1. 1 Cara Blockley Low Carbon Projects Manager Future Distribution Networks 15 October 2013

2. 2 Overview An introduction to Electricity North West Low carbon challenge Innovation Customer choice 2

3. 3 Our heritage Acquisition of UU Electricity Services: Integrated operations, pure electricity focus Sale of United Utilities Electricity to private investors Privatisation: Norweb plc Electricity nationalisation: North West Electricity Board North West Water takeover of Norweb: United Utilities 2010 1948 1990 1995 2000 2007 PrivatisationTransformation Norweb supply business sold

4. 4 Connecting the North West We distribute electricity to 2.4 million domestic and industrial locations 23.5 terawatt hours of electricity is consumed across our distribution area annually Key assets are overhead lines, underground cables, switchgear and transformers Laid end to end our lines and cables would stretch 1 ½ times around the world!

5. 5 UK energy challenges 2013 position 1/3 rd electricity, 1/3 rd gas, 1/3 rd oil 2020 34% reduction in CO 2 40% from wind / PV and new nuclear 5% transport 120,000 EV / hybrid 26m smart meters fitted 2050 80% reduction in CO 2 Doubling in electricity demand Future plans Traditional reinforcement unaffordable DG represents the most immediate challenge

6. 6 The scale of the challenge

7. 7 Innovation focus Electricity North West is leading work on developing smart solutions to our future challenges We target innovation at specific stakeholder and customer needs Developing new equipment and technologies to deliver step changes in customer service Our strategy is to deliver additional value from existing assets We have been awarded over £20 million of funding from the LCN Fund, for our two flagship projects Customer Load Active System Services Capacity to Customers

8. 8 Customer choice Electricity North West are switched on to the needs of their customers, supporting economic investment and growth The main priority is “keeping the lights on” and investing to meet future demand The future brings significant opportunities for exploring how to configure the network and give customers choice – New commercial arrangements – Adoption of low carbon technologies

9. 9 Summary 9 Low carbon future will bring new challenges Getting ready Engaging with customers is a key part of our trial work Industry is preparing by providing funding for trials The future will give us an opportunity to change the way we work and provide flexible solutions ChangeCustomers The challenge

10. 10 Contact details Cara Blockley Low Carbon Projects Manager +44 (1772) 848810 cara.blockley@enwl.co.uk Electricity North West Limited Hartington Road Preston Lancashire PR1 8LE 10