6th GRI SSE SG Meeting, Gdynia, Poland, 26 June 2009

1. 6th GRI SSE SG Meeting – Hosted by URE & GAZ-SYSTEM SA 6th GRI SSE SG Meeting, Gdynia, Poland, 26 June 2009

2. 1.1 Agenda

3. 1.1 Agenda

4. 1.2 Approval of the minutes of the 5th SG meeting To be found under: http://www.energy-regulators.eu/portal/page/portal/EER_HOME/EER_INITIATIVES/GRI/South_South_East/Meetings1/IG_meetings/6supthsup%20SSE%20IG/AD

5. 3.1 Answer to DG TREN on s-t SOS measures Preparation of national emergency mechanisms • Austria: amendment to the Energy Emergency Data Order for Gas will be adopted by 1 July 2009 • Czech Republic: the process on how to execute supply restrictions will be defined by DSOs and TSOs • Hungary: change of restriction categories on the basis of discussions with stakeholders is forseen • Slovakia: amendments to the Energy Act and Regulation in force since15 March 2009, with an extension of powers of the Ministry of Economy related to the underground storage capacity

6. 3.1 Answer to DG TREN on s-t SOS measures Crisis management mechanisms and their implementation • Czech Republic: more precise definitions of „State of emergency“ and „Preventing a state of emergency situations“ in the secondary legislation are needed for making emergency mechanisms fully operational • Greece: DESFA to draft and submit an emergency plan to be approved by the Minister for Economic Affairs with the simple advice from the Greek regulator (RAE) Access to strategic storage • Hungary: the process on how gas in strategic storage can be accessed will be further clarified. A change in the respective legislation is foreseen to enable the TSO to nominate strategic stocks.

7. 3.1 Answer to DG TREN on s-t SOS measures Reverse flows • A list of possible reverse flow investments has been indicated • Germany – Austria • Austria – Slovakia • Italy – Slovenia – Austria • Greece – Bulgaria • Turkey – Bulgaria • Romania – Bulgaria • Romania – Bulgaria / Romania Hungary European Economic Recovery Plan • Timing issues for accessing funds and the related award have been raised

8. Guidelines for importing and supplying natural gas to customers Gdynia, 26 June 2009

9. 1) Initiative • Idea on report derived in November 2008 at the RCC meeting: • to issue templates on how Traders and Shippers could enter each gas market • to avoid information asymmetries • As, according to PwC Study: • administrative ând regulatory impediments to market access exist (no english versions of documents available) • the period of time required for obtaining a trading licence is a significant barrier to gas trading in many countries • To gather requested information: 1. National Authority & Legal Basis for the issuing of trading licences a. For the delivery of natural gas at the border c. Selling natural gas directly to a customer d. Supplying balancing energy e. Transit through the national market 2. Procedure & Timetable 3. Costs 4. Additional Information

10. 2) Participation

11. 3) National Authority & Legal Basis • Austria: • “Natural Gas Act” / E-Control is competent authority • Bulgaria: • “ Energy Act“ / SEWRC is competent authority • Only a single licence each for transmitting, distributing and storing natural gas to be issued • Czech Republic: • “Energy Act (Act on the Conditions for Business and State Administration in the Energy Industries)” / ERU is competent authority • Trading activities according to public notice “Rules for the organisation of the gas market” • Italy: • “Natural Gas Act Decreto legislativo 23 maggio 2000 n. 164” (d.lgs 164/00)” • Poland: • Energy Law Act from 10th of April 1997 - The President of the ERO responsible for: issuing new licences for market entrants, licensing entrepreneurs of energy markets, approval of tariffs (distribution, transmission and trade), control of energy activity, promotion of competition • For TSO / 6 DSOs: transmission/distribution network & deals with balancing and system congestion management • Slovenia: • “Energy Act”, Energy Agency of Slovenia is competent authority to issue trading licenses • General conditions for the supply and consumption of natural gas from the transmission network have to be obeyed

