1. Capacity Workshop Introduction Gas Regional Initiative – North West Region London 14 November 2008 Chair: Dominique JAMME Director of Gas Infrastructure and Networks Commission de Régulation de l’Energie (CRE)

2. 2 Capacity Work Stream SG meeting, London, 14 November 2008 Agenda 1.Capacity situation in the NW region 2.Overview of the capacity work stream and project plans 3.Organization of the capacity session

3. 3 Capacity Work Stream SG meeting, London, 14 November 2008 Capacity situation in the NW region  Easy access to capacity for transport across the region seen as a priority area for action in the GRI NW  Substantial challenges confirmed by the Roadmap (April 2008)  “Capacity should be easily available and tradable”  “Capacity should be fungible, compatible with trade in the commodity and consistent across the region”  Since the Roadmap was presented in Amsterdam, progress has been made setting up the priority Projects for capacity issue  7 projects plans tackling various aspects of capacity issue in a coherent approach  But congestion situation still existing on the majority of IPs in the region

4. 4 Capacity Work Stream SG meeting, London, 14 November 2008 Capacity situation in the NW region  Percentage of firm available capacity compared to the total of technical capacity  Selected interconnection points (H gas): Blaregnies / Taisnières Eynatten Medelsheim / Obergailbach Bunde Oude / Statenzijl Preliminary remarks on data: Time horizon: 2009 and 2010 (until may 2010) i.e. 18 months from Nov. 2008 (in accordance with Reg. n° 1775/2005 on publication of information at relevant points) Calculation based on TSOs’ data available for consultation on GTE+ Transparency Platform (www.gas-roads.eu). These data are also available on TSOs’ websites.www.gas-roads.eu On Fluxys side: conditional capacity considered as firm capacity On GTS side, some information are mentioned as confidential (C) ! Blaregnies / Taisnières Medelsheim / Obergailbach Eynatten BOS

5. 5 Capacity Work Stream SG meeting, London, 14 November 2008 Capacity situation in the NW region Percentage of firm available capacity compared to the total of technical capacity C = confidential data

6. 6 Capacity Work Stream SG meeting, London, 14 November 2008 Agenda 1. Capacity situation in the NW region 2.Overview of the capacity workstream and project plans 3. Organization of the capacity session

7. 7 Capacity Work Stream SG meeting, London, 14 November 2008 Overview of the capacity workstream OPTIMISING USE OF CAPACITY and CREATING CAPACITY Facilitating access to capacity = Project plan on Bundled Products = Project plan on Capacity Service Evolution Increasing available firm capacity = Project plan on BOS Maximising use of capacity = Project plan on Short term capacity = Project plan on Day-ahead platform at BOS = Project plan on Fluxys interruptible services Coordination of the investment project = Project plan on Open Season Pilot project plan on the IPs of Blaregnies / Taisnières & Medelsheim / Obergailbach

8. 8 Capacity Work Stream SG meeting, London, 14 November 2008 Overview of the project plans Project plan on Fluxys interruptible services Objective Improve the functioning of Belgian transit system Scope Examination of Fluxys’ new interruptible services (transit and existing entry capacity for domestic transport; overbooking situation and buy-back measures) Deliverable  Description of services (Q4-08)  Assessing market value (Q1-09) Next step Identification and analysis of “other initiatives”

9. 9 Capacity Work Stream SG meeting, London, 14 November 2008 Overview of the project plans Project plan on pilot IPs of B / T and M / O Objective: improve functioning and capacity access at two pilot interconnection points Possibility to get access to equal capacity on each side of the IPs Improvement of the interoperability of adjacent networks and improvement of the gas transit Context First set of concrete proposals from TSOs in Feb. 08 on capacity products and service offered, capacity increase (O.S.), procedures (booking notice…) and transparency (publication of data…) Deliverable Follow-up of implementation of commitments (Q4-08) Next step Further improvements and roll-out to others IPs (Q2-09)

10. 10 Capacity Work Stream SG meeting, London, 14 November 2008 Overview of the project plans Project plan at BOS (1) “DACA” Objective Better use of existing capacity, improve liquidity and introduce market based trading of capacity (auctioning)  Sale of primary interruptible capacity + secondary firm capacity  Sale via online trading platforms (Trac-X and APX) Status of implementation Pilot started on May 08. but success of the project highly conditioned to the liquidity of the market (few transactions took place) Some arrangements to be introduced on Jan. 09. to improve secondary trading Next step Initial evaluation of modified arrangements before going further. Possible request to extend the duration of the pilot

11. 11 Capacity Work Stream SG meeting, London, 14 November 2008 Overview of the project plans Project plan at BOS (2) “Flow Commitments” Objective Increase available firm capacity for the short term at Bunde/Oude Statenzjil through implementation of flow commitments (FCs) Key milestones Develop concept of FC Examination of FC impact on (commodity) markets in NL and D and relation of FC to swaps Evaluate regulatory framework and legal feasibility Next step Publication of a working paper on flow commitment concept (Q4-08) and solve resource issue with TSOs and stakeholders

12. 12 Capacity Work Stream SG meeting, London, 14 November 2008 Agenda 1. Capacity situation in the NW region 2.Overview of the capacity workstream and project plans 3. Organization of the capacity session

13. 13 Capacity Work Stream SG meeting, London, 14 November 2008 Organization of capacity session  Four projects selected for immediate attention OPTIMISING THE USE OF EXISTING CAPACITY Short term capacity project plan Examination of how unused capacity could be released day-ahead and investigating into whether renomination rules have to be reformed Bundled products Overview of different platforms offering bundled products and analysis of how combined day-ahead primary capacity can be made available on the market Capacity service evolution Increase the compatibility of capacity services and marketing procedures CREATING CAPACITY Coordination of open season Addressing difficulties encountered in coordination of O. S. ; defining effective and operational coordinated O.S. mechanisms  Interactive debate on few concrete questions to get tangible propositions

14. 14 Capacity Work Stream SG meeting, London, 14 November 2008 Organization of capacity session TIMEAGENDA TOPICSCONTRIBUTOR 10:501. Opening and welcome 11:00 2. Overview and update on capacity in the North West region - Inventory of capacity situation and progress - Overview of the capacity work stream Dominique Jamme 11:20 3. Optimising the use of existing capacity (presentation and debate) - Short term capacity - Bundled products and capacity service evolution BNetzA & Ontras 12:30Lunch- 14:00 4. Creating capacities: Open season coordination (presentation and debate) CRE 14:455. Conclusions Led by Dominique Jamme 15:00Workshop ends-  Timing

15. 15 Capacity Work Stream SG meeting, London, 14 November 2008 Thank you for your attention! * * * dominique.jamme@cre.fr +33 1 44 50 41 43 www.cre.fr