1. Development of electricity market in Lithuania 2010 Lina Skrabutėnaitė Baltpool UAB Kuressaare 2010 06 04

2. Main changes from beginning of 2010...  Ignalina Nuclear Power Plant is closed:  Lithuania being exporting country now becomes importer.  Following EU Directives, AB Lietuvos Energija was restructured by separating TSO and Market Operator activities into separate companies.  Regulated tariffs are removed for large consumers, around 35% of Lithuania’s consumption.  Start up of Power Exchange from January 1, 2010. LITHUANIAN ELECTRICITY MARKET

3.  From January 1 st 2010 regulated tariffs are not applicable for customers, that constitute 35 % country demand; (Customers with allowed capacity of 400 kV must chose independent suppier)  From January 1 st 2011 – 45 %;  From January 1 st 2012 – 55 %;  From January 1 st 2013 – regulated tariffs will be applicable only for retail (domestic) customers ;  Starting from year 2015, January 1 st, only non regulated tariffs will be applied for all customers. GRADUAL REMOVAL OF REGULATED TARRIFS

4. ELECTRICITY MARKET IN LITHUANIA Bilateral contracts Power Exchange Regulation Market Electricity trading Balancing Market Market Operator BALTPOOL UAB TSO LITGRID UAB 4

5. In a free energy market we create value to the society, insuring reliable, transparent equal trading process, being trusted market place. BALTPOOL MISION 5

6. 6  Organizing of physical trade in electricity;  Registration and monitoring of settlement guarantees for trading;  Registration and trainings for market participants;  Settlements among market participants for trading in PEX;  Settlements for forward contracts;  Registration and tracking of OTC bilateral contracts;  Reporting to local regulator, Ministry of Energy, other stakeholders. MARKET OPERATOR IN LITHUANIA MARKET OPERATOR IN LITHUANIA

7. Days Turnover, MWh TRADING TENDENCY, MWh 7 JanuaryFebruaryMarchFebruaryApril

8. Days Turnover TRADE TENDENCY, MLN. LT 8 JanuaryFebruaryMarchApril

9. -Average price in PEX (IQ) was - 136,2 LT/MWh Day Price, LT/MWh PRICE IN LITHUANIAN PEX 9 January FebruaryMarchApril

10. ELECTRICITY DEMAND ELECTRICITY DEMAND (LITHUANIA’S ELECTRICITY DEMANAD ON JANUARY – APRIL : 3.684.686 MWh, THE TURNOVER OF PEX IN LITHUANIA - 2.225.115 MWh)

11. MAIN FUTURE DEVELOPMENT TOPICS New web page Urgent market messages (UMM)Urgent market messages (UMM) Tool for customers to reach independent suppliersTool for customers to reach independent suppliers Cooperation with NASDAQ OMXCooperation with NASDAQ OMX Joint work with regulatorJoint work with regulator 11

12. TOWARDS COMMON EU ELECTRICITY MARKET

13. AMBITIOUS PLANS FOR INTEGRATION (BEMIP CONTEXT AMBITIOUS PLANS FOR INTEGRATION (BEMIP CONTEXT) NORD POOL PX Polish PX Gielda Energii 2009 Izolated markets of Baltic States No common principles organized electricity market NORD POOL PX Polish PX Gielda Energii 2011 Creation of Common Baltic Electricity market – organizing electricity trading based on Nordic countries principles, removing of barriers and regulated tariffs Common Baltic electricity market Common Nordic-Baltic electricity market Polish PX Gielda Energii Estlink II Estlink I Swedish- Baltic link LitPol link 2015 Baltic electricity market integrated with Nordic and Continental Europe electricity markets Implementation of new interconnection projects Estlink I

14. Information available: www.baltpool.lt www.baltpool.lt THANK YOU FOR ATTENTION QUESTIONS?