Jacques LAURELUT GTE First Annual Work Programme Consultation GTE President GTE+ Workshop on GTE+ Work Programme 24 June 2008

TSOs Third Package Responsibilities Provide capacity, access services, information to facilitate the market Robust Responsive Transparent consultation TSO role Tasks will include, in particular, the development of: an annual work programme Network codes a 10-year network capacity development plan annual winter supply outlooks an annual report Consultation and development processes To establish the annual workprogramme To consider change proposals To inform 10 Year Capacity Development Statement The formal TSO body tasks will recognise the significant role TSOs can, and should have, to facilitate the single European gas market ….. The key roles are to provide capacity, access services and information. The TSOs will listen and respond; consultation will be the cornerstone of development; the objective (wherever practical and possible) to deliver the framework and codes to support the market The rules would not extend to ALL market rules; that would be beyond our role; beyond our competencies. We have only sought to be involved in the development of codes and rules related to technical and operational provision of network access services and system balancing; Codes should only concern rules that are to be implemented and can only be implemented by TSOs The other market players should address the rest ; trading platforms, for example, are for the market to design Capacity development statement to inform the market Network Codes to provide the foundation for the market Capacity Development Statement to inform the market Outputs

ENTSOG Interim Arrangements 1 Feb 2008 Third Package Implementation GTE GTE+ ENTSOG Interim upgraded organisation, GTE+ Hire 3 additional people GTE President/GTE+ Transition Manager role Work has started Liaison with ERGEG, wider stakeholders inc Easee-gas The GTE+ efforts are focussing upon: Establishing the new organisation/way of working Annual Work Programme Consultation Transparency Ten Year Statement Capacity initiatives to prove the ENTSOG concept GTE+ and TSO member commitment to promote market evolution At this moment you might ask two questions TSO have not consulted with stakeholders about the content of this consultation document so why should stakeholders believe that they can influence the outcome? This programme focuses on projects and does not mention development of codes. The answers would be: We have to start somewhere and this set of priorities was already defined last year. I notice the GRI NW has defined more or less the same set of priorities. So the document indicates the work we are expecting to do in the short term and we would like to know if you support this programme. If it is not, and there are things that we can do in the short term and to the extent of our capabilities, then we would like to evolve the programme. We believe that these projects will lay the foundation for significant progress . Later we will need to move to code development and identifying the priorities will be a task for the next annual work programme.

Challenges of the Transition to ENTSOG GTE+ ENTSOG Membership Voluntary Compulsory Participation Optional Mandatory Decision making Consensual Voting processes ... but we do not have the Third Package yet. Post Third Package we will effectively have compulsory TSO membership of ENTSOG; participation will be mandatory; TSOs can expect to be rewarded for their efforts to support the market Necessarily ENTSOG will require a voting process to ensure that it’s objectives are met. We are currently working in a voluntary framework, voluntary for TSOs but also where it is much harder to overcome regulatory and legal problems than it will be post Third Package. Thus the choice of work areas is critical and that is why we want to engage with stakeholders now to see what we can do in the short term. Funding of costs No explicit provision Underwritten

First GTE+ Consultation on Annual Work-Programme Why consult? To indicate our current work plan priorities for 2008/9 To establish interactions with stakeholders: Are the priorities appropriate? Are objectives, deliverables realistic, credible and achievable? Will the programme assist the development of the market? Do market players have comments that would help TSOs deliver best possible work programme? Consultation Refinement of programme We think consultation is important We will develop full ENTSOG processes later but we wanted to share views and get feedback from stakeholders. We want to hear from stakeholders; we want to respond to stakeholders. If the short term there are better priorities and deliverables then we will try to amend the programme. Why should stakeholders believe that they will be listened to? Why no voting system? We will have to explain why or why not stakeholders views have been incorporated in proposals and these reasons have to be visible. So the processes have to be transparent and open. Furthermore the development of network codes will be overseen by the Agency and the Agency will organise a formal market consultation. 26th September Refined Programme and Update on Progress 24th June Stakeholder Workshop 31st July Consultation Close 19th May Launch