such certificated Junior Subordinated
Debentures to the Registered Holders by mail or by hand.

          (e)  The Issuer shall give, or shall cause such successor Book-Entry
Depositary at the expense of the Issuer to give, notice of each resignation and
each removal of a Book-Entry Depositary and each appointment of a successor
Book-Entry Depositary to the Registered Holders in accordance with Section 4.02
hereof.

          Each notice shall include the name of the successor Book-Entry
Depositary and the address of its Corporate Trust Office.

Section 3.09.  Acceptance of Appointment by Successor.

          (a)  In case of the appointment hereunder of a successor Book-Entry
Depositary, every such successor Book-Entry Depositary so appointed shall
execute, acknowledge and deliver to the Issuer and to the retiring Book-Entry
Depositary an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Book-Entry Depositary shall become
effective and such successor Book-Entry Depositary, without any further act,
deed or conveyance, shall become vested with all the rights, powers, agencies

                                       10
<PAGE>

and duties of the retiring Book-Entry Depositary, with like effect as if
originally named as Book-Entry Depositary hereunder; but, on the request of the
Issuer or the successor Book-Entry Depositary, such retiring Book-Entry
Depositary shall (i) execute and deliver an instrument transferring to such
successor Book-Entry Depositary all the rights and powers of the retiring
Book-Entry Depositary and (ii) duly assign, transfer and deliver to such
successor Book-Entry Depositary all property and money held by such retiring
Book-Entry Depositary hereunder. Any retiring Book-Entry Depositary shall,
nonetheless, retain a prior claim upon all property or funds held or collected
by such Book-Entry Depositary to secure any amounts then due it pursuant to
Section 3.06 hereof except to the extent that such prior claim and security
would breach or constitute a default under the Indenture or Junior Subordinated
Debentures.

          (b)  Upon request of any such successor Book-Entry Depositary, the
Issuer shall execute any and all instruments required to more fully and
certainly vest in and confirm to such successor Book-Entry Depositary all such
rights, powers and agencies referred to in paragraph (a) of this Section 3.09.

          (c)  No successor Book-Entry Depositary shall accept its appointment
unless at the time of such acceptance such successor Book-Entry Depositary shall
be eligible under this Article.

          (d)  Upon acceptance of appointment by any successor Book-Entry
Depositary as provided in this Section 3.09, the Issuer shall give notice
thereof to the Registered Holders in accordance with Section 4.02 hereof. If the
acceptance of appointment is substantially contemporaneous with the resignation
of the Book-Entry Depositary, then the notice called for by the preceding
sentence may be combined with the notice called for by Section 3.08(b) hereof.
If the Issuer fails to give such notice within 10 days after acceptance of
appointment by the successor Book-Entry Depositary, the successor Book-Entry
Depositary shall cause such notice to be given at the expense of the Issuer.

Section 3.10.  Merger, Conversion, Consolidation or Succession to Business.

          Any Person into which the Book-Entry Depositary may be merged or
converted or with which it may be consolidated, or any Person resulting from any
merger, conversion or consolidation to which the Book-Entry Depositary shall be
a party, or any corporation succeeding to all or substantially all the corporate
trust business of the Book-Entry Depositary, shall be the successor of the
Book-Entry Depositary hereunder, without the execution or filing of any paper or
any further act on the part of any of the parties hereto.

                                   ARTICLE IV

                            MISCELLANEOUS PROVISIONS

Section 4.01.  Notices to Book-Entry Depositary or Issuer.

