Technical Discussion on Introduction of Proposed DG4 DUoS Tariff for Local Authority Public Lighting 1st October 2009

PL & Unmetered Supplies CER Proposed Decision (April 2008) Objectives - Separation of PL Assets from DSO Networks to facilitate competition. - Transfer ‘PL Only ‘ networks to Local Authorities - Inventory Management

Progress on Implementation Two ESB/ Local Authority workgroups formed to ; - Develop Code of Practice for Work on PL on ESB Networks - Develop Asset Unbundling Plan PL Assets to be unbundled in conj with refurbishment programmes. Badly corroded public lighting equipment mounted on ESB Poles is hindering ESB Networks ability to carry out network refurbishment programme Local Authorities lack funding to address this issue. Agreement between ESB Networks, CCMA and CER to allow ESB Networks recover costs through a premium on the DUoS tariff

Requirements - Protect interests of other unmetered customers - Commence cost recovery from 1st Jan 2011 - Transparency - Provide Facility for annual reconciliation / review

Proposal Use redundant DG4 Duos Tariff ( Duplicate of DG3 DUoS tariff structure). ie single rate ( c/kWh) for all kWh. Transfer all Local Authority PL Technical MPRNs to DG4 DG4 tariff price will be equal to DG3 tariff plus agreed premium Costs incurred between 2009 and 2015 will be recovered over 5 years commencing 2011. DUoS Tariff premium approx 1.4 c/kWh to fund forecasted expenditure of € 17 m . (premium may change if forecast expenditure pattern changes or if installed PL load changes)

DR 173 - Necessary System Changes Reintroduce DG4 Duos tariff as 24 hr c/kWh rate Applicable to D-D, D-M and 24 hr PL profiles