ETSO main 2006 Issues for West-Central Europe Market Development Brussels, 20 June 2006

Cross-border forward and day-ahead congestion management Several significant developments materialized: France-Belgium-Netherlands: implicit allocation of daily capacities by market coupling (TLC F-B-NL) from October 2006 if regulatory approval explicit auctions for month and year capacity on all borders Germany (including Cegedel Net of Luxemburg being part of German control area): Coordination of explicit auction on border with Switzerland, leading to significant congestion improvement on the C-W-E borders Germany-France: Coordinated explicit auctions for yearly, monthly and daily capacity on the border since 1st January.

Cross-border forward and day-ahead congestion management Further developments in preparation Secondary capacity market of capacity: features have been proposed to regulators Four Markets Coupling Project (4MC Project) Commitment between TLC (F-B-NL) partners and Statnett-Nordpool for day-ahead market coupling when NorNed cable operational Research & Development towards extension of the day-ahead market coupling: Multi-Market Coupling (MMC)

On-going Intra-day developments on cross-border congestion management Intra-day explicit capacity allocation mechanisms have been introduced on several borders An intra-day trading platform has been set up between EEX and RWE Implicit allocation by intra-day market to follow the day-ahead market coupling where applicable Transparency TSOs made proposals for publishing market relevant information, including aggregated load and generation data ETSO to set up a Transparency platform (under preparation)