Changes to ESTA boundaries in Scotland and Western Routes Dear colleague,

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1 Alan Bullock Senior Analyst The Quadrant: MK Elder Gate Milton Keynes MK9 1EN To: Traction Electricity Steering Group (TESG) 15 th December 2016 Changes to ESTA boundaries in Scotland and Western Routes Dear colleague, 1. Purpose The purpose of this letter is to notify you about our proposals to change the boundaries of the Electricity Supply Tariff Areas (ESTAs) in the Anglia and West Coast Routes. We are writing to you about this now, since the electrification works are due to complete in February The change was briefed to the Traction Electricity Steering Group on the 12 th December Structure This letter is structured as follows: Background; Gospel Oak to Barking electrification and current ESTA configuration; Proposed change; Minor Amendments; Next steps; Annex A ESTA diagrams; Annex B ESTA definitions; 3. Background ESTAs are used to charge train operators for Electric Current for Traction (EC4T). In particular, the year-end volume reconciliation and (for CP5) delivery costs for the year-end cost-reconciliation are calculated by ESTA; and the uplift on metered consumption to reflect transmission losses varies by ESTA. ESTAs are primarily defined by the physical electrical boundaries between Grid Supply Points (GSP). On the AC overhead line system GSPs are bounded by insulated areas known as neutral sections. It is possible, through switching, to extend feeding areas to cover maintenance and/or operational outages of adjacent GSPs. Most GSPs have two separate circuits which effectively back each other up. Where possible, ESTA boundaries are located between two double circuit GSPs. There are currently 16 AC only ESTAs. The DC systems are continuous at the DC third rail so it is not possible to specify boundaries by way of neutral sections. For this reason the DC systems are not split across GSP boundaries. There are currently two DC only ESTAs: one for the south of England (ESTA U) and one in Merseyside (ESTA M). There are also two ESTAs (R and T) where both AC and DC power is provided and billed. 3.1 Transmission Losses Currently, operators who are charged by way of metered data are charged an uplift on their metered consumption, to recover the cost of electrical losses between the GSP meter and the train meter and this is known as the distribution system loss factor (DSLF). The DSLFs vary by ESTA and are fixed for CP5. They are published in Appendix 3 of the Traction Electricity Rules (TER) Delivery Charges Delivery charges recover the costs incurred by Network Rail in respect of the delivery of traction electricity from the power station to Network Rail through transmission and distribution networks for each GSP. These charges are also differentiated by ESTA because delivery charges vary by GSP. The charges relating to each GSP are grouped according to ESTAs, giving a reasonable compromise between data processing and localised charging. 3.3 Physical ESTA changes ESTA boundary changes are normally required if a new GSP or new electrification is introduced in such a way as to change 1 :