          Any request, demand, authorization, direction, notice, consent, or
waiver or other document provided or permitted by this Agreement to be made
upon, given or furnished to, or filed with,

          (a)  the Book-Entry Depositary by the Registered Holders, the Trustee,
the Issuer or the Guarantor shall be sufficient for every purpose hereunder
(unless otherwise herein expressly provided) if made, given, furnished or filed
in writing and personally delivered or mailed, first-class postage prepaid, to
the Book-Entry Depositary at its Corporate Trust Office, Attention: Corporate
Trust Division, Corporate Finance Group, or at any other address previously

                                       11
<PAGE>

furnished in writing by the Book-Entry Depositary to the Registered Holders, the
Trustee, the Guarantor and the Issuer, or

          (b)  the Issuer, by the Book-Entry Depositary or by the Registered
Holders shall be sufficient for every purpose hereunder (unless otherwise herein
expressly provided) if made, given, furnished or filed in writing and personally
delivered or mailed, first-class postage prepaid to TXU Europe Group plc, c/o
The Adelphi, 1-11 John Adam Street, London, England WC2N 6HT, Attention:
Treasurer or at any other address previously furnished in writing to the
Book-Entry Depositary by the Issuer.

Section 4.02.  Notice to the Registered Holders; Waiver.

          Where this Agreement provides for notice to the Registered Holders of
any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided or as provided in Letter of Representations) if in writing
and mailed, first-class postage prepaid, to the Registered Holders at the
address notified to the Book-Entry Depositary, in each case not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. Where this Agreement provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by the Registered Holders shall be filed with the
Book-Entry Depositary, but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such waiver.

          In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice by mail,
then such notification as shall be made with the approval of the Book-Entry
Depositary shall constitute a sufficient notification for every purpose
hereunder.

Section 4.03.  Effect of Headings and Table of Contents.

          The Article and Section headings herein are for convenience only and
shall not affect the construction hereof.

Section 4.04.  Successors and Assigns.

          All covenants and agreements in this Agreement and the Junior
Subordinated Debentures by the Issuer shall bind its successors and assigns,
whether so expressed or not.

Section 4.05.  Separability Clause.

          In case any provision in this Agreement or in the Junior Subordinated
Debentures shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions hereof and thereof shall not in
any way be affected or impaired thereby.

Section 4.06.  Benefits of Agreement.

          Nothing in this Agreement, the Junior Subordinated Debentures or the
Indenture, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, any benefits or any legal or equitable
right, remedy or claim under this Agreement, provided that the Registered
Holders shall be intended third-party beneficiaries of this Agreement. The
Registered Holders shall be party to this Agreement and shall be bound by all of
the terms and conditions hereof and of the Indenture and the Junior Subordinated
Debentures, by their acceptance of delivery of the Interests or beneficial
interests therein.

                                       12
<PAGE>

Section 4.07.  GOVERNING LAW.

          THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

Section 4.08.  Jurisdiction.

          (a)  The Issuer agrees that any legal suit, action or proceeding
against the Issuer brought by the Book-Entry Depositary arising out of or based
upon this Agreement may be instituted in any state or Federal court in the
Borough of Manhattan, The City of New York, and waives any objection which it
may now or hereafter have to the laying of venue of any such proceeding and,
until the satisfaction and discharge of this Agreement pursuant to Section 4.11
hereof, irrevocably submits to the nonexclusive jurisdiction of such courts in
any suit, action or proceeding.

          (b)  The Issuer has appointed Thelen Reid & Priest LLP at 40 West 57th
Street, New York, New York 10019, as its authorized agent (the "Authorized
Agent") upon whom process may be served in any legal suit, action or proceeding
arising out of or based upon this Agreement which may be instituted in the
Supreme Court of New York, New York County or the United States District Court
for the Southern District of New York by the Registered Holders or the
Book-Entry Depositary, and expressly accepts the nonexclusive jurisdiction of
any such court in respect of any such action. Such appointment shall be
irrevocable. Service of process upon the Authorized Agent shall be deemed, in
every respect, effective service of process upon the Issuer. Notwithstanding the
foregoing, any action based on this Agreement may be instituted by the
Book-Entry Depositary in any competent court in England or Wales.

