Classification: Statoil Internal Status: Draft Mod 156/156a Questions regarding the proposals…

2 Questions What are the advantages/disadvantages of having more than one auction round? Why only a single round for auction one in 156a? Why no re-surrender of capacity between rounds? What are the advantages/disadvantages of having auctions more than once during the winter? Specifically considering – Do more rounds help bidding strategy? – Do more rounds reduce risk? – Do more rounds increase complexity and costs? – Does this reduce impact on wholesale markets?

3 More Questions What are the advantages of holding an auction prior to the QSEC If there are benefits to holding more auctions with more rounds then why not hold auctions more auctions allowing them to be closer to the month. How do both proposals impact on the use it or lose it provisions in practice? If the answer to use it or lose it is the ability for NG to provide more interruptible product how will the market know whether this product will be provided? (Market information) Effect on buy back risk? How will this be managed Who is it appropriate to benefit from efficiency gains?

4 More Questions Under transfer Initiation process NGG have 10 days to state which ASEPs are sold out. Users only get 2 days to decide whether they wish an ASEP to be included. Why the difference in timescales? Please explain: – ’Treatment of Capacity Made Available by Users – 18. Where Capacity made available by Users in the Trade Initiation Process has resulted in a given trade (been allocated), the Users will receive a bid price based on the amount(s) allocated multiplied by any relevant Exchange Rate(s). The User’s holdings at the ASEP where the Capacity was made available will be reduced accordingly’

5 More Questions Results Publication – How will visibility of moved capacity be achieved? – Will there be a report of how much capacity has been moved where and at what exchange rate? – How will this impact on the daily/interruptible capacity auction process?