8 February Study Co-Ordination on Day Ahead Capacity in Bunde/Oude Statenzijl and Ellund EC-Operators of Implementation Group ERGEG Regional Gas Market North / North-West Key Operator Contacts “Interconnections, Primary and Secondary Market” Volker Schippers, E.ON GT Anke Alvermann, BEB

8 February Background Current Situation Alternatives Proposal Way forward Contents

8 February EFET perceives that –market structures and limited availability of transport capacity between markets have a significant impact on the traded wholesale markets (hubs) and proposed that –TSOs should obtain or reserve capacity for day ahead capacity auctions –Shippers should be requested to resell unused capacity First N/NW Stakeholder Group Meeting (slide I)

8 February Auction Process proposed by EFET –until 09:00Shippers place available capacity in the auction –until 09:30TSO(s) publish available capacity and its nature (firm / interruptible) –09:30 to 10:00Auction –before 10:15TSO(s) communicates results –Envisaged Start1 April 2007 First N/NW Stakeholder Group Meeting (slide II)

8 February North /North-West operators develop a study on Co- Ordination on Day Ahead Capacity Interconnection Points Bunde – Oude Statenzijl (H-gas) Ellund Operators work out study until end of December 2006 Task defined on second N/NW IG

8 February Background Current Situation Alternatives Proposal Way forward Contents

8 February Bunde / Oude Statenzijl (H-gas) –BEB –E.ON Gastransport –Gastransportservices –Wingas Transport Ellund –BEB –Dong Energy Pipeline –E.ON Gastransport –Energinet.dk TSOs at the Interconnection Points

8 February GTSBEBE.ON GTWingas Tr. Offer daily capacity (firm and interruptible)  Offer capacity on one side of the border  Offer on-line capacity booking  Maximum implementation lead time 10 days Bulletin board for secondary capacity  Re-nomination lead time 2 hours Main Current Conditions: Bunde / Oude Statenzijl (H-gas)

8 February Energinet.dkBEBDEPE.ON GT Offer daily capacity (firm and interruptible)  Offer capacity on one side of the border  Offer on-line capacity booking Scheduled for September 2007  Scheduled for April 2007  Maximum implementation lead time 10 days Bulletin board for secondary capacity  Scheduled for Summer 2007  Re-nomination lead time 2 hours Main Current Conditions: Ellund

8 February Background Current Situation Alternatives Proposal Way forward Contents

8 February Short Term Capacities Product Features Allocation of RevenuesOrganisation Allocation of Capacities

8 February Interconnection Points –Bunde / Oude Statenzijl (H-gas) –Ellund Entry – Exit Capacity –Separate entry and separate exit capacity –Combined entry-exit capacity Type –Firm (primary from TSO) –Firm (secondary from shipper) –Interruptible (primary from TSO) –Interruptible (secondary from shipper) Duration –Daily Lead time –Day-ahead Alternative Product Features Product Features

8 February Who –TSOs Jointly Bilaterally Locationally –Joint Venture –Energy Exchange Platform –Internet Website Alternative Forms of Organisation Organisation

8 February Allocation of Capacities –Auction –Pro-Rata –FCFS Allocation of Revenues –Depending on the products and specific national / European rules remaining revenues may be reimbursed to original capacity holder (shippers or TSO) shared between shippers and TSOs –Platform operator receives (fixed) handling fee Alternatives of Allocation of Capacities and Revenues Allocation of Capacities Allocation of Revenues

8 February Background Current Situation Alternatives Proposal Way forward Contents

8 February Proposal Product features –Location: Bunde / Oude Statenzijl (H-gas) and Ellund –Combined entry and exit capacities –Interruptible capacities offered by TSOs –Duration / Lead time: day ahead daily capacity Organisation –TSOs Allocation of Capacities –Auction Allocation of Revenues –TSOs receive the revenues

8 February Background Current Situation Alternatives Proposal Way forward Contents

8 February Way Forward 9 February 2007 –Discussion on North / North-West stakeholder workshop in Bonn, Germany After the Workshop (in case of agreed-upon solution) –Check of national implementability (national rules / market) –Development of specification and implementation plan –Definition of starting date