Framework Agreements relating to provision of maintenance services by Original Equipment Manufacturer

National Grid has entered into framework agreements with UK Grid Solutions, Siemens Energy Limited and Hitachi Energy Limited to enable any member of the National Grid Group to procure the design, engineering, manufacture, supply, project management, construction, erection and commissioning in respect of the OEMs' equipment. This shall include the support and/or delivery of substation interventions on the OEMs' equipment and any other business related requirements it may request from time to time and the OEMs have agreed to carry out these works and services on a non-exclusive basis upon any member of the National Grid Group placing a Call Off Order in accordance with the Framework Agreements.

The awards have been made without prior call for competition in accordance with Regulation 50(1)(c)(iii) on account of the fact that the services can only be carried out by the OEMs due to protection of exclusive rights (IP rights) and no reasonable alternative exists as National Grid does not own the IP rights to commission services from third parties. National Grid cannot simply replace the equipment rather than repair it and the scope of the frameworks is the minimum necessary to protect the OEMs' IP rights.

The frameworks each have an initial five-year term which may be extended by one of more additional period of 1-year up to a maximum of 3 additional years following the end of the initial term.

Please note that the total value figure included in Sections II.1.7 and V.2.4 is an estimate only in respect of the total three frameworks and the estimated value of the frameworks is expected to be a range of £38,000,000 - £45,000,000 per framework over the full potential term of the frameworks (including extensions). Please note, however, that the framework is intended to cover all potential services required over the full course of each framework and this figure is National Grid's best estimate based on current information and is not intended to be a cap or maximum figure which cannot be exceeded.