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LOCAL LOSS FACTORS - APPLICABLE FROM 1 JULY 2002

The metered energy (in kWh) measured by the Metering Equipment at each ICP is to be multiplied by the appropriate Loss Factor in order to calculate the equivalent energy at the GXP supplying that ICP, for the purposes of the Reconciliation Agreement and the Registry.

The Loss Factor (appearing below) into which each ICP falls will be determined by the point within the Distribution Network and voltage at which the metering for that ICP takes place, together with the particular circumstances of supply.

Local Loss Factors for ICP’s connected to the Northpower network

Loss Group	Metering Voltage	Capacity Group	Loss Factor
L0	33kV	Metered at the GXP	1.000
L1	33kV	ICP 0000546037N9E6	1.016
L2	11kV	All 11kV metered ICP’s	1.027
L3	400V	150kVA and above	1.059
L4	400V	Less than 150kVA (Note 1)	1.059
L5	230/400V	Less than 150kVA (Note 2)	1.059

Note 1 - ICP’s in Loss Group L4 are those less than 150kVA supplied directly from the 400 Volt terminals of a distribution transformer by a service line comprising less than 50m of 3 phase 185mm² aluminium conductor cable or equivalent resistance characteristics.

Note 2 - ICP’s in Loss Group L5 are those supplied via the 400 Volt distribution network that do not fall into the category specified in Note 1 above.

The above local loss factors may be added to, altered, modified or deleted at any time at the sole discretion of the Distributor.

The following is an illustration of how the local loss factors are to be applied:

Suppose the meter at an ICP in Loss Group L5 records a net usage of 1000 kWh for a month. The equivalent energy at the GXP supplying that ICP is deemed to be 1.059 x 1000 kWh = 1059 kWh.