2 the location of the boundary neutral section. This would reflect a physical alteration to the EC4T network, most likely as a result of new electrification. These changes may be permanent or temporary. To ensure operators are correctly charged for their EC4T usage, any changes to the ESTA boundaries within the billing system need to be synchronised with the physical changes, which could occur at any time during a control period. 3.4 ESTA descriptions ESTA definitions are currently set out in Appendix 5 of the TER 1. Any contractual changes to the descriptions of ESTAs may be formally amended through the change provisions for the TER, which are to be included in the TER. 4. Gospel Oak to Barking electrification and current ESTA configuration 4.1 Background The electrification of the Gospel Oak to Barking line is due to complete in February 2017 and will be supplied from 2 existing Supply Points: Willesden 25kV in ESTA T and West Ham in ESTA O. 4.2 Current ESTA Configuration The current contractual definitions (set out in Appendix 5 of the TER) state that ESTA O London Tilbury & Comprises the overhead line electrified London Tilbury and Southend routes from Southend Fenchurch Street to Shoeburyness via Laindon, Rainham and Chafford Hundred; the route from Barking to Forest Gate Junction; and the route between Gas Factory ESTA T Line South The DSLFs are the 3.21% for ESTA O and 3.41% for ESTA T. The current ESTA configuration is illustrated in Figure 1 in Annex A. Junction and Bow Junction. Comprises the Line routes from Euston to the neutral sections at Berkswell and Nuneaton; the third rail electrified lines from Euston to Watford Junction; the West London Line to midway between North Pole Junction and the Westway Road Bridge; the North London Line between South Acton and York Way (north of Kings Cross) and the route between the Primrose Hill tunnels and Camden Road.. 5. Proposed Change The newly electrified line from Gospel Oak to Barking potentially includes four new neutral sections: one to the east of South Tottenham station which will form a new ESTA boundary between ESTAs O and T and; one on the South Tottenham curve which will form a new ESTA boundary between ESTAs Q and T; one on the Haringey link to the Line (ESTA R); and one on the Junction Road Junction to Carlton Road Junction link to the Midland Main Line (ESTA N), though this one may be installed sometime after the main route has been completed. Approximately 9km of double track will be added to ESTA O and approximately 7km added to ESTA T. This compares to the existing 125km of double track in ESTA O and the 350km in ESTA T, which means there won t be a material change to the DSLF values of each ESTA. The new arrangement is illustrated in Figure 2 in Annex A The contractual ESTA descriptions will change as follows: ESTA O London Tilbury & Comprises the overhead line electrified London Tilbury and Southend routes from Southend Fenchurch Street to Shoeburyness via Laindon, Rainham and Chafford Hundred; the route between Gas Factory Junction and Bow Junction and the routes from Barking ESTA T Line South The minor changes to other ESTA descriptions are included in Annex B. 6. Minor Amendments to Forest Gate Junction & South Tottenham. Comprises the Line routes from Euston to the neutral sections at Berkswell and Nuneaton; the third rail electrified lines from Euston to Watford Junction; the West London Line to midway between North Pole Junction and the Westway Road Bridge; the North London Line between South Acton and Camden Road and the route between the Primrose Hill tunnels and Camden Road. Following a thorough review of the ESTA descriptions and neutral section locations, a number of minor amendments were also identified as follows: 6.1 Scotland One boundary was stated in the recent Scotland changes as being at Gunnie but should actually be at Gartosch and Garnqueen. The definitions are corrected in Annex B: 6.2 Western L becomes I to avoid any potential clashes of system type / names within TABS. K (Wales) and Y (Crossrail) may have to change once testing of numbered ESTAs is completed. 6.3 North London area The neutral section at York Way has been removed and replaced with 2 neutral sections near Camden Road Junction, approximately 1km to the west of York Way. As a result, many of the interfaces with HS1 and the East Coast route are now with ESTA P instead of ESTA T.

3 In addition the link from the Thameslink tunnel under St Pancras to the East Coast route has now been completed which introduces a new boundary at Midland Road between ESTA N and ESTA R. All of these North London changes are also illustrated in Figures 1 and 2 in Annex A For completeness, a full list of the new ESTA definitions is included in Annex B 9. Next steps We are inviting submission of written representations in respect of these proposals. Please send your responses, in electronic format, to Aaren.Healy@NetworkRail.co.uk by Friday 13 th January Subject to no material modification, we will, as soon as is reasonably practicable, submit these proposals to ORR for approval. All of the changes can be implemented immediately as none are dependent on physical changes to neutral section locations. If you would like to discuss any of the issues in this letter and its annexes, please contact Alan Bullock. (Alan.Bullock@networkrail.co.uk). Yours sincerely Alan Bullock Senior Analyst

4 Annexe A ESTA Diagrams Fig 1: Existing North London area Fig 2: Proposed North London area

5 Annex B: ESTA Definitions ESTA ESTA Name Description M Merseyside Comprises the Merseyside third rail electrified system between Liverpool, Southport, Ormskirk, Kirkby, Hunts Cross, Ellesmere Port, Chester, New Brighton and West Kirby. N Midland Main Line Comprises the overhead line electrified routes from London St Pancras and City Thameslink to Bedford. There is a link to the East Coast at St Pancras and a planned link to the Gospel Oak to Barking line at Carlton Road Junction. O London Tilbury & Southend Comprises the overhead line electrified London Tilbury and Southend routes from Fenchurch Street to Shoeburyness via Laindon, Rainham and Chafford Hundred; the route between Gas Factory Junction and Bow Junction and the routes from Barking to Forest Gate Junction & South Tottenham. P Great Eastern Comprises the electrified Great Eastern Main Line routes from Liverpool Street to Bow Junction, Upminster, Southend Victoria, Southminster, Braintree, Clacton, Walton-on Naze, Harwich Town and Norwich; the West Anglia route from Liverpool Street to Hackney Downs station; the Lea Valley Line between Stratford and Coppermill Junction, the ac & dc section of the North London Line route between Stratford and Camden Road and the various interfaces with HS1 & East Coast north of Kings Cross/St Pancras. There is a boundary with TfL on the curve between Dalston Junction and the North London Line. Q West Anglia Comprises the electrified West Anglia routes from Hackney Downs station to Chingford, Enfield Town, Hertford East, Stansted Airport, Cambridge and Kings Lynn; the electrified route between Cambridge Junction (on the Line near Hitchin) and Cambridge and up to the neutral sections at South Tottenham and Coppermill Junction. R A B C Line South Line Central Line North Line Leeds Comprises the electrified Line from Kings Cross to the neutral section at Tallington (between Peterborough and Grantham), the electrified route between Moorgate and Finsbury Park; the electrified route between Canonbury West Junction and Finsbury Park; the Kings Cross Incline between Camden Road East Junction and Freight Terminal Junction and the link to St Pancras Thameslink. A new link to the Gospel Oak to Barking line will also be added. Comprises the electrified Line between the neutral sections at Tallington (between Peterborough and Grantham), South Kirkby and Hambleton Junction (between Doncaster and York). Comprises the electrified Line between the neutral sections at Hambleton Junction (between Doncaster and York) and Chathill (between Alnmouth and Belford). Comprises the electrified Line between the neutral section at South Kirkby and Leeds, Bradford and Skipton. S Scotland Glasgow Comprises the electrified routes in Scotland between the neutral sections at Gartosch, Garnqueen, Coatbridge, Auchengray (between Edinburgh and Carstairs), Carstairs, Lochwinnoch, Bishopston and Rutherglen.

