French Working Group Evolution of the contractual structure of the gas transportation network South Gas Regional Initiative 8th IG Meeting – 16th February 2008

2 South Gas Regional Initiative - 8 th IG Meeting – 16th February 2008 A new consultation body in France Launch of an organised market consultation process –Deliberation of CRE of 18 September 2008: Creation of a consultation body on the rules governing transportation Co-chaired by French TSOs GRTgaz and TIGF 4 working groups subsequently created by this new consultation body: –Evolution of the contractual structure of the transmission network –Access to primary and secondary capacity –Rules applicable to CCGTs –Balancing Participants to these working groups: TSOs, shippers, CRE and French Energy Ministry

3 South Gas Regional Initiative - 8 th IG Meeting – 16th February 2008 Working group « Evolution of the contractual structure of the gas transportation network » Position paper of new entrants sent to TSOs, CRE and French Energy Ministry in October 2008 : –Difficulty to get access to GRTgaz South –Proposal to merge GRTgaz North and South balancing zones –Description of solutions to merge zones Working group « Evolution of the contractual structure of the gas transmission network » set up in November 2008: –Item 1 : Access to GRTgaz South balancing zone => Priority –Item 2 : Access to GRTgaz North balancing zone (L and H gas) –Item 3 : Access to TIGF balancing zone Working group chaired by a new gas supplier (EdF)

4 South Gas Regional Initiative - 8 th IG Meeting – 16th February 2008 Item 1 : Access to GRTgaz South balancing zone Solution under study to improve the access to the South: Merger of GRTgaz North and GRTgaz South zones Objective: To define and propose to CRE the implementation of an economically sustainable and efficient solution for the merger of the GRTgaz North and South zones Complementary options envisaged: –Contractual commitments (flow commitments) – currently discussed –Investment in transmission network Ambition: Merger of zones by 1 st April 2011

5 South Gas Regional Initiative - 8 th IG Meeting – 16th February 2008 Flow commitments – Working plan First stage – completed: Network analysis to identify congestions and to dimension flow commitments needed to resolve the congestions. European benchmarking of flow commitments mechanisms Second stage – ongoing: Feasibility study of the proposed flow commitments Third stage – to be initiated if outcome of the feasibility study positive: Definition of operational mechanisms of flow commitments, including transport tariffs adjustments Fourth stage: Implementation by April 2011

6 South Gas Regional Initiative - 8 th IG Meeting – 16th February 2008 Timetable