1. CASC.EU SA and its role in Explicit auctions 16/11/2010 CASC.EU SA 1

2.  Incorporated on October 1, 2008  Located in Luxembourg  Operations started: Nov 28 th 2008 Explicit Auctions (Y/M/D) Clearing and settlement towards MPs and congestion rent distribution to the TSOs Service provider to the TSOs regarding Market coupling  Since November 10, 2010; 12 shareholders Netherlands, Belgium, France, Italy, Greece, Slovenia, Austria, Switzerland, Germany (3), Luxemburg 16/11/2010 CASC.EU SA 2

3. Shareholders & Board of Directors  General Meeting appoints the directors and may remove them by resolution of the General Meeting.  All power, except legally required to stay at shareholders level (mainly financial), is delegated to the Board  Board has 12 members  All are Board Members / CEO of the TSOs Chairman of the Board:Mr Pierre Bornard (RTE) Vice Chairman:Mr Thomas Karall (APG) Chairman of the Audit Committee: Mr. Luigi De Francisci (Terna)  Daily operation is delegated to the CEO of CASC.EU 16/11/2010 CASC.EU SA 3

4. Role of CASC  CASC is a service provider to the TSOs  Daily operation of services, related to the cross border allocation of transmission capacity, outsourced to CASC  Expert-role regarding these issues  Possible project management role  First line of contact with Market Participants  TSOs will remain responsible for:  Auction rules  Contacts with the regulators  Calculating available capacities 16/11/2010 CASC.EU SA 4

5. Services provided by CASC.EU  Explicit Auctions  Long term and daily auctions  Clearing and settlement of auctions  Market Coupling services  Post-coupling and Publication  Collection of congestion revenues and distribution to the TSOs  Registration of Auction participants  Publication of all relevant information 16/11/2010 CASC.EU SA 5

6. Working area CASC.EU 16/11/2010 CASC.EU SA 6

7. Regional Groups  Regional Groups organise themselves freely.  Dealing with, and responsible for, subject matter of specific regional or geographic interest, the implementation of at least the following:  sharing keys of auction revenues and costs  adaptation of harmonized auction rules within the respective region  all issues related to contact with regional regulators  contractual relationship towards CASC.EU (SLA) 16/11/2010 CASC.EU SA 7

8. Handling change requests  Discussions  Changes based on requests from MP’s, TSO’s and Regulators  Feasibility  Some changes could affect the core structure of the system and are therefore not recommended  Timing  Auction calendar and gate closure time(s)  Harmonisation of rules  Today the number of differences per border is significant. Target is to harmonise the Long Term Auction rules as of 2012 16/11/2010 CASC.EU SA 8

9. Timeline  All systems ready and tested by CASC.EU and TSOs mid February 2011  01-03-2011 launch of joint explicit auctions on Swiss Northern Borders  01-04-2011 launch of joint explicit auctions on all Italian borders 16/11/2010 CASC.EU SA 9

10. The EXAU system The way it works 16/11/2010 CASC.EU SA 10

11. EXAU System Integration CASC-CWE EXAU System Market Participant User Interface TSOs BANK SAGE Booking and Invoicing WEBSITE CASC-CWE and ETSOVista TSO REPORTING Bids Transfers Resales Results Participation Agreement ATC Offered Capacity Results Auction Spec Offered Capacity Results Capacity Rights Resales Results Participation Agreements Payments Account Reporting Payments Accounting Document 16/11/2010 CASC.EU SA 11

12.  Opens directly from a web-browser  No Install required by the participant  Participant can access the system from anywhere  Almost all functionality of system available directly from user interface menus  No manual XML creation needed  Cooperation to make the user experience more user- friendly  Excel copy/paste integration EXAU Participant Application 16/11/2010 CASC.EU SA 12

13.  Registration – Entitlements per border and direction  Maintenance / exception periods  Peak products (Peak, Off-Peak)  Secondary Market updates - manual confirmation of Transfers by Beneficiary  ITR Designation for nominations A – N (One to many)  Import of old Long-term contracts and Merchant Lines (not auction-based) EXAU Changes for CSE Region 16/11/2010 CASC.EU SA 13