June 2003 Structure of Electricity Distribution Charges Next Steps Martin Crouch Director, Distribution

June 2003 Implementation Timetable  8 August – Responses due  August 2003 – ISG formed  September & October – First and second meetings of ISG  October 2003 – ‘Initial decision’ document published  July 2004 – ‘Implementation update’ document published  April 2005 – new regime implemented

June 2003 Implementation Steering Group  Group to be chaired by Ofgem  Aim of the ISG will be to steer the implementation stage of the project - generating ideas, discussing proposals and making recommendations  ISG will provide a forum for discussion, but will not act as a formal decision making body and will not preclude a full consultation on the issues  Ideally group will consist of approximately 12 individuals (plus Ofgem), representing all industry sectors and representatives of all DNO groups

June 2003 Implementation Steering Group  First meeting of the group in September 2003 –Agenda Terms of reference DNOs to set out proposed approach All parties to discuss requirements of Ofgem  Second meeting in October 2003  Thereafter group to meet approximately bi-monthly  Possible expert ‘sub-groups’ to support ISG  Draft terms of reference given in June 2003 document

June 2003 Change and Co-ordination  Licence modifications  Introduction of GDUoS agreements?  Revised industry governance arrangements?

June 2003 Promoting choice and value for all gas and electricity customers