TSO Transparency project Gas Regional Initiative North West Ofgem, Great Britain Regional Co-ordination Committee 18th February 2011

2 GRI NW TSO Transparency project proposal RCC, The Hague, 18 th February 2011 Purpose Transparency is a critical element in ensuring an effective functioning internal European market. Asymmetric information leads to distortions in the market and can be a barrier to entry. Gas Regulation No 715/2009, effective from 3 rd March 2011 includes a number of enhanced transparency requirements under Article 18 and under amended Chapter 3 of Annex 1 of the Gas regulation

3 GRI NW TSO Transparency project proposal RCC, The Hague, 18 th February 2011 Objectives The proposed objectives of this project: 1.Monitor compliance of TSOs against the requirements outlined under Article 18 and amended Chapter 3 of Annex 1 of Gas Regulation No 715/ Assess the quality of the data published.

4 GRI NW TSO Transparency project proposal RCC, The Hague, 18 th February 2011 Background GRI NW has been one of the leading institutions over the past 4 years driving significant improvements in European gas market transparency. Market participants provided positive feedback on the improved information transparency through GRI. Important to ensure enhanced requirements under 3 rd package are implemented correctly. Lessons learnt from these previous transparency projects: agree interpretation of what is required under the Gas Regulation. project requires all NRAs to participate and all TSOs cooperation.

5 GRI NW TSO Transparency project proposal RCC, The Hague, 18 th February 2011 The proposal

6 GRI NW TSO Transparency project proposal RCC, The Hague, 18 th February 2011 Next steps and questions Do you agree with the proposed project? Any comments on the high level project plan? GRI NW members – volunteers to join project team?