6 ESTA ESTA Name Description D Scotland East Comprises the electrified routes in Scotland between the neutral sections at Chathill (between Alnmouth and Belford), Auchengray (between Edinburgh & Carstairs) and Haymarket. E Scotland North & West Comprises the electrified routes in Scotland on the North Clyde bounded by the neutral sections at Rutherglen, Gartosch, Garnqueen, Coatbridge and Haymarket; the routes from Bishopton neutral section to Gourock & Wemyss Bay and the routes from Lochwinnoch neutral section to Ayr & Largs. F Scotland WCML Comprises the electrified routes in Scotland between the neutral sections at Penrith and Carstairs. T G H J Line South Line Central Line West Midlands Line North Comprises the Line routes from Euston to the neutral sections at Berkswell and Nuneaton; the third rail electrified lines from Euston to Watford Junction; the West London Line to midway between North Pole Junction and the Westway Road Bridge; the North London Line between South Acton and Camden Road and the route between the Primrose Hill tunnels and Camden Road. Comprises the Line routes between Nuneaton and Stafford (Whitmore) / Macclesfield (Prestbury) bounded by the neutral sections at Nuneaton, Queensville (Stafford), Whitmore, Kisdsgrove and Prestbury. Comprises the Line routes around Birmingham between the neutral sections at Berkswell and Queensville (Stafford). Comprises the Line routes between the neutral sections at Whitmore, Kidsgrove, Prestbury and Penrith including the Liverpool and Manchester areas. It will also include all new electrification in the Manchester to Blackpool area and towards Leeds. U Southern Comprises all third rail electrified routes south from Farringdon, Cannon Street, Charing Cross, London Bridge, Waterloo and Victoria, to the Network Rail/Eurotunnel boundary; the Network Rail/HS1 boundaries at Ebbsfleet & Fawkham Jn; the West London Line to the south of North Pole junction and west to, Reading, Basingstoke and Weymouth; and the North London Line between Richmond and Acton Central. There are boundaries with TfL at East Putney, Gunnersbury- Turnham Green and New Cross Gate. I Western temporary There are boundaries with non-electrified routes at: Dorchester South Jn, Worgret Jn, Hamworthy, Totton Jn (West), Redbridge Jn, 600m south of Northam Jn, Easleigh East Jn, Worting Jn, Basingstoke GW Jn, Reading Spur Jn, The following routes are not electrified within the above area: Wokingham Jn to Aldershot Jn South; Shalford Jn to Reigate (Level Crossing); Hurst Green Jn to Uckfield; Ore (582935, , ATH 81m 225yds) to Ashford d Jn; Old Kew Jn & New Kew Jn to South Acton Jn; Angerstein Jn to Angerstein Wharf; Hoo Jn to Grain; Maidenhead to Swindon while this section operates as an electrified island.

7 ESTA ESTA Name Description V Western Comprises the electrified route from Paddington to Maidenhead. There will also be neutral sections at Westbourne Park (Crossrail), Old Oak (Crossrail Depot) and Acton Wells (North London Line). W High Speed 1 St Pancras International to Eurotunnel Boundary