1. March 12, 2003REM-1101-47RP 1 DONORS`MEETING MARKET FACILITATION GROUP WORK PROGRAM Rome March 24, 2003

2. March 12, 2003REM-1101-47RP 2 MARKET FACILITATION GROUP REGIONAL COORDINATOR SEETEC ACTIVITY REM1101 Market models and Linkages with Market Rules, Grid Code and Electricity Pricing Generation & Transmission Systems Planning from a Traditional to Market Based Perspective (Skopje May 2003) Market-based Approach to Congestion Mngt and Linkages to Market Rules & Grid Code (Bucharest Jul 2003) Market Simulation Exercise (Ljubljana Sept2003) Study Tour of the Regional Electricity Market in the Nordic Countries (Scandinavia Nov 2003) Renewed Discussions on REM Market Design Issues (Montenegro Dec 2003) (Sofia Mar 2003) DONE

3. March 12, 2003REM-1101-47RP 3 Objectives of the 1 st MFG Workshop  To Present in details the Balancing Market model and the advantages of a liquid,transparent day ahead market  To present the European CBT methodology and its application to Southeast Europe  To present detailed market design and pricing principles  To discuss the countries reform process and their vision of the SEE regional market

4. March 12, 2003REM-1101-47RP 4 Balancing market model  Overall Process: from weeks ahead to post- dispatch: Nominations (BRPs), Notifications, etc.  Bilateral contracting: Process and type of contracts  How a balancing market works  The two sides of a balancing market & imbalance prices  Regulated bids&offers and simplified balancing arrangements  Usefulness of a day ahead market