Capacity to Customer (C 2 C) Update ENA 2012 Low Carbon Network Fund Conference 26 October 2012

1 Electricity North West Licensed distribution network operator in NW England Area: 12,500 square kilometres Key network asset statistics; 13,000 km of overhead lines 44,000 km of underground cables 84,000 items of switchgear 34,000 transformers Customer base: 2.3 million Deliver over 25 TWh pa

What is Capacity to Customers? Technical Innovation Total available network capacity Apply remote control equipment to the HV circuit and close the normal open point Enhance network management software This effectively doubles the available capacity of the circuit negating the need for traditional reinforcement New Commercial Contracts To retain customers’ security of supply we will utilise innovative demand side response contracts These contracts will allow ENWL to control the consumption of customers on a circuit at the time of fault Capacity to Customers Total available network capacity Combining proven technology and new commercial contracts Allows ENWL to release significant network capacity back to customers Facilitating connection of new demand and generation without reinforcement 2

Standard 11kV Network Configuration 3 X XX 11kV Primary busbar 33/11kV NOP Load point NOP

2 C 2 C Network Configuration 4 X X A 11kV Primary busbar 33/11kV NOP Managed Load X X A A A A

Monitoring the effect of the trial 5 We have partnered with the University of Manchester and the University of Strathclyde Strathclyde Scope of Works includes; Power System Modelling & Simulation – To inform the hypothesis that ‘C 2 C method will reduce like-for-like power losses initially but this benefit will gradually be eroded as newly released capacity is utilised’ and ‘C 2 C method will improve power quality’ Manchester Scope of Works includes; Carbon Impact Assessment – To inform the hypothesis ‘C 2 C method will facilitate a reduction in the carbon costs of network reinforcement’ Economic Benefit Analysis - To inform the hypothesis that ‘C 2 C will facilitate lower reinforcement costs for customers for the connection of a new loads and generation’ and to also consider the wider impacts on both customer and network operator’s business models.

Project startup Software design Circuit selection and methodology Customer engagement plans & survey New commercial templates and processes 2012 Project Timeline Software user acceptance testing Equipment installation & commisioning Trial ‘go live’ Recruit trial participants Carbon, economic & losses impact assessments Continously engage customers & stakeholders 2013/14 Closedown report & closure Q Learning & knowledge sharing Build & trial Design Closure 6

Contact info 7 insert file location/author/filename/version For further information please contact: Craig McNicol