1. © ONTRAS 201003.03.2010 Development and innovative strategies for transmission system operators Ralph.Bahke@ontras.com Ralph Bahke Managing Director, ONTRAS – VNG Gastransport GmbH

2. © ONTRAS 201003.03.2010 Increasing cross-border gas transmissions in Europe Source: EUROGAS

3. © ONTRAS 201003.03.2010 European Regulation What Investors need Long-term stability of framework Sufficient incentives Realistic consideration of current monetary risks Consideration of CAPEX for the building phase Consideration of the delay in returning of CAPEX and OPEX Consideration of additional costs caused by national regulations Fair tariffs

4. © ONTRAS 201003.03.2010 3. Energy market package:  Guideline Electricity market  Guideline Natural gas market  Regulation cross-boarder power trading  Regulation Gas transmission Systems  Regulation ACER Overview: Where the EC will go to? Increase of unbundling Basic model: Ownership Unbundling (OU) Exceptions: Independent System Operator (ISO) and Independent Transmission Operator (ITO) Neutralising the conflict of interest between Trade and Network Preserving the confidentiality of economically sensitive network access information Incentives for investments into the grid Three models Three goals NetworkStorageTrade Increased unbundling Legal and operational unbundling for storage operators (separated company) Retention requirement of relevant data for 5 years Realisation by 3 March 2011 (Member States) by 3 March 2012 (Companies) (Art. 9 I, 54 I RL) Future regulation Europe – 3rd Energy Market Package

5. © ONTRAS 201003.03.2010 Future Regulation developing network codes EU-Commission asks ACER to develop frame guidelines (by consulting the market) within a period of 6 months EU-Commission asks ENTSOG to develop network codes (by consulting the market) within a period of 12 months on the basis of the ACER frame guidelines ENTSOG sends the draft to ACER which will again consult the market within a three month period and will pass its opinion and recommendation to the EU- Commission EU- Commission receives Network codes and ACER- opinion and may either ask for a new draft, develop its own network code or let the original draft be converted into European Law by the Comitology Procedure

6. © ONTRAS 201003.03.2010 European Framework New capacity management Goal: Apply for trans-border and trans-market area interconnection points Basis for new network codes (ENTSOG) Adaptation of existing contracts within six months Joint Platforms to book primary and secondary capacities Capacity products: Standardised firm and interruptible capacities for both directions A definite share has to be reserved for short term capacity Capacity allocation: Common assigning of primary capacity by using auctions or pro-rata methods Standardisation of secondary capacity products, too ERGEG: Framework Guidelines for capacity allocation

7. © ONTRAS 201003.03.2010 Cooperation within the GASPOOL market area ONTRAS Network within GASPOOL market area: Allows access to Transmission systems of DONG Energy Pipelines, Gasunie Deutschland Transport Services, ONTRAS, WINGAS TRANSPORT and Statoil Deutschland Transport About 700 entry and exit points About 90% of German natural gas storage capacities VHP GASPOOL Hub International net connection points (Poland, Czech Republic, Denmark, Netherlands, Belgium) About 300 downstream network operators

8. © ONTRAS 201003.03.2010 Regulation of network access Shaping by cooperation GASPOOL Hub Cooperation ONTRAS/ RWE Transgas Net Combined marketing of cross-border capacity since August 2007 Since October 2009 including GASPOOL Hub or Steinitz to E.ON Gas Transport www.gatrac.com

9. © ONTRAS 201003.03.2010 Open tasks/problems Harmonisation of EU and national regulations Harmonisation of European network codes Sufficient time for implementing new regulations Sufficient benefits for investment Continuous flexibility and incentives for own initiatives of TSOs Future Regulation Developing new rules

10. © ONTRAS 201003.03.2010 Summary Creating more gas transport capacity needs European network codes and Harmonisation of European framework Sufficient implementation periods Avoiding premature national unilateralism Incentives to provide future investments in gas infrastructure “The ends justify the means”

11. © ONTRAS 2010 Thank you for your attention! 05.06.2016