Focus

Our future is about becoming more focused - a clear business model based on the ownership and operation of large scale asset intensive businesses, focusing on our principal growth markets of electricity and gas infrastructure in the UK and US. This includes being flexible in considering ownership of generation assets where they are already part of a business and where they fit our risk profile, with limited exposure to commodity price fluctuations. A consequence of this focus was the decision to exit our wireless infrastructure operations and our Basslink interconnector in Australia.

Integration

We aim to run our businesses in a more integrated way - organising our activities along lines of business, supported by effective and efficient shared services and information systems. This involves deploying proven processes, common systems and best practices within each business, supported by common operating principles and safety and environmental standards. In this way we will maximise the competitive advantages that come from being an international organisation. However, it is critical that we balance this with the need to provide excellent service to customers and to maintain and build local relationships with other key stakeholders.

Discipline

We plan to be more disciplined in the application of best practice. Increasingly we will standardise our approach, applying even greater rigour to financial discipline, ensuring that we have the capital to grow, but maintaining the investor confidence that comes from a disciplined approach to our balance sheet. We maintain our target of increasing dividends per ordinary share expressed in sterling by 7% each financial year through to March 2008. In addition, we have announced plans to return $1.9 billion (£1 billion) to shareholders through a share buy-back programme with respect to US stranded cost recoveries (of which we have returned £169 million in 2006/07), together with £1.8 billion from the disposal of our wireless infrastructure operations