1. Presentation of the ERGEG Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid, 20th July 2007

2. 2 ERI – SW Electricity REM 1st Implentation Group Meeting. Madrid, 20th July 2007 1. Background: ERGEG and its ERI 2. Electricity Regional Energy Markets 3. Organizational structures 3.1. RCC 3.2. IG 3.3. SG 4. Relationships scheme Summary

3. 3 ERI – SW Electricity REM 1st Implentation Group Meeting. Madrid, 20th July 2007 ERGEG (European Regulators Group for Electricity and Gas)  The ERGEG, which the European Commission set up on 11 November 2003 by Decision 2003/796/EC, is an Advisory Group of independent national regulatory authorities to assist the Commission in consolidating the Internal Market for electricity and gas. ERI (Electricity Regional Initiative)  In 2005, the ERGEG published initial consultations for a roadmap to achieve a single EU competitive market.  Respondents strongly supported the development of regional markets as an intermediate step towards a single market.  On 27th February 2006, the ERGEG launched the Electricity Regional Initiative (ERI), setting up seven Electricity Regional Energy Markets (Electricity REMs). 1. Background: ERGEG and its Electricity Regional Initiative

4. 4 ERI – SW Electricity REM 1st Implentation Group Meeting. Madrid, 20th July 2007 Electricity REMs (Regional Energy Markets) 1.Central-West: Belgium, France, Germany, Luxembourg and the Netherlands. 2.Northern: Denmark, Finland, Germany, Norway, Poland and Sweden. 3.France, UK, Ireland: France, Republic of Ireland, Northern Ireland and Great Britain. 4.Central-South: Austria, France, Germany, Greece, Italy and Slovenia. 5.South-West: France, Portugal and Spain. 6.Central-East: Austria, Czech Republic, Germany, Hungary, Poland, Slovakia, Slovenia. 7.Baltic: Estonia, Latvia and Lithuania. 2. Electricity Regional Energy Markets

5. 5 ERI – SW Electricity REM 1st Implentation Group Meeting. Madrid, 20th July 2007 2. Electricity Regional Energy Markets Baltic Central-East Central-SouthCentral-West NorthernSouth-WestFrance, UK & Ireland

6. 6 ERI – SW Electricity REM 1st Implentation Group Meeting. Madrid, 20th July 2007 3.1. RCC  RCC (Regional Coordination Committee) made up of the National Regulatory Authorities (NRAs) within the REM.  “Lead regulator” who is responsible for the organisation and running of the REM and chairs the RCC. Role:  Established by ERGEG, adopts its own decision making process and chairs the Stakeholders Group. RCC in the South-West Electricity REM:  RCC made up of CNE, CRE and ERSE.  “Lead regulator”: CNE RCC Meetings of the South-West Electricity REM :  1st SW RCC Paris, 18th September 2006  2nd SW RCC (Joint) Paris, 30th May 2007 → Work programme  1st Technical SW RCC Madrid, 7th June 2007 → Action plan (develops the work programme) 3. Organizational structures

7. 7 ERI – SW Electricity REM 1st Implentation Group Meeting. Madrid, 20th July 2007 3.2. IG  IG (Implentation Group) made up of market operators such as TSOs and power exchanges  Invites as well the European Commission and Member States. Role:  This is the do-er for each Regional Initiative. IG in the South-West Electricity REM: IG Meetings of the South-West Electricity REM :  1st IG Madrid, 20th July 2007 3. Organizational structures OMI Powernext REE RTE REN Power exchangesTSOs

8. 8 ERI – SW Electricity REM 1st Implentation Group Meeting. Madrid, 20th July 2007 3.3. SG  SG (Stakeholders Group) made up of market operators such as TSOs and power exchanges and other key market participants such as electricity generators, shippers, traders, suppliers, customers and their representatives  Invites as well the European Commission and Member States. Role:  Wide participation in the process including market players. SG Meetings of the South-West Electricity REM:  1st SG Madrid, planned for end of September. 3. Organizational structures

9. 9 ERI – SW Electricity REM 1st Implentation Group Meeting. Madrid, 20th July 2007 4. Relationships scheme