1. Association of Issuing Bodies (AIB) Christof Timpe, Dietmar Preinstorfer AIB Task Force IRM RECS Open Seminar Verona, 10 March 2006 International Residual Mix (IRM) Support for Electricity Disclosure

2. International Residual Mix 2 ELECTRICITY DISCLOSURE  According to Article 3/6 of the Internal Electricity Market Directive (2003/54/EC) suppliers must specify their overall fuel mix over the preceding year, and related environmental information.  The information provided by the suppliers must be reliable: - information must be accurate and - double counting must be avoided  Suppliers may use information about the source of electricity by (explicit) tracking mechanisms for production attributes including: - certificates - contract tracking of single fuel sources - contract tracking of a production mix

3. International Residual Mix 3 AIB SERVICES FOR DISCLOSURE (1)  AIB promotes a Europe-wide standard for certificates (European Energy Certificate System, EECS), which includes  RECS Certificates (in place since 2001)  RES-E Guarantees of Origin (in place since 2004)  CHP Guarantees of Origin -> planned (mid 2006)  Generic disclosure certificates for all types of fuel sources -> planned (mid 2006)  AIB operates its services on the basis of electronic databases interconnected with database interfaces

4. International Residual Mix 4 INTERNATIONAL RESIDUAL MIX – The problem  Where (explicit) tracking of information is not possible or is not successful, national disclosure laws will use statistical data as a default value (e.g. Austria and Germany use the mix from UCTE statistics).  The available statistical data is pure production data, which has not been adjusted to reflect electricity already accounted for by (explicit) tracking mechanisms, such as certificates issued by AIB.  Therefore, the combination of (explicit) tracking mechanisms with the use of production statistics for purposes of disclosure leads to double counting.

5. International Residual Mix 5 INTERNATIONAL RESIDUAL MIX – The solution  The International Residual Mix (IRM) is proposed as an alternative to production statistics in the context of disclosure. The AIB has initiated a project to calculate the IRM as follows: European production fuel-mix (e.g. from UCTE statistics) – “Reliably Tracked Production Attributes” (RTPA) = IRM  Reliably tracked production attributes (RTPA) can include:  Certificates issued by AIB  Supported electricity (RES-E and CHP), if the support scheme allocates production to consumers, e.g. on a pro rata basis  Any other electricity, for which reliable (explicit) tracking mechanisms have been used

6. International Residual Mix 6 INTERNATIONAL RESIDUAL MIX – Process  The IRM data will be published and should be used by suppliers as a default value for electricity of “unknown origin”. The IRM will thus correct the double counting error caused by the use of production statistics for disclosure.  AIB has developed the IRM proposal and is currently discussing it with UCTE, Eurelectric, EFET, RECS International and other stakeholders.  AIB is inviting interested partners to collaborate in the IRM project.  AIB suggests a pragmatic approach: In the beginning, only such RTPA will be taken into account, for which data is easily available. This will improve the quality of data used for disclosure (but not yet make it perfect).  The IRM will be improved continuously by adding more RTPA data.

7. International Residual Mix 7 INTERNATIONAL RESIDUAL MIX – An example Two country cases from the first exercise to determine an IRM (2004 figures, data not fully consistent)

8. International Residual Mix 8 AIB SERVICES FOR DISCLOSURE (2)  AIB promotes a Europe-wide standard for certificates (European Energy Certificate System, EECS), which includes  RECS Certificates (in place since 2001)  RES-E Guarantees of Origin (in place since 2004)  CHP Guarantees of Origin -> planned (mid 2006)  Generic disclosure certificates for all types of fuel sources -> planned (mid 2006)  AIB operates its services on the basis of electronic databases interconnected with database interfaces  AIB will supplement these tracking options with a default set of data (IRM), which could (and should) be used for electricity, for which no certificates or other information of origin is available  This will enable market participants to deliver comprehensive disclosure information, while avoiding multiple counting

9. International Residual Mix 9 Thank you for your attention ! ASSOCIATION OF ISSUING BODIES Registered Office: Verenigingsstraat 39, 1000 Brussel, Belgium Administrative Offices: 12 The Broadway, Amersham, Bucks HP7 0HP, United Kingdom Tel : +44 (0)1494 432323 Fax : +44 (0)1494 434888 Email: info@aib-net.org Website: http://www.aib-net.org