Joint Workshop EFET and GRI REM SSE 21 January 2008, Prague, Czech Republic

2 Agenda 1. Introduction and welcome 2. Presentation by EFET: Regional ISO Model (“R_ISO”) 3. Regional TSO Cooperation: Presentation of practical example and best practice 4. Comments from Stakeholders 5. Conclusion and outlook

3 Welcome: AEEG  Purpose of the meeting: To identify where practical implementation of TSO cooperation could work - Regional investment planning - Balancing zones - Tariffication  Aim: To facilitate market integration Link to the 3rd package

4 Presentation by EFET: Regional ISO Model (“R_ISO”) Presentation by EFET: Mr Stephan Ressl (Econgas)  Presentation of the R_ISO model (in brief)  Presentation of comments received from stakeholders (consultation period, deadline 10th January 2008)  As agreed on 9th October 2008 at the last IG meeting in Maribor

5 Regional TSO Cooperation Presentation of a practical example and a concrete proposal  Practical example from the electricity side in the Nordic region: Presented by Mr. Gunnar Lundberg (Vattenfall)  Concrete proposal from natural gas: Proposal for a regional transmission company NETS (New European Transmission System) Presented by Mr. Peter Horvath (MOL)

6 Comments on the regional ISO model Comments from stakeholders  EUROGAS  EURELECTRIC  GTE  OGP  CEER  Any other stakeholders Statement from the European Commission on the proposed R_ISO model

7 Joint GRI REM SSE – EFET Workshop Proposed conclusions 21 January 2008 Prague, Czech Republic

8 Conclusion  Conclusions of today’s workshop - Practical examples of regional TSO cooperation already exist  Identification of costs and benefits for regional market integration/of a R_ISO based on existing examples  Parallