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

2 France-UK-Ireland REM – Consultation Responses Overview 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 France-UK-Ireland REM – Consultation Responses Overview 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 France-UK-Ireland REM – Consultation Responses Overview 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 France-UK-Ireland REM – Consultation Responses Overview 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 France-UK-Ireland REM – Consultation Responses Overview 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 France-UK-Ireland REM – Consultation Responses Overview Thank You Shaun Kent – Head of European Electricity Policy, Ofgem