1. 6th Stakeholder Group meeting Stockholm – 26 November 2009 Gas Regional Initiative Region North-West Secondary Markets Betsy Annen, CRE Bernhard Schaefer, E.ON Ruhrgas

2. 2 6th Stakeholder Group meeting Stockholm – 26 November 2009 Introduction & status quo

3. 3 6th Stakeholder Group meeting Stockholm – 26 November 2009 Purpose of secondary markets ● Primary transport capacity is mainly booked long-term - but often underused  Shippers should offer unused capacity back to the market to the largest extent possible

4. 4 6th Stakeholder Group meeting Stockholm – 26 November 2009 Relevance of secondary markets ● Flexible secondary trading is essential for optimizing the usage of primary capacity … ● … it thus helps improving shippers’ access to capacity  In particular secondary trading of cross-border capacities supports regional integration

5. 5 6th Stakeholder Group meeting Stockholm – 26 November 2009 The start: „day-ahead capacity pilot“ Bunde / Oude Statenzijl (NL/D) Ellund (DK/D) ● Project initially suggested by EFET ● Aim: firm day-ahead capacity marketing (auctions) to improve capacity situation ● Pilot at cross-border points BOS and Ellund ● Voluntary, intensive work of TSOs and platforms (trac-x, APX) ● Participation of regulators (NL, D, DK) and EFET  Significant achievements already in the first phase of the project

6. 6 6th Stakeholder Group meeting Stockholm – 26 November 2009 Day-ahead pilot focused on ”capacity transfer“

7. 7 6th Stakeholder Group meeting Stockholm – 26 November 2009 Secondary trading platforms are little used ● (Day-ahead) trading implemented at a number of interconnection points ● Currently 3 platforms offer secondary capacity trading in the North-West region The problem is: ● Very few transactions on these platforms (in spite of their sophisticated design) ● Hence the liquidity of the secondary market is still very low and has not improved the access to capacity

8. 8 6th Stakeholder Group meeting Stockholm – 26 November 2009 Now the GRI project has been extended  Regional project now covers secondary marketing in general

9. 9 6th Stakeholder Group meeting Stockholm – 26 November 2009 Discussion

10. 10 6th Stakeholder Group meeting Stockholm – 26 November 2009 What do YOU think? ● Does the product range need improvement? ● Is the choice of IPs wrong? ● Are processes too complicated? ● Does day-ahead trading mean too much effort? ● Is coordination with spot markets not optimal? ● …

11. 11 6th Stakeholder Group meeting Stockholm – 26 November 2009 Way forward

12. 12 6th Stakeholder Group meeting Stockholm – 26 November 2009 Way forward ● We aim at improving situation for network users ● Need to first understand the barriers to trade!  Detailed questionnaire to come ● address active and “inactive” shippers ● supplemented by analysis of trading data ● confidentiality ● Results will serve as a basis to ● further improve products and/or processes? ● include additional booking points? ● standardize platforms? ● …  Your input is essential to ensure that problems are solved and changes are market driven!