12. Requirements for the delivery of natural gas at the border • Austria: • delivery contract at the entry or delivery point • Service Agreement with the Hub Operator at the entry point • Contract with a retailer/supplier, already member of a Balance Group • The representative of the Balance Group nominates “external schedules” • Bulgaria: • Natural gas extraction companies may conclude transactions for transmitting, distribution and storing gas with the licenced companies • Natural gas extraction companies may construct direct natural gas pipelines between each other and to the cunstomers • Czech Republic • Gas Transmission agreement with TSO (incl. Balancing) • Proof of financial elegibility • Imported gas can be sold at Virtual Trading Point • Italy • Authorization to import natural gas if the gas is produced in non UE countries. In this case the supplier must dispose of a volume of strategic storage equal to 10% of the annual volume of the gas he plans to import; • dispose of adequate transmission capacity if the gas is delivered within the Italian network (see section 2.c for the prerequisite regarding access to the network); • Poland • A supply and delivery contract at the entry or delivery point. • Natural Gas volumes can also be transported to the entry point at the Polish border via own transport capacities. In this case licence for foreign trade activity is required, granted by the President of the ERO. Also an agreement with TSO for natural gas transport service is needed • Slovenia • An access contract for access to transmission network • Supply contract at the entry or delivery point • Balancing contract with the transmission system operator • The representative of the Balance Group nominates the intake at the entry point for which the corresponding nominations must be made

13. b) Requirements for selling natural gas directly to a customer • Austria: • requirements as in point a) • Notification of trading activities to ECG via letter / business licence (Trade Law) • Establishment of a new Balance Group / Membership in existing • Acquirement of new customers according to switching order • Allocation of capacities at entry points & Risk for allocated and nominated volumes born by Balance Group Representative • Czech Republic: • Gas Transmission Agreement with TSO. Conditions - see a1. • Booked transmission capacity for exit point or points. • Acquirement of new customers respecting the „Switching a supplier“ rules. • Gas distribution Agreement with relevant Distribution System Operator • Italy: • Seller must dispose of the gas volumes modulation capacity required by its customers & demonstrate the origin of the gas and the reliability of the transmission system; • dispose of adequate technical and economical capacity. • Poland: • Selling natural gas according to the Polish Energy Law Act require a licence granted by the President of the ERO (exemption: if annual turnover value does not exceed the equivalent of EUR 100,000) • Licence for foreign trade activity granted by the President of the ERO. • Gas shall be delivered upon prior connection to the grid, on the basis of a sale agreement and an agreement on transmission or distribution services • Sale agreement, Transmission or distribution agreement, Transportation contract from entry to exit point, Licence for distributinon of natural gas activity, Agreement with SSO • Slovenia: • Supply contract with the customers • An access contract for access to distribution and/or transmission network • Balancing contract with the representative of Balance group • Licence for supplying

14. c) Requirements for supplying balancing energy • Austria: • See delivery to final customers • AGGM / AGCS – Merit Order lists – hourly imbalance results in • Bulgaria: • Supplier needs to be registered under the Commercial Code or under the national legislation thereof • Balancing agreement with transmission company • Czech Republic: • The responsibility for imbalance can be contractually transferred to another cleared entity (a user for whom the transmission system operator carries out imbalance evaluation, clearing and settlement under a contract). • Italy: • Applicant must have, in order to book transmission capacity, the relevant purchase, supply or service (for storage) contracts with reference to the point of the network to which he asks for capacity; • have, in the case of requests referred to entry points interconnected with foreign countries, an import contract compatible with the amount and duration of the capacity requested in that point; he must declare the country where the gas is produced, and, if required by the above mentioned regulation, he must be authorized to import natural gas; declare the possession of prerequisite for priority of access according to the criteria defined in the deliberation n. 137/02; • present financial guarantees for the amount of 3% of the annual cost of the capacity booked plus, if no adequate financial rating one third of the annual cost of the same capacity; • in case of direct supply to final customers, possession of the relevant authorization • Poland: • TSO purchases gas for balancing the system from direct suppliers of gas • TSO may select suplpier by tender or auction • In justified cases, the TSO may purchase gas directly form the shippers • Settlement at the end of each gas month (charge=absolute value of imbalance x gas reference price)

