Update on IFA Actions Congestion Management Guideline Workshop Thursday 11 th January, CRE Offices, Paris Simon McVeigh, IFA Manager, National Grid Interconnectors Limited On behalf of RTE & NGIL 3 rd Stakeholder Group Meeting, Regional Initiative Thursday 1 st February, DTI Offices, London

2 Click to edit Master subtitle style Actions on IFA  Reserve Prices  Re-drafting of IFA Access Rules underway  To coincide with forthcoming consultation on other aspects  UIoSI  Options A & B for discussion  Intraday  Options 1 & 2 for discussion  Capacity Firmness  “…TSOs shall optimise the degree to which capacity is firm…”  IFA Availability & Reliability data collation  Stakeholders to provide cost impact data  Transparency  In scope for compliance with CM Guideline  Data archival etc in scope of software requirements

3 Click to edit Master subtitle style UIoSI Option A – Implement UIoSI without changing allocation process  IFA capacity currently offered as a whole day product (# MW / day)  i.e. nomination right for 24 hours (“band” of capacity)  MW nominated across any part of the 24hr day firmly retained by User  MW unused across whole of 24hr period sold into Daily Auction  Compliance with CM Guideline?  Implementation late-2007?  Limited impact on ‘efficient use’

4 Click to edit Master subtitle style UIoSI Option B – Implement with new daily allocation process  More granular IFA capacity offered (e.g. # MW / hr)  i.e. nomination right for 1 or more hours  MW nominated across any part of 1hr period firmly retained by User  MW unused across whole of 1hr period sold into Daily Auction  Requires development of new daily allocation process and tools, allowing allocation of hourly products. Not possible before mid-2008  Organisational impacts on the TSOs to be addressed  procurement, opportunity of the creation of an ‘Auction Office’  Not directly required by CM Guidelines  Greater impact on ‘efficient use’

5 Click to edit Master subtitle style Intraday Option 1 – Interim then Final ‘Capacity Platform’ Arrangements  CM Guideline allows 13 months for implementation of software system  Interim solution may accelerate compliance – 3-6 months? – 2007?  Interim solution : prorata ? Intraday auction ?  ‘Capacity Platform’ opportunity and feasibility : share results of identical studies performed on continental Europe  Specification would be developed in cooperation with TSOs and Users  Implementation costs could be approximately double – who pays?  Final ‘Capacity Platform’ arrangements could be delayed by resource conflict Option 2 – Implement Final ‘Capacity Platform’ Arrangements Directly  ‘Capacity Platform’ opportunity and feasibility : share results of identical studies performed on continental Europe  Specification would be developed in cooperation with TSOs and Users  Single implementation, competitively tendered, lower costs

6 Click to edit Master subtitle style IFA Summary unplanned outage data 2002 – 2007* Year06/0705/0604/0503/0402/03 Total number of trips Duration:0 – 2hrs – 5hrs – 24hrs hrs Availability 91.69%94.65%96.67%93.07%91.69% Planned unavailability 1.74%2.66%2.30%1.72%1.56% Unplanned unavailability 6.58%2.68%1.03%5.22%6.74% *2006/07 data YTD (April – December 2006