Shippers’ Meeting 29 June 2005 NH Hotel - Naarden 15.05.2019

Program Introduction Paul van der Laan Conditions and system 2006 Jan Willem van Dijk Change in structure TSC 2006 Jan Eggink Miscellaneous Jan Eggink Closing Paul van der Laan Lunch

Program Introduction Paul van der Laan Conditions and system 2006 Jan Willem van Dijk Change in structure TSC 2006 Jan Eggink Miscellaneous Jan Eggink Closing Paul van der Laan Lunch

Conditions and system 2006

Penalty => Surcharge Introduction Highlights Penalty => Surcharge More time to balance exits More tolerance during the day Since previous presentation

Subjects Delay time between entry and exit Tolerance on contracted transport capacity Tolerance principles Tolerance amounts Commodity pricing Surcharges exceeding tolerance boundaries Incentive day

1 Delay in entry with respect to exit Default Two hours delay Balance/imbalance based on Exit(t) = Entry(t+2) Per portfolio Independent of ambient temperature Gas day on entry time from 6.00-6.00 (LET) Rules and imbalance correction for first two hours of entry and last two hours of exit (“two hour settlement”): New regime New portfolio Change in entry or exit contract in an existing portfolio Two hour settlement at the end of each month

1 Delay in entry with respect to exit Exceptions: no delay time TTF On entry time =>also all trading on entry time 1.5 hour time for exit balancing when TTF is entry Entry balancing via TTF remains the same as in the current system Wheeling and short haul Shipper choice: Exit(t) = Entry(t) Complete portfolio Per calendar year Compared to t+2 non optimal for pipeline network -> 25% hourly and cumulative tolerance reduction

2 Tolerance on contracted transport capacity On firm entry and exit contracts in a portfolio On interruptible contracts the tolerance amount is reduced in line with the applicable tariff class percentage Wheeling and short haul portfolios limited to 2%* tolerance on the hour No tolerance on TTF Tolerance based on monthly average of contracted transport capacity in a portfolio Overbooking of domestic exits and interruptible GTS retains right to adjust tolerance percentages of shippers in case of overbooking (e.g. no tolerance for non users above normal demand capacity) *Properties differ from current operational margin

3 Tolerance principles Example of portfolio with 20% hourly tolerance

4 Tolerance amounts Hourly and cumulative tolerance Depending on number of portfolios and portfolios sizes Development from three class system with fixed percentages to “tax bracket” system Three brackets All shippers receive tolerance of first bracket Shippers above the first threshold receive the tolerance of second bracket etc. Introduction of minimal hourly tolerance level For large diversified portfolios the portfolio uncertainty reaches a constant percentage Portfolio splitting GTS will provide portfolio hourly and cumulative tolerance per portfolio on an affiliate company level

4 Tolerance amounts “Tax bracket” system with minimum level Indicative percentages (transport contracting 2005) For default portfolios and temperatures above 0 oC: For hourly and cumulative tolerance below 0o C a linear decrease from the level in the table above to respectively 2% for hourly and 4% for cumulative tolerance at –17 oC Reset to neutral at end of the gas day Bracket mln m3/h Hourly tolerance per m3/h Cumulative tolerance per m3/h Minimal hourly tolerance % Minimal cumulative tolerance % 0.00 – 0.25 30% 120% 0.25 – 1.00 8% 32% 13.5% 54% 1.00 – > 5.7% 22.8% 6% 24%

4 Tolerance amounts Hourly tolerance as function of portfolio size

4 Tolerance amounts Daily tolerance New regime 24% of contracted hourly capacity Reset to neutral (0) at end of gas day No fall back to zero level in case of exceeding boundaries No temperature dependency In the view of GTS reset at the end of the gas day is not a TSO task because of the trading implications Decrease of daily tolerance is first step in repairing reset amount to levels corresponding to the TSO role of GTS Current regime 2% of daily volume based on accumulation of 2% uncertainty margin 2% uncertainty is valid for 1 entry or 1 exit Uncertainty in portfolio balance volumes is much less

On day ahead spot indicators 5 Commodity price On day ahead spot indicators APX Netherlands (TTF) APX UK (NBP) APX Belgium (Zeebrugge) Excess on lowest indicator Shortage on highest indicator Exceptions Monthly average APX Netherlands Reconciliation Two hour settlement

6 Surcharges exceeding tolerance boundaries Surcharges expressed as percentage of excess or shortage commodity price Excess Low commodity price Shortage High commodity price Hourly 10% 15% Cumulative 100% Daily

7 Incentive day Introduction of incentive day Days with high loads on the transportation system (e.g. ambient temperatures below 2 oC) Shipper is required to balance on Exit(t) = Entry(t+1) Announcement of an incentive day by GTS day ahead before 11.00 hour L.E.T. All other balancing rules, boundaries and penalties remain unchanged Portfolio is entered into “incentive day” scheme on calendar year basis Incentive Shipper receive a financial incentive based on the portfolio size in the applicable months of the year Incentive amount is not yet decided

Closing remarks Current status not final Subject to approval DTe Tolerance percentages dependent on transport contracting in 2006 Presented tolerance percentages and examples based on default portfolios Attention drawn on 25% tolerance reduction for non default portfolios on Exit(t) = Entry(t)

Program Introduction Paul van der Laan Conditions and system 2006 Jan Willem van Dijk Change in structure TSC 2006 Jan Eggink Miscellaneous Jan Eggink Closing Paul van der Laan Lunch

Transmission Service Conditions-2006 (1) Dutch Gas Act: Gas Conditions: Tariff structures and Conditions Proposals by joined network operators (JNO) to DTe DTe procedure: DTe compares proposals with legal requirements/standards DTe sends request to amend to JNO JNO return amended proposals to DTe Assessment by DTe (pending further notification from Brussels)

Transmission Service Conditions-2006 (2) Proposals JNO (conditions related to GTS): Tariff structure Conditions: Connection conditions Transmission conditions Metering conditions Allocation methods General legal tasks

Transmission Service Conditions-2006 (3) Planning Tariff structure: Consultation -> finished Amended version -> DTe Waiting for DTe assessment (21 July 2005) Conditions: Consultation (14 June 2005) Request to amend from DTe to JNO (mid July?) Amended version from JNO to DTe (4 weeks later) Assessment DTe (Q4 2005?)

Transmission Service Conditions-2006 (4) TSC-2006 in addition to Gas Conditions Elaboration/deepening fundamentals of Gas Conditions No duplications New framework, same structure (main text + exhibits) Timing: after assessment of Gas Conditions planning 1 October 2005 Explanation of changes in (next) Shippers’ Meeting

Miscellaneous QC 2006 Monthly factors backhaul 2006 Learning year: extended to 2006 for residential customers Tariffs 2006 Click & Book: new release Net Topology Reminder: fill out and send in the customer satisfaction questionnaire

Program Introduction Paul van der Laan Conditions and system 2006 Jan Willem van Dijk Change in structure TSC 2006 Jan Eggink Miscellaneous Jan Eggink Closing Paul van der Laan Lunch

Thank you for your attention and enjoy your lunch! Shippers’ Meeting 29 June 2005 NH Hotel Naarden Thank you for your attention and enjoy your lunch!