15. d) Transit through the national market • Austria: • Regulated by E-Control (Terms & conditions on homepage) • Shippers obliged to use a central trading platform for resellling capacity rights • Bulgaria: • Agreement with national transmission company at regulated tariffs • Czech Republic: • No ERO license is needed. • Gas Transmission Agreement with TSO, Transit Pricelist and Grid Code for Transit are available online • Italy: • same recalled at point 2.c. • In the case the shipper has no delivery point in the Italian market, but only capacity at an entry point and capacity in an exit point interconnected with foreign systems he is generally balanced as long as the volume of gas injected equals the volume of gas withdrawn. • Poland: • Transmission services by SGT EuRoPol SA to PGNiG SA and OOO „Gazprom Export“ through agreement on transmission capacities • Transmission tariff set by ERO • Slovenia: • An access contract for access to transmission network

16. 4) Procedure & Timetable • Austria: • Few weeks (depends on registration with AGCS or A&B) • Bulgaria: • Few weeks to months depending on kind of activity • Czech Republic: • several weeks. Maximal period for issuing of license for gas trading is 30 days • Users shall submit a request for transmission capacity booking for one or more years to the transmission system operator no later than 18 calendar days before the beginning of the first gas day of the calendar month in which gas transmission is to be started • Italy: • import natural gas must be presented to the MSE three month in advance with respect to the start of the importation (one month in the case the authorization is asked for a period shorter than one year); • supply final customers must be presented to the MSE six month in advance with respect to the start of the activity; the applicant is considered authorized if the MSE doesn’t deny within three months from the request. • Transmission capacity at the entry points interconnected with foreign countries is granted for period of a month up to seven thermal years (from 1 October to 30 September), in all the other cases, for the period of one thermal year • Poland: • Standard transmission contract on TSO website (draft contract within 40 working days) • Reply within 15 working days by applicant • Signed contract from TSO within 5 Working days (status as shipper for applicant) • Slovenia: • Acquisition of licence procedure can be reduced to a few days

17. 5) Costs • Austria: • No licence fees, costs for data-services of AGCA or A&B and for legal advice and translations • Bulgaria: • Initial licence fees for the transmission, distribution and transit transmission license of natural gas • Czech Republic: • The fee for issuing the license for trading is 100 000,- CZK (approx. 4000 EUR) • Individual costs for legal advice and translation • Italy: • Tariffs for transmission and storage services are defined and approved by AEEG and published in the TSOs and SSOs websites • For the authorizations is required a modest amount of stamp duties • Poland: • Fees equal to revenues and according to a fee index (attached) • Fees not lower than PLN 200 or higher than PLN 1 000,000 (march 31st) • Slovenia: • Energy Agency of the Republic of Slovenia does not request any licence fees • There is also no other special costs which have to be paid to start importing & supplying natural gas • There are financial instruments for insurance of payment of network charge

18. 6) Additional Information contained • Austria: • Balancing Market in brief, further links to market rules and market participants • Bulgaria: • Balancing Market in brief, further links to market rules and market participants • Czech Republic: • Balancing Market in brief, information on Czech Gas industry, further links to market rules and market participants • Italy: • Balancing Market in brief, further links to market rules and market participants • Poland: • Information on obligatory gas reserves, Balancing Market in brief, further links to market rules and market participants • Slovenia: • links to market participants

19. 3. Updates SSE Regulators Network and recent national developments • Tauern Gas Pipeline applies for exemption • On 23 June 2009, Tauerngasleitung GmbH (TGL) has submitted an exemption application under Section 20a of the Austrian Gas Act (Gaswirtschaftsgesetz) (Section 22 Directive 2003/55/EC) with the regulatory authority, the Energie-Control • Request for a partial exemption (50% of the maximum technical capacity, i.e. 650.000 Nm3/h in both directions) for a period of 25 years • TGL will launch an “Open Season 2009” which will shortly be announced in European trade publications, in international media and on the TGL website www.tauerngasleitung.at. The TGL Open Season 2009 ends with the conclusion of the transportation service contracts. • E-Control has already started discussions • with BNetzA and AEEG to reach • a harmonized decision

20. 3. Updates SSE Regulators Network and recent national developments • MoU between the Slovak Ministry of Economy and the Austrian Ministry of Economy on the cooperation in the energy sector under discussion • Joint promotion of reverse flow ability • Support the ability of short term activation of reverse flows in crisis situations • Endeavours to deliver oil and gas supplies through national networks and storage facilities in crisis situations

21. 4. Update by GIE • Reverse Flow Study • GTE+ Transparency Platform • European Ten Year Network Development Statement

22. 5. Congestion Management TSO survey on nomination and renomination lead times

23. 6. Development of the CEGH GasExchange Presentation by CEGH

24. 7. Update OBAs at Baumgarten

25. 8. Updates IPAs at other IPs

26. Survey on TSO´s coordination activities at IPs - map 27 6 26 7 1 Legend: 4 5 3 25 OBA 8 2 24 9 10 21 23 22 11 20 OBA in preparation 12 17 19 14 15 16 Others 28 29 31 30 13 18

27. 9. Presentation CERA Implementing the Caspian Development Corporation

28. World Forum on Energy Regulation IVAthenaeum InterContinental HotelATHENS GREECE18-21 OCTOBER 2009www.worldforumiv.info Under the official Patronage of the President of Greece and the European Union Commissioner for Energy

29. Planning WFER IV • The WFER IV Programme at a glance • Distinguished line-up of Chairs & Speakers • Registration Information • Sponsorship Opportunities

30. The WFER IV Programme at a glance WFER IV Key Themes TRACK A : Security and reliability of energy supply through competitive energy markets TRACK B : Regulators role for a market response to Climate Change TRACK C : Competitiveness and affordability TRACK D : The independence, powers, responsibilities, best practices and training of regulators

31. The WFER IV Programme at a glance • 4 Speakers, up to 15 min each • 10 min Chair introduction & closing • 5 min Q&As 4 Plenary Sessions (1 per Key Theme) 3 Keynotes 75 min per session • 5 Speakers, 10 min each • 10 min Chair introduction & closing • 30 min Q&As, panel discussion 15 Parallel Sessions 90 min per session

32. The WFER IV Programme at a glance TRACK A : Security and reliability of energy supply through competitive energy markets Plenary 1 1. Market conditions in developed countries that attract infrastructure investments 2. Incentives for infrastructure investments in developing countries Keynote 1 : Gas markets developments and prospects 3. Gas market regulation: the role of LNG Keynote 2: Linking load to market mechanisms: smart grids, advanced metering, real-time pricing 4. Regional market integration: the regulatory cross boarder gap 5. Quality of electricity supply and its regulation

33. The WFER IV Programme at a glance TRACK B : Regulators role for a market response to Climate Change Plenary 2 1. Efficiency of CO2 emission reduction mechanisms 2. Massive RES deployment, market efficiency, system security and reliability 3. The integration of energy efficiency investments and demand-side management in competitive markets 4. Deployment of non carbon or low-carbon emitting technologies and CCS

34. The WFER IV Programme at a glance TRACK C : Competitiveness and affordability Plenary 3 1. Universal service in a climate of increasing energy costs and environmental constraints 2. Regulatory issues of importance to residential and small customers 3. Regulatory issues affecting energy intensive customers

35. WFER IV Programme at a glance TRACK D : The independence, powers, responsibilities, best practices and training of regulators Plenary 4 : The role of regulators in policy making with regard to the public interest 1. Best practices for regulators 2. Cooperation among regulators and regional associations Keynote 3 : Energy and financial markets interdependency issues 3. Training

36. Distinguished Chairs & Speakers • Careful balance by sector and geography to ensure the global character of the forum • regulators, government officials, decision makers • utilities, transmission system operators • financial and consumer rights, other international institutions • academics, consultants, other energy stakeholders • On the Programme: • 22 Chairpersons & 103 Speakers, spanning 5 continents

37. Distinguished Chairs & Speakers • Confirmed speakers include: • EU Energy Commissioner (A. Piebalgs) • EU Commissioner Consumer Affairs (M. Kouneva) • Heads of the energy regulators in • Africa (S. Mokoena) • ARIAE (M.T. Costa Campi) • Australia (J. Tamblyn). • Canada (P. Gurnham), • Europe (Lord Mogg), • Eastern Europe (G. Szorenyi), • MedReg (A. Ortis), • Russia (S. Novikov), • USA (F. Butler), • as well as…….

38. Distinguished Chairs & Speakers from our Region and across the globe • L. Josefsson, CEO, Vattenfall and President, Eurelectric • D. Dobbeni, President, European Transmission System Operators • C. Rytoft Vice President Technology ABB • M. Monti, former EU Competition Commissioner • P. Sakellaris, Vice-President of the European Investment Bank • D. Houssin, IEA Directorate of Energy Markets and Security • O. Isiogu, Chairman, Michigan Public Service Commission, USA • T.W. Boston, President & CEO, PJM Interconnection, USA • N. Otmane, President, CREG, Algeria • P. de Ladoucette, President, CRE, France

39. Distinguished Chairs & Speakers • P. Deo, Chairman, Central Electricity Regulatory Commission of India • F. Sebbowa CEO, Electricity Regulatory Authority, Uganda • A. Dammert, President, Regulatory Authority for Energy Investments of Peru • C. Lewiner, Global Head of Energy, Capgemini • D. Crossley Managing Director Energy Futures, Australia • B. Terzic, Global Regulatory Policy Leader, Energy & Resources Group, Deloitte Services LP • J. T. Kelliher, former chairman FERC • and more than 100 more !

40. Confirmed Chairs and Speakers : analysis by sector

41. Confirmed Chairs and Speakers : analysis by region

42. Venue information • An exhibition space and a number of additional smaller rooms to allow for side events, meetings among participants, speaker preparation etc have been reserved. • Simultaneous interpretation (French, Spanish, Russian, Greek) will be provided during all sessions. • The WFER IV venue is the Athenaeum InterContinental Hotel in Athens, a 5* rated hotel renovated in 2008.

43. Registration Information

44. Registration Information • - Registration Fees for delegates include: Admission to all WFER IV Sessions, Coffee Breaks, Welcome and Farewell Receptions, Lunches, Dinners & Social Event, Abstracts on CD ROM and other WFER IV Material (bag, etc.). • - Registration Fees for Accompanying persons include: Welcome and Farewell Receptions, Dinners and Social Event • - No fees will be charged to speakers/chairpersons

45. Registration Information • More than 450 participants from over 35 countries spanning 6 continents • have already registered. Register before 20th June and save 300 € !!! Visit www.worldforumiv.infofor internet, fax and email registration options

46. Sponsorship Opportunities • Detailed sponsoring pack available on-line • several pre-defined packages • tailor-made options also possible • Emphasis on sponsoring delegates from developing countries, chairs and speakers

47. Why you should attend WFER IV • To learn what policy-makers and regulators are doing • To discuss recent developments and new trends • To share best practices and experiences • To meet fellow energy professionals from around the world • To enjoy the splendours of Greece !

48. Looking forward to seeing you in Athens! WFER IV 18-21 October 2009 www.worldforumiv.info

49. 11. Any other Business Next Meeting: • Date: • RCC/SAP: 15 October 2009 • IG meeting: 16 October 2009 • Venue: Vienna

50. Contact • Konstantin Heiller • Gas Department • Konstantin.heiller@e-control.at • +43 1 24 7 24 810 • +43 664 966 7239 • www.e-control.at