ERGEG Regional Gas Market North-West Workshop on Interconnections & Primary Capacity Market Interconnection Point Oude Statenzijl H-gas Kick-off Meeting BEB, E.ON GT, GTS and WINGAS TRANSPORT Paris,

Paris, 11 May Status quo TSOs answers/proposals Contents

Paris, 11 May Situation Bunde/Oude Statenzijl (H-Gas) Direction Netherlands-Germany GTS Netherlands BEB E.ON GT WINGAS TR. Germany Direction from Netherlands is the historical flow direction The upstream capacity on the Dutch side can be allocated in different ways to the exits Joint scrubber leads to cross- influences of exit capacities to E.ON GT and Wingas Transport

Paris, 11 May Situation Bunde/Oude Statenzijl (H-Gas) Direction Germany - Netherlands GTS Netherlands BEB E.ON GT WINGAS TR. Germany Demand of capacity in the East- West direction developed long after demand for capacities in the West-East direction Expansion projects were initiated by TSOs Because of the specific physical grid situations, capacity increases were accomplished earlier on the German side

Paris, 11 May Status quo: Answers 5.1 and 5.2 1) Maximum implementation lead time: 10 days 2) More than 3 months and less one year: 3 months 3) New cooperation agreement IssueGTSBEBE.ON GT WINGAS TRANSPORT Applied booking procedure (5.1) ProcedureOnline Booking Legally required?Yes Timing of booking (5.2) Yearly contractsNo restriction 1) Monthly contractsNo restriction 1) Earliest 20 days 1) 2) / Resp. earliest 3 months 3) Daily contractsEarliest 3 months 1) Earliest 20 days 1) Inline with Dutch / German network code? Yes

Paris, 11 May IssueGTSBEBE.ON GT WINGAS TRANSPORT Can shippers book Entry and Exit capacities to each TSO separately? (5.3) Shippers book Entry and Exit capacities separately to each TSO Yes Are booking procedures coordinated between neighbouring TSO, so that shippers are in contact with only one party? (5.4) Shippers can book Entry and Exit capacities from only one TSO No Shippers can book Entry and Exit capacities via a third party (e.g. agent, train ticket) NoYes Status quo: Answers 5.3 and 5.4

Paris, 11 May IssueGTSBEBE.ON GT WINGAS TRANSPORT What is/are the applied capacity allocation mechanism(s) for existing capacities? (6.2.2) First-Come-First- Served… Yes 1) Legally required?Yes Is/Are allocation mechanism(s) applied for existing capacity coordinated between adjacent TSOs? (6.2.3) No Status quo: Answers 6.2 1) First committed first served is offered in combination with online booking

Paris, 11 May IssueGTSBEBE.ON GT WINGAS TRANSPORT Are there planned increases in capacities? Planned capacity increases (6.3.1) YesNoYesNo New capacity already allocated (6.3.2) Yes for the first years ---Yes--- Status quo: Answers 6.3

Paris, 11 May Status quo TSOs answers/proposals Contents

Paris, 11 May Implementation Goal 1: BNetzA / DTe Proposals Submit missing data on technical capacity, subscription, flows for (2004), 2005, 2006 Data ProvidedGTSBEBE.ON GT WINGAS TRANSPORT Capacities in 2005 (4.3)Yes 1) Yes Yes 1) Utilization rates in 2005 (6.1) Yes 1) Yes 2) Yes 3) Yes 1) Rates of subscription in 2007 (7.1) Yes 1) YesYes 4) Yes UIOLI (7.4.2)Yes Contractual congestion in 2005 and in 2006 (12.1) Yes 1) Yes 1)Except for confidential data in some months 2)Data only available from 10/2005 3)Percentages refer to net flow 4)Except for months Oct-Dec 2007 because of change of calculation model

Paris, 11 May Implementation Goal 1: BNetzA / DTe Proposals Explain low utilisation and temporal over-utilisation Interpretion of question was different between TSOs, e.g. some took net flow and some took contractual allocated flow High utilisation rates in BEB answer because of netting effects and usage of allocated capacities Wingas Transport utilisation rates are within range Low utilisation rates from E.ON GT grid to GTS grid because of lower GTS entry capacity compared to E.ON GT exit capacity Temporarily higher gas flows possible on operational level dependend on actual flow situation in the GTS grid

Paris, 11 May Implementation Goal 1: BNetzA / DTe Proposals Identify possible ways to maximise capacity UIOLI mechanisms are in place Further facilitation of secondary market via day ahead capacity platform under development Operators are open for discussion of new proposals

Paris, 11 May Implementation Goal 1: BNetzA / DTe Proposals Strictly enforce UIOLI Buy-back capacities Detailed legal requirements on long term UIOLI in Germany and in the Netherlands Such UIOLI mechanisms have been implemented in the respective network codes Buy-back mechanisms better to be solved via secondary capacity market

Paris, 11 May Implementation Goal 1: BNetzA / DTe Proposals Ensure that capacity trading platforms are running and interlinked Capacity trading platforms are running in the Netherlands and in Germany Relation to day ahead capacity pilot ?

Paris, 11 May Implementation Goal 2: BNetzA / DTe Proposals Comply with all transparency requirements TSOs would like to be informed about any perceived non-compliance with existing transparency obligations In case of non-compliance with existing transparency obligations, TSOs will endeavour to comply as soon as possible Additional transparency requirements should be discussed and if agreed upon aligned with other work streams, i.e. in the day ahead capacity pilot

Paris, 11 May Implementation Goal 3: BNetzA / DTe Proposals Planned capacity increase E.ON GT exit capacity increase to 1.5 Mio m³/h in 2007 GTS entry capacity increase by 3 Mio m³/h in 2010 CAM for new capacities The capacity allocation methods currently applied by TSOs are in line with the applicable national legal obligations Possible change requirements to be discussed

Paris, 11 May Implementation Goal 4: BNetzA / DTe Proposals Identify scope and limits for establishing a harmonised/bundled framework GTE is currently conducting a study on harmonisation of capacity products, input from regional market is welcome Bundled entry and exit capacities will be treated in day ahead capacity pilot

Paris, 11 May Implementation Goal 4: BNetzA / DTe Proposals Coordinate with the goal of facilitating booking procedures, especially with respect to spot markets Learn from coordinated day ahead capacity pilot ?