The National Grid Company plc

NOTICE UNDER SECTION 11(2) OF THE ELECTRICITY ACT 1989

The Director General of Electricity Supply (hereafter referred to as “the Director”), pursuant to section 11(2) of the Electricity Act 1989 (c. 29) (hereafter referred to as “the Act”), hereby gives notice as follows: (a) He proposes to modify the conditions of the Licence granted to The National Grid Company plc (hereafter referred to as “NGC”) under section 6(1)(b) of the Act by amending Schedule 3 (Supplementary provisions of the charge restriction conditions). (b) He proposes this modification to bring into effect new arrangements for NGC in relation to reactive power uplift following the consultation paper issued by the Director in December 1998. (c) The effect of the modification is to introduce revised incentives on NGC in relation to reactive power uplift for a one year period commencing on 1st April 1999 with a revised default arrangement for a second year to apply in the absence of a new agreement at that time. A copy of the proposed modification, of the consultation paper of December 1998 and of the detailed proposals setting out the new arrangements can be obtained (free of charge) from the Office of Electricity Regulation. Any representations or objections to the proposed modification may be made on or before 31st March 1999, to the Director at the Office of Electricity Regulation, Hagley House, 83-85 Hagley Road, Edgbaston, Birmingham B16 8QG. E J Saunders Authorised on behalf of the Director 1st March 1999