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Press Release: UK Electricity Supply & Distribution Business Development Report

Released: March 2010

After researching the UK electricity supply & distribution business development and taking into account various other factors the following conclusions can be drawn from MBD's report:

Market Review 2005-2009:

MBD believe capital expenditure by the DNOs in the UK increased in every year between 2004/05 and 2008/09. In the latter year, spending rose by an estimated 7% to £1695.5 million, equivalent to overall growth of 56% compared with 2004/05. Annual growth peaked at 22% in 2007/08. The need to extend the existing network to meet increasing demand is driving investment upwards.

Market Forecast 2010-2014:

Total capital expenditure by the electricity distribution operators is expected to increase during most years up to 2013/14, although annual growth levels are not expected to exceed 5% in real terms. In 2013/14, capital expenditure is anticipated to reach £1890.8 million (at 2008/09 prices), representing overall growth of 12% in real terms compared with 2008/09. Anticipated growth is a reflection of increased electricity demand, the need to repair and replace the ageing infrastructure and the linking of the networks to renewable generation.

Note to Editors:

MBD specialises in business to business market research. The range of reports and industries in which we operate in is constantly expanding (our portfolio comprises of more that 140 titles). All our reports are written by in-house market consultants.

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