2nd IMPLEMENTATION GROUP MEETING. Lisbon, 24th January 2008 Conclusions from the 3rd technical RCC

2 ERI - SW REM 2nd Implementation Group meeting. Lisbon, 24th January 2008 The 3rd technical RCC meeting for the SW electricity REM took place in Madrid on 16 November  The RCC fully supports the effort by Mr. Mario Monti as regards the progress in the FR-SP interconnection, and is ready to help him if required to do so.  Good momentum in the region to achieve new IFE rules that reflect the quick-win improvements of deliverable III.2.a.  The recent unavailability of capacity between Spain and Portugal highlighted the necessity to harmonize capacity calculation as well as the “force majeure” concept within the region.  The RCC demands in the ERI TF for coordination among all the market coupling processes that are taking place in several European countries. Conclusions from the 3rd tech RCC meeting

3 ERI - SW REM 2nd Implementation Group meeting. Lisbon, 24th January 2008 Deliverable III.2.a: “Quick-win” improvements in the long and medium term explicit auction mechanisms.  The RCC welcomes the proposal by TSOs of new text for articles 2.03 and 2.06 of the IFE rules by REE and RTE. However non-continuous products will be accepted if TSOs define in the rules which days and periods exactly the interconnection will not be available or the capacity will be reduced (as it is done in France-Italy rules for example).  Compensation scheme at full market price differential in case of curtailments and cancellation of (day ahead and intraday) auction: While the RCC will encourage all parties to implement market coupling as soon as possible, it considers that the compensation scheme at full market price differential will be beneficial for the development of cross-border trade even within an explicit auction framework and recommends its implementation on the French- Spanish border as soon as possible. Conclusions from the 3rd tech RCC meeting

4 ERI - SW REM 2nd Implementation Group meeting. Lisbon, 24th January 2008 Deliverable III.2.b: “Longer-term” improvements in the long and medium term explicit auction mechanisms.  Market coupling between MIBEL and the current TRILATERAL (and forthcoming Central West region market coupling) is key for the region. The regulators had a first discussion on different barriers to couple both markets.  These issues will be studied in the ad hoc task force created in the light of the 1st SG meeting for dealing with longer-term improvements. Conclusions from the 3rd tech RCC meeting

5 ERI - SW REM 2nd Implementation Group meeting. Lisbon, 24th January 2008 Conclusions of the public consultation of the additional deliverable “analysis of the administrative procedures for the changing of the legislation in force in each country”  The RCC is producing the conclusions paper of the public consultation. Priority II. Transparency  The RCC is producing a “First Paper on main findings from replies to the questionnaire”. An effort should be made to harmonize definitions and agree on a common understanding on the points assessed. Conclusions from the 3rd tech RCC meeting