61 Distribution Through its subsidiary, Central Networks, E.ON UK owns and operates the electricity distribution system for central England, providing a reliable supply of electricity to 9.4 million people in an area that extends from the Lincolnshire coast in the east to the Welsh borders in the west and from Derbyshire in the north to Bristol in the south. Central Networks' key task going forward under the recently announced DR5 agreement is to modernize and adapt its network to meet the needs of a changing energy industry. This includes deploying state-of-the-art technology to make the network even safer, more efficient, and more reliable. Retail E.ON UK tailors a wide range of products and services to meet its customers' individual energy requirements. In addition, we're committed to helping our customers improve the energy efficiency of their homes, communities, and businesses. As part of this effort, E.ON UK has installed insulation in over 350,000 customer homes since 2006 and also conducted programs to promote energy-efficient boilers and smart metering. Each of these mea- sures takes us one step closer to a low-carbon future. During 2009, we also met customers face-to-face in several cities across the U.K. at our Winter Advice Bureau, where we helped provide direct advice on everything from choosing the right tariff to heating homes in the most efficient manner. We also continue to help in the fight against fuel poverty, which is why E.ON UK has intensified efforts to identify and help vulnerable customers. As well as direct support, we have undertaken a special project that will study the best way to help 100 consumers get out of fuel poverty over the course of 100 days. We believe that this will provide a unique insight into how fuel poverty can be tackled through partnerships with other organizations. Developing tomorrow's technologies today Cleaner coal can play an important role in the transition to a low-carbon economy. That's why we're conducting and supporting CCS research and development. If CCS is proven on a commercial scale, it will enable us to continue to use coal--an abundant and relatively cheap energy source--to generate electricity while considerably reducing its carbon emissions and helping to keep energy affordable. We also believe that microgeneration has a bright future. Microgeneration refers to small-scale power and heat technologies like micro wind turbines, biomass boilers, micro CHP units, heat pumps, solar thermal heating, and solar power. E.ON UK has formed partnerships with leading manu- facturers to develop these technologies. You'll find E.ON's consolidated financial statements and related commentary in our Financial Report. Want to know more about our U.K. market unit? eon-uk.com Teaching old digs new tricks: pioneering E.ON 2016 House enters phase two Homes produce 28 percent of the U.K.'s CO2. So to cut carbon significantly, they'll have to be up- graded. That's where the E.ON 2016 House comes in. It's a replica of an energy-inefficient, 1930s- style semi-detached home, and thanks to high-tech measuring and sensing equipment, it's also a cutting-edge research laboratory to investigate how a typical suburban home could be progressively upgraded to reduce its carbon emissions to near zero, the standard the U.K. government has set for new homes built after 2016. The three-year project entered its second phase in the summer of 2009. This involved installing a package of upgrades--including super insulation, double glazing, and energy-efficient appliances and light bulbs--aimed at cutting the home's energy use by 25 percent. There will be a second upgrade in the summer of 2010 aimed at reducing the home's emissions im- pact to zero. By identifying practical, cost-effective upgrades, the project will help demonstrate to millions of homeowners how to use less energy, live sustainably, and save money on their utility bill. U.K. Market Unit Our Structure