          (c)  To the extent that the Issuer may in any jurisdiction claim for
itself or its assets immunity (to the extent such immunity may now or hereafter
exist, whether on the grounds of sovereign immunity or otherwise) from suit,
execution, attachment (whether in aid of execution, before judgment or
otherwise) or other legal process (whether through service or notice or
otherwise), and to the extent that in any such jurisdiction there may be
attributed to itself or its assets such immunity (whether or not claimed), the
Issuer irrevocably agrees with respect to any matter arising under this Deposit
Agreement for the benefit of the Registered Holders from time to time of the
Book-Entry Interests, not to claim, and irrevocably waives, such immunity to the
full extent permitted by the laws of such jurisdiction.

Section 4.09.  Counterparts.

          This Agreement may be executed in any number of counterparts by the
parties hereto on separate counterparts, each of which, when so executed and
delivered, shall be deemed an original, but all such counterparts shall together
constitute one and the same instrument.

Section 4.10.  Inspection of Agreement.

          A copy of this Agreement shall be available at all reasonable times
during normal business hours at the Corporate Trust Office of the Book-Entry
Depositary for inspection by the Registered Holders.

Section 4.11.  Satisfaction and Discharge.

                                       13
<PAGE>

          This Agreement upon Issuer Order shall cease to be of further effect,
and the Book-Entry Depositary, at the expense of the Issuer shall execute proper
instruments acknowledging satisfaction and discharge of this Agreement, when (i)
the Indenture has been satisfied and discharged pursuant to the provisions
thereof and all of the Junior Subordinated Debentures have been canceled in
accordance with the provisions of Section 2.07 and the Indenture, (ii) the
Issuer has paid or caused to be paid all sums payable hereunder by the Issuer
and (iii) the Issuer has delivered to the Book-Entry Depositary an Officer's
Certificate and an Opinion of Counsel, stating that all conditions precedent
herein provided relating to the satisfaction and discharge of this Agreement
have been complied with.

Section 4.12.  Amendments.

          The Issuer and the Book-Entry Depositary may amend this Agreement
without the consent of the Registered Holders:

          (a)  to cure any formal defect, omission, inconsistency or ambiguity
herein;

          (b)  to add to the covenants and agreements of the Issuer or the
Book-Entry Depositary;

          (c)  to effect the assignment of the Book-Entry Depositary's rights
and duties to a qualified successor as provided herein;

          (d)  to comply with any requirements of the Securities Act, the
Exchange Act, the Investment Company Act of 1940, as amended, the Trust
Indenture Act, or any other applicable securities laws;

          (e)  to modify this Agreement in connection with an amendment to the
Indenture that does not require the consent of the Registered Holders, or

          (f)  to modify, alter, amend or supplement this Agreement in any other
respect not inconsistent with this Agreement which, in the opinion of counsel
acceptable to the Issuer, is not materially adverse to the Registered Holder.

          The Issuer and the Book-Entry Depositary, with the consent of the
Registered Holder, can make such changes as are necessary to effect and
implement a substitution of a successor depositary for the Registered Holder.

          Except as set forth in this Section 4.12, no amendment which
materially adversely affects the Registered Holder or beneficial owners of
Interests may be made to this Agreement without the consent of the Registered
Holder or such beneficial owner.

Section 4.13.  Book-Entry Depositary To Sign Amendments.

          The Book-Entry Depositary shall sign any amendment authorized pursuant
to Section 4.12 hereof if the amendment does not materially adversely affect the
rights, duties, liabilities or immunities of the Book-Entry Depositary. If it
does, the Book-Entry Depositary may, but need not sign it.

                                       14
<PAGE>

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
as of the date first written above.

                                        TXU EUROPE GROUP PLC

                                        By: /s/ Kirk R. Oliver
                                           -------------------------------------

                                        THE BANK OF NEW YORK,
                                        as Book-Entry Depositary

                                        By: /s/ Walter N. Gitlin
                                           -------------------------------------

                                       15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]