1. Telegestore Paris, February 2003

2. Remote Management System for the Entire Energy Distribution Process Enhances the Role of Low Voltage Network as a Means of Communication Innovation for Customers’ Relationships The Telegestore

3. The Most Extensive Two-Way Communication Network A New Network Linking 30 Million Customers A world-class Italian Technology The Telegestore Project

4. The Telegestore It is not a standard electric meter It is not a simple remote-reading system It is an innovative system of energy metering and customer management It is a customer management system able to read, acquire and aggregate customer data remotely

5. Changes in metering services From traditional meter…. …..to TELEGESTORE™ Electro mechanic Detect just the energy consumption Solid state Collect all key parameter of electricity distribution Reading, verification, contract management only manually w/ dedicated men Rigid tariff offer Most activities performed remotely,w/o impact on Customer Tailored tariffs proposal Enel is the first launching such an innovative reengineering of distribution and Customer management

6. Collection Bad debts Customer Service Invoicing Reading Checks on operating meters No-invoicing for thefts-failures Self- consumption Purchasing* Revision Transf. Repair.* Internal transportation Warehouses Activation/ Deactivation Interventions for failures Failed accesses Commercial or technical replacement Installation and recovery Telegestore – Savings on Utility process costs * traditional meter Revenue protection Purchasing and logistics Field operations Customer service

7. Activation de-activation Verification Curtailment Meter reading Credit Collection New Commercial Offers Traditional Commercial Offer Energy Management Customer Service Claims Customer Future Customer Management

8. Technically the“Telegestore” is a system of electronic interconnected equipments made of: An integrated equipment for metering, data transmission and data management A Concentrator of data from the Meters. It is located in secondary distribution substation A Central System for data aggregation and the management of the whole process The Meter The Concentrator The Central System Metering in compliance with International Standards (CEN 61036, CEN 61268); Data transmission (Both metering and managing customers) in compliance with Actual obbligatory rules (CENELEC EN 50065-1 in the range A)

9. GSM - Traditional Communication Network Intranet PLC 2.5 Kbps MV/LV Substation Commercial System (CRM) Centralised Remote Management System Interface Communication Software Concentrator Meters Data Communicati on Centre System Architecture CTGN-CTGT Operation center Indoor services Total: 30 Millions Total: 345.000 Total: 14 2 national 12 local

10. The Telegestione process (Architecture and figures) From the next December the activities will run in definitive mode for the all customers with electronic meter The Telegestione operative activities started in September in pre-exercise mode involving 1.000 customers

11. Standard Class 1 Active and Class 2 reactive in compliance with CEN 61036, CEN 61268 Cenelec band A (CEN EN 50065-1), 82 kHz (primary carrier frequency) or 75 kHz (secondary carrier frequency) FSK, 2400 Bps TCP/IP: ANSI/EIA 709.2-A-2000 LONTALK ™ANSI/EIA 709.2-A-2000 Two way authentication Data transfer security Communication protocol Public Network Measurement DLC Communication

12. Key figures - Italian program Investments 2.100 Millions Euro approximately External resources (managed by Enel.si) 4.000 / year Enel Distribuzione human resources 4.000 / year Period of replacement 2001 - 2005 Meters to replace 30 Millions

13. Meters installed:6.000.000 ~ 14.000.000 by year end State of replacement plan (January 2003) Concentrators installed: 60.000

14. Production Areas Shenzhen (CINA) Tiszaujvaros (Hun) Pagani (SA) Caluso (TO) Vimercate (MI) Bergamo (Bg) Vimercate (MI) Bergamo (Bg) S.Palomba (RM)

15. Something will change in the relationship with customer Availability of “Time of Use” tariffs and customised tariffs Deregulated customer could be managed without change of assets No more estimated bills; real time measure of consumption for each bill Improvement of quality in commercial activities; In activation or contract changes, time goes from days to minutes Indicators for Network Quality are strongly monitored Opening a new communication channel to customers home in order to supply Value Added Services and measure gas, water and heat supply

16. Billing on real readings Advantages for customer Flexibility (tailored) of billing period No wrong readings and decrease of customer dispute Quicker solution of dispute with customer (spot reading on request) Flexible tariff structure Simple customer contractualisation No need of customer presence for readings, contract activation, de activation or contractual power modification Increase of comfort and consumption optimisation Improvement of Service Quality and optimisation of Service Cost

17. Advantages for the market All customers will benefit from the system even if they are not eligible Demand side management (see California crisis) Improvement of losses information, calculation and regulation Improvement on load forecast Improvement on new pricing initiatives Improvement of quality of service information and regulation Control of fraud Improve of settlement, invoicing processes and imbalance allocation Advantages for the Authorities: data collection Avoiding the need of Load profiling Improvement of guarantee of supply regulation New metering services More selling competition