GRI NW Investment Workshop 4 June Den Haag Implementation of recommendation 4: ‘Make elements transparent that help achieve the investment prerequisites’ Bas Barten (GTS) GRI NW TSO project leader

The building blocks of investment ‘Adequate fundaments like an appropriate RoR need to be in place before TSOs are able to communicate their investment prerequisites to the market’

Implementing recommendation 4 Make elements transparent that help achieve the investment prerequisites TSOs willing to build market’s need for infrastructure TSOs eager to be transparent about publishing minimum commitments The investment should be economically viable and can only take place in a stable regulatory framework with tariffs that include an appropriate rate of return (as stated in art 3 of regulation 1775/2005 and art 13 of regulation 715/2009) Member States, Regulators and TSO need to agree on remuneration, depreciation and user commitment before TSOs can publish clear investment prerequisites to the market

TSOMinimum commitmentPrerequisitesImplementation EGTmin.80%>15 years max.5%<5years (last OS), future minimum commitment depends on circumstances/framework NRA + RoRImplemented WGTfuture commitment depends on framework NRA + RoRNext Open Season Thyssengasfuture commitment depends on framework NRA+ RoRNext Open Season GUD/GTS10 years each shipper (Last IOS), future commitment depends on framework NRA + RoRImplemented Ontrasfuture commitment depends on framework NRA + RoRNext Open Season DEPfuture commitment depends on framework NRA + RoRNext Open Season

TSOMinimum commitmentPrerequisitesImplementation Energinet.dk70% of capacity, 10 years NRA + RoRImplemented FluxysEconomic testNRA+ RoRSept 2010 GaslinkNRA and Gaslink make an investment plan NRA + RoRImplemented GRTGaz10 years each shipperNRA + RoR + Test Implemented GRTGaz DT10 years each shipperNRA + RoRImplemented SwedegasNot applicableExemption from government Implemented National Grid NPV Revenue over 8 years > 50 % of costs Investment in RAB Implemented

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