GTE+ progress towards ENTSOG Jacques Laurelut GTE President & GTE+ Transition Manager GIE Annual Conference 2008, Bucharest

Third energy package – European Network of Transmission System Operators for Gas ENTSOG will develop 1.annual work programme 2.network codes 3.non-binding 10- year network development plan 4.annual winter outlooks 5.annual report Consultation during development establishment of the annual work programme when changes are proposed providing input for the10 year network development plan Output 1.Network Codes foundation for the market 2.Network Development Plan inform the market  TSO role = to facilitate market by providing capacity, services and information  robust, responsive and transparent consultation

TSOs’ and GTE involvement TSOs: a unique position on the market, as they are the only ones that -can ensure secure, reliable and efficient operation of the transmission networks -can bridge the gap between physical and contractual aspects of gas transmission and provide a suitable market place for interested stakeholders (‘commodity-making principle‘) -are not a market-player TSOs and GTE have to/are willing to contribute to build appropriate future European framework and processes, in close cooperation with the Commission, regulators and stakeholders Commodity-making principle: - within-day trade that applies to the whole day - possibility to trade gas between L-gas and H-gas market areas 3 23 rd October 2008

Organisational development GTEGTE+ENTSOG ‘Yesterday’: since 2003 ‘Today’: as per February 2008 ‘Next week’: implementing 3 rd package, 2011? Interim upgraded organisation: 3 full time senior advisors GTE president/GTE+ transition manager Liaison with ERGEG and other stakeholders  Work has started! Agenda 2009 Establish new organisation + new way of working Deliver projects to facilitate market  Prove ENTSOG concept works! GTE+ and TSO members’ commitment

GTE+ Approach Same GTE+ resource level to deliver 2009 Work Programme Later transitional resources to be decided summer 2009 “Differential” approach to reflect major environment differences GTE+ involvement in GRI 23 rd October 2008GIE Annual Conference 2008, Bucharest5

GTE+ First Annual Work Programme rd October 2008GIE Annual Conference 2008, Bucharest 6 Organisational Development Transparency Platform Ten Year Network Development Plan Winter Outlook Capacity Co-ordination Interoperability Feedback stakeholders on AWP Consultation welcomed - Stakeholders want to be involved - Priorities broadly correct (some desire to look at “balancing”) - Minor refinements to Project Plans desirable  Work on AWP 2010: consultation May-June 2009 Statutes Annual Work Programmes (AWPs)

ENTSOG Statutes Work on main principles and processes to ensure the proper implementation of the Third Energy Package Current work on main principles and processes Priority is on the development of the consultation and development processes involving all stakeholders and associations These processes will be critical to the proper functioning of ENTSOG and will constitute key elements of the Statutes and Rules of Procedures Development of ENTSOG Statutes and rules of procedures October 2009 Consultation Rules of procedures February-March 2009 Statutes Madrid Forum November rd October

Define Code Project Plan Code proposal development processes Code finalisation process Commission & Agency set priorities Network Code delivery Commission & Agency approval processes time 8 Delivering Network Codes

9 Thank you Please track our progress at: GIE Annual Conference 2008, Bucharest23 rd October 2008

*Stakeholders Joint Working Sessions To meet and discuss with stakeholders Be responsive, having due regard to opinions Justifying acceptance or rejection ENTSOG chaired time Stakeholders’Joint Working Sessions* EFET IFIEC Others OGP Eurogas ENTSOG Endorsement Primary Code Consultation To Code decision making process Project Plan including launch documentation Inputs, analysis & proposals First Draft Code Code Proposal Development Process GIE Annual Conference 2008, Bucharest23 rd October 2008

Process consultation responses Proposal refinement Stakeholder Opinion/Support Final ENTSOG Proposal To ACER Stakeholder interaction & clarification Stakeholder input comprises opportunity for all stakeholders to deliver final opinion associations to support or reject (with justification) ENTSOG’s explanations on the reasons of rejection/acceptance Consultation response inputs from EFET, IFIEC, OGP, Eurogas, Other associations and individual market players time GIE Annual Conference 2008, Bucharest23 rd October 2008 Code finalisation process