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 Condition 4A (Restrictions on revenue) and Schedule 3 (Supplementary provisions of the charge restriction conditions).   (b) He proposes these modifications to bring into effect new arrangements for NGC in relation to transmission services uplift and reactive power uplift following the consultation paper issued by the Director in December 1997.   (c) The effect of the modifications is to introduce revised incentives on NGC in relation to transmission services uplift for a two year period commencing on 1 April 1998, with a revised default arrangement for a third year to apply in the absence of a new agreement at that time. The effect of the modifications is also to introduce revised incentives on NGC in relation to reactive power uplift for a one year period commencing on 1 April 1998, 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 modifications, of the consultation paper of December 1997 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 modifications may be made on or before 31 March 1998, 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 2 March 1998.