Segmental reporting

The presentation of segment information is based on the management responsibilities that existed at 31 March 2004. Minor changes to the definition of segments were made during 2003/04, the principal effect of which was to reclassify the results of the UK Interconnectors and LNG Storage businesses from ‘UK electricity and gas transmission’ to ‘Other activities’. Comparative figures for 2002/03 and 2001/02 were restated accordingly. The result of the restatement was to reclassify £26 million and £25 million of operating and adjusted operating profit from ‘UK electricity and gas transmission’ to ‘Other activities’ for 2002/03 and 2001/02 respectively.

A review of the operational and financial performance of the reporting segments is contained in the Operating Review together with additional financial and performance information relating to the segments.