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

The Director General of Electricity Supply (“the Director”) hereby gives notice pursuant to section 11(2) of the Electricity Act 1989 (“the Act”) as follows: (i) The Director proposes to modify the conditions of the generation licences granted under section 6(1)(a) of the Act and held by Alcan Aluminium UK Limited, Keadby Developments Limited, AES Fifoots Point Limited, Great Yarmouth Power Limited and South Coast Power Limited (“the Generators”), by inserting in Schedule 2 a new paragraph 7 (Compliance with the Settlement Agreement for Scotland) and amending paragraph 1 of Schedule 2. (ii) The effect of the modifications is to introduce a new obligation to require each Generator, in so far as it constructs or operates a generating station within Scotland, to comply with the provisions of the Settlement Agreement for Scotland (“the Agreement”). (iii) The purpose of the modifications is to require the Generators, where it is relevant to do so, to comply with the new trading arrangements established by the Agreement for the purpose of facilitating supply competition within Scotland. A copy of the proposed modifications may be onbtained, free of charge, from the Office of Electricity Regulation (OFFER). Any representations or objections to the proposed modifications may be made on or before 23rd March 1999, to Ms Julie McGuiness, OFFER, Regent Court, 70 West Regent Street, Glasgow G2 2QZ. D.Wilson, Deputy Director for Scotland, authorised on behalf of the Director General of Electricity Supply. 23rd February 1999.