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France-UK-Ireland Region 1 February 2007

Written Consultation – Overview of Responses Shaun Kent – Head of European Electricity Policy, Ofgem. France-UK-Ireland Region 1 February 2007. Responses. 13 responses received : 10 representing market participants / suppliers / generators / traders 1 from Power Exchange - APX

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France-UK-Ireland Region 1 February 2007

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  1. Written Consultation – Overview of Responses Shaun Kent – Head of European Electricity Policy, Ofgem France-UK-Ireland Region 1 February 2007

  2. Responses • 13 responses received : • 10 representing market participants / suppliers / generators / traders • 1 from Power Exchange - APX • 1 consumer body – energywatch • 1 Interconnector body – Moyle • Broad support for overall approach – e.g. focus on market interface • Some calls for expediting process e.g. direct Project Management • All available ERGEG website

  3. Key messages – Congestion Management • Support implementation of CM Guidelines • Intra day markets key – must be addressed • Broadly support UIOLI / UIOSI – but should be facilitated by better secondary markets • Broadly favour Financially firm access • Some calls for further harmonization of Gate Closure etc. • Some calls for revision to IFA auction arrangements • ‘Inefficiencies’ on IFA explained by timing mismatches / difficulty of intra day trade. Further work.

  4. Key messages – Balancing • Important issue but intraday markets equal priority / necessary prerequisite • Alignment of cross border balancing arrangements desirable • Greater transparency called for e.g. on inter-TSO balancing trades • Broad support for ‘Model 2’ as pragmatic approach - moving towards model 1 in the longer term • Imbalance pricing – recognize distortions of different imbalance price rules – but risks can be managed

  5. Key messages – Transparency • Broad agreement with ‘gap’ analysis • Improvements sought in e.g. : • Transmission outage data • Information on Moyle • Forecasts of interconnector capacity closer to real time • Inter TSO trades for balancing • Generation data in Ireland and France • Favour information / data to be placed on websites in real time or as close to real time as possible

  6. Key messages – Transmission Tariffs • Recognize / broadly agree that distortions exist • Generally favour further / enhanced analysis, e.g. • BSUoS • Losses • etc. • Some calls for harmonisation of G and D split and/or common methodology • Some favoured TNUoS charges should be removed for interconnector users and GB should join ITC mechanism

  7. Thank You Shaun Kent – Head of European Electricity Policy, Ofgem

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