Logo(1.00”:3.33”) Font is Rotis Sans Serif however font may have to be embedded as it is important that this does not change on any presentations Size 32 points Yellow Line ( : 3.50) Yellow must follow EFETnet’s yellow pantone uncoated 108C Width 6 points A EFETnet Company below line:5.00” This is a combination font “EFETnet’ and rotis sans serif. This as well can not change and may have to be embedded Lines-top (1.00”:5.00”) Black, thickness1/4” Lines –bottom (3.25”:5.00”) Black thicknesss3/4

EFET „R_ISO Model“ – stakeholder consultation A stakeholder consultation on R_ISO model took place including a workshop on the model in Prague as a follow up Comments from all network using stakeholder groups and CEER supported the principles proposed in the model by EFET Joint letter by GEODE and EFET, supported by some other associations First draft of joint paper on market integration in preparation based on EFET R_ISO, to be presented in June in GRI-SSE Market users want network integration fast

EFET seeked support form others Basics of the letter We strongly welcome the 3rd internal energy market package and its effort to enhance the competitive single European market for gas and electricity. The multi-system TSO operation should include common handling of capacities, the creation of a joint balancing market, joint system access and joint system enhancement as well as all aspects of transparency. All TSO’s must work together as soon as possible with a view of creating a (regional) integrated entry exit system and a one-stop shop for all system user needs. Timetable (next slide) In conclusion to establish harmonised rules on a European basis system user involvement on an equal basis is essential to achieve an efficient market for multi-system operation legislative support is required

Proposed timeline for establishment of a regional E/E model in SSE Region Harmonisation of rules at regional level (common transmission model) Multi-system capacity platform and market based balancing Harmonised regional network access Coordinated investment planning and regional balancing Joint regional network operation Regional entry-exit models Interconnection agreements (incl. operational balancing accounts) After 2011 end 2011 mid 2011 end 2010 mid 2010 end 2009 mid 2009 end 2008 Integration of the Regional entry-exit models with each other

Conclusion of Madrid Forum 22. The Forum acknowledged the strong wish of users for fast progress and legislative measures in order to enhance progress in network cooperation on European level. EFET, IFIEC, OGP, GEODE and CEFIC consider that the concept of regional network cooperation presented by EFET and GEODE is necessary (a possibility) to enhance market integration. The Forum invited ERGEG to consider the possible implementation of this concept in all Regions. 23. The Forum recognises the need for developing market based balancing mechanisms, reducing balancing zones and sizes across regions, and for discussing the possible coordination role of hubs. The Commission invites all Gas Regional Initiatives to consider including these topics in their list of priorities. 15. The Forum welcomed the initiatives of GTE+ and ERGEG to develop codes and guidelines. In this context, the Forum underlined the strong demand for a transparent and democratic consultation process, which should involve all stakeholders in the drafting process from the beginning. This process could be differentiated according to stakeholder interests in respect of the nature of the code to be developed. Work in progress