Dave Openshaw UK Alpha 6 – Block 3 Barcelona May Network Asset Management as a Contracted Service Provision based on paper TFS_Openshaw_C1

Dave Openshaw UK Alpha 6 – Block 3 Barcelona May LE Group UK Networks Branch 165,000 km network 14.6 GW demand 7.7m customers b

Dave Openshaw UK Alpha 6 – Block 3 Barcelona May Asset Governance / Asset Management Model EPN Network Assets Network Management SPN Network Assets Network Service Agreement Network Service Agreement Power Networks Asset Governance LPN Network Assets Network Service Agreement LE Group Networks Branch

Dave Openshaw UK Alpha 6 – Block 3 Barcelona May UK Regulatory Model x Opening Value - Investment Depreciation Asset Value WACC Regulatory Return Operating Costs Allowed Revenue Performance Based Adjustment Assurance of Stewardship

Dave Openshaw UK Alpha 6 – Block 3 Barcelona May UK Use of System Charges £0.00 £10.00 £20.00 £30.00 £40.00 £50.00 £60.00 £70.00 £80.00 £90.00 £ Eastern Power Networks Seeboard Power Networks East Midlands United Utilities Electricity [Norweb] London Power Networks Aquila Networks [Midlands] YEDL [Yorkshire] NEDL [Northern] SE Power Distribution [Southern] SP Manweb Western Power Distribution (South West) SHE Power Distribution [Scottish-Hydro] Western Power Distribution (South Wales) SP Distribution [Scottish Power] Typical Annual DUoS Charges - Residential Unrestricted Customer

Dave Openshaw UK Alpha 6 – Block 3 Barcelona May Value - Quality vs. Price SSE North SP WPD W WPD S NEDL SSE South Aquila EME SPN EPN Manweb YEDL UU LPN £40.00£50.00£60.00£70.00£80.00£90.00£ Average annual use of system charge - unrestricted residential customer (3,750 units p.a.) 2 Customer Minutes Lost per connected customer 2001/02 1 Quality of Supply / average domestic charges Sources:1 - Company 2001/02 Licence Condition 5 Information and Incentives Project submissions 2 - Company 2002/03 Licence Condition 4 statements

Dave Openshaw UK Alpha 6 – Block 3 Barcelona May Risk Management Assurance Ofgem Asset Risk Management survey conducted in x distribution / transmission companies surveyed Performance against 3 key areas of risk audited: Business Strategy & Direction Asset & Network Strategy Asset Life Cycle Management 18- point radar plot compiled for each company