Study Co-Ordination on Day Ahead Capacity in Bunde/Oude Statenzijl and Ellund

1. Study Co-Ordination on Day Ahead Capacity in Bunde/Oude Statenzijl and Ellund EC-Operators of Implementation GroupERGEG Regional Gas Market North / North-West Key Operator Contacts“Interconnections, Primary and Secondary Market” Volker Schippers, E.ON GT Anke Alvermann, BEB

2. Contents • Background • Current Situation • Alternatives • Proposal • Way forward

3. First N/NW Stakeholder Group Meeting (slide I) EFET perceives that • market structures and limited availability of transport capacity between markets have a significant impact on the traded wholesale markets (hubs) and proposed that • TSOs should obtain or reserve capacity for day ahead capacity auctions • Shippers should be requested to resell unused capacity

4. First N/NW Stakeholder Group Meeting (slide II) • Auction Process proposed by EFET • until 09:00 Shippers place available capacity in the auction • until 09:30 TSO(s) publish available capacity and its nature (firm / interruptible) • 09:30 to 10:00 Auction • before 10:15 TSO(s) communicates results • Envisaged Start 1 April 2007

5. Task defined on second N/NW IG • North /North-West operators develop a study on Co-Ordination on Day Ahead Capacity • Interconnection Points • Bunde – Oude Statenzijl (H-gas) • Ellund • Operators work out study until end of December 2006

6. Contents • Background • Current Situation • Alternatives • Proposal • Way forward

7. TSOs at the Interconnection Points • Bunde / Oude Statenzijl (H-gas) • BEB • E.ON Gastransport • Gastransportservices • Wingas Transport • Ellund • BEB • Dong Energy Pipeline • E.ON Gastransport • Energinet.dk

8. Main Current Conditions:Bunde / Oude Statenzijl (H-gas)

9. Main Current Conditions: Ellund

10. Contents • Background • Current Situation • Alternatives • Proposal • Way forward

11. Short Term Capacities Product Features Organisation Allocation of Revenues Allocation of Capacities

12. Alternative Product Features Product Features • Interconnection Points • Bunde / Oude Statenzijl (H-gas) • Ellund • Entry – Exit Capacity • Separate entry and separate exit capacity • Combined entry-exit capacity • Type • Firm (primary from TSO) • Firm (secondary from shipper) • Interruptible (primary from TSO) • Interruptible (secondary from shipper) • Duration • Daily • Lead time • Day-ahead

13. Alternative Forms of Organisation Organisation • Who • TSOs • Jointly • Bilaterally • Locationally • Joint Venture • Energy Exchange • Platform • Internet Website

14. Alternatives of Allocation ofCapacities and Revenues Allocation of Capacities • Allocation of Capacities • Auction • Pro-Rata • FCFS • Allocation of Revenues • Depending on the products and specific national / European rules remaining revenues may be • reimbursed to original capacity holder (shippers or TSO) • shared between shippers and TSOs • Platform operator receives (fixed) handling fee Allocation of Revenues

15. Contents • Background • Current Situation • Alternatives • Proposal • Way forward

16. Proposal • Product features • Location: Bunde / Oude Statenzijl (H-gas) and Ellund • Combined entry and exit capacities • Interruptible capacities offered by TSOs • Duration / Lead time: day ahead daily capacity • Organisation • TSOs • Allocation of Capacities • Auction • Allocation of Revenues • TSOs receive the revenues

17. Contents • Background • Current Situation • Alternatives • Proposal • Way forward

18. Way Forward • 9 February 2007 • Discussion on North / North-West stakeholder workshop in Bonn, Germany • After the Workshop (in case of agreed-upon solution) • Check of national implementability (national rules / market) • Development of specification and implementation plan • Definition of starting date