1. Mod 186 January 2009

2. 2 Assumptions No provision for TMA, Tax or Exit re-openers at this time (zero value in 2009/10 expected). AQ Review impact in October 2009 – SOQs to fall by 1% in North West, 2% in East of England and London and 3% in West Midlands. RPI – 2009/10 December forecast in Mod186 so marginal impact (December forecast at 1% - actual was 0.9%). 2010/11 = 0%, 2011/12 = 2%, 3% thereafter. Forecast revenues from 2008/9 (January to March 2009 income forecast and the allowed revenue for 2008/9 closes out around July 2009). 2009/10 allowed revenues based on planned activities at the beginning of January – expect some changes before definitive prices are released. Prices depend on load band due to reversal of DNPC03 scaling used in October 2008. This is due to the change from October to April pricing year.

3. 3 East of England East of England prices have decreased from previous mod 186 forecasts mainly due to revised replacement forecast changes. decrease of ~15m in MAR minor offset with 2% SOQ reduction

4. 4 London London prices have increased from previous mod 186 forecasts mainly due to increasing planned work loads associated with replacement. This is related to the 2012 Olympics. MAR increase by ~11m and 2% SOQ reduction

5. 5 North West North West prices have increased from previous mod 186 forecasts mainly due to revised replacement forecast changes. Increase of ~10m in MAR

6. 6 West Midlands West Midlands MAR down against previous Mod186 but offset by SOQ reduction of 3%