The Status Report for IG meeting Wojciech Jarosz February 13 th 2009

1)Project Plan 2)IT-issues: status and next steps 3)Documents 4)Revenue distribution 5)Planned communication The Coordinated Auction Office CEE

The project is following the schedule presented on the next slide There are some critical issues:  Acceptance of Technical Requirement Specification  Details of concepts (e.g. Data exchange with other Regions)  Dry-runs (internal and external)  Acceptance of Auction Rules  Decision to GO LIVE Project Plan

Cons ultat ion with Mark et 09/0810/0811/0812/0801/0902/0903/0904/0905/0906/0907/0908/0909/0910/0911/09 12/09 01/10 Test calculations for D/M/Y concepts RM concept Improvement of D/M/Y concepts Scheduling concept Emergency Procedures concept/Firmness IT ContractIT Installation IT Tests & Dry- run TSOs Agreement with TSOs outside CEE region, Data Exchange, UCTE Allocation Rules Shareholders Agreement Update tools of TSOs inside & outside CEE region (incl. 7 days regime) Accep tance of Regul ators Project Plan For Next Months after last IG CAO People, Services Revenue distribution GO LIVEDry-run Market Update of Allocation Rules Rep ort for Reg ulat ors Consultation with Regulators Update tools of Market Participants Service Level Agreement Inter TSO Agreement

Technical Requirement Specification (TRS) has been submitted by IT Provider TSOs, WGs and CAO analyzed the TRS and found some open issue which need to be solved – IMPORTANT: AVAILABILITY OF DATA FROM OTHER REGIONS Several meetings have been organized for detailed discussion about TRS The acceptance of TRS is planned for the end of February 5 IT-issues status

March: Notification of PROVIDER that the CAO-IT for yearly, monthly and daily allocation procedure is error free and ready for preliminary acceptance. May: End of the failure free trial period and notification of the PROVIDER that CAO-IT for yearly, monthly and daily allocation procedure is ready for final acceptance. 6 IT-issues next steps

Auction Rules and Contracts have been submitted to IG The feedback from Regulators was presented and preliminary discussed in first part of 2008 The adjustment of Auction Rules has to be done according  the current remarks from IG  the updated processes as the results of TSOs and CAO current activity work 7 Contracts and documents

8 Revenue distribution Based on the developments and investigations of WG-CA and Consentec the following findings have been made: 1 Static factor and 2 dynamic keys proposed: Static Key: e.g. multi years moving average of historical auction income 1st Dynamic Key: Integral version of MAU key; reflects grid usage and prices 2nd Dynamic Key: AU_CP2 key; reflects flows on tie-lines and respective clearing prices (similar to bilateral auctions)  remark: based on these recommendations CAO (supported by WG- CA) can analyze the final settings; with that recommendation a huge flexibility is given (that is: currently no final decision on the sharing is related with this decision! This is to be decided later in 2009)!

9 Planned communication 1st Workshop - March Current Status of the Project and the next steps FB methodology/PTDF and AMF calculation Allocation Principles Allocation algorithm (optimization function, bidding path, CZ/SK MC) Capacity products (duration, UIOLI/UIOSI, firmness, curtailment) Transparency (which data available) Principles of participation (registration, collaterals) Capacity transfers (slicing of PTRs)

10 Planned communication 2 Workshop Current Status of the Project and the next steps Dry-run with market participants (procedure, timing, data exchange, evaluation) 3 Workshop Current Status of the Project and the next steps The first feedback from Dry-run 4 Workshop Report from Dry-run 5 Workshop Presentation of Allocation Rules Information on planned start of FBA allocation