Economic performance in E.ON UK is managed via an economic performance cycle, as illustrated below.

The strategy and planning processes are annual activities undertaken by each business within E.ON UK.

The planning process aims to:

• identify how we are going to operate to meet our strategic goals
• identify key business challenges and how we will respond to meet these
• provide mid-term financial forecasts (P+L, B/S and cash) for Group consolidation and identify what we require from Group to support the business direction.

The reporting, forecasting and feedback activities are undertaken on a monthly basis by each of our businesses.

The reporting and feedback process aims to:

• define clear financial and operational targets/KPIs for delivering the first year of the Plan (Budget)
• monitor performance against these targets to identify if the business is moving away form budget so corrective actions can be taken
• highlight the key risks facing the business.