1. IFIEC’s view on Transparency in Electricity Markets Christoph Bier ERGEG Public Hearing on Guidelines of Good Practice on Transparency and Information Management Brussels, 6 July 2006 IFIEC EUROPE – International Federation of Industrial Energy Consumers Slide 1

2. IFIEC EUROPE – International Federation of Industrial Energy Consumers Transparency – why? Lack of information: Little trust in functioning of markets  acts as entry barrier  reduces liquidity Uncertainty  risk premiums  higher prices Asymmetric information: Unfair competitive advantages  reduces competition  level playing field needed Transparency needed … … to understand the markets (wholesale, balancing) … to act successfully (e.g. implications of load shedding)

3. IFIEC EUROPE – International Federation of Industrial Energy Consumers Transparency – which data?  e.g. … Generation: generation capacity – installed and available (d-1) planned unavailabilities renewable generation (wind!) – forecast (d-1) and actual production ad-hoc information on unplanned outages actual generation (~real time) Grid: Cross border capacities  transparent calculation of capacity made available to the market  forecasted (multi-annual, monthly, weekly, daily) and used capacity (~real time) planned maintenance congestion income (and its use) load per DSO-/TSO-area (system time unit, ~real time)

4. IFIEC EUROPE – International Federation of Industrial Energy Consumers Transparency – which data?  e.g. … Balancing markets: Control area imbalance (~real time) Imbalance prices (Successful) bids energy losses – volumes and prices Wholesale markets: Aggregated supply and demand curves (d+1) Additionally needed: proper surveillance and avoidance of insider trading all types of balancing energy - primary - secondary - tertiary - other (  wind)

5. IFIEC EUROPE – International Federation of Industrial Energy Consumers Transparency – how? Completeness  fragmentary market data cannot help EU-wide Harmonization  integrating markets Obligation  voluntary agreements?  incomplete data (e.g. EEX) Control / Sanctions ?  Regulatory authorities User-friendly  internet-based, one website, common data format quick (liberalization started in 1996…) Timetable: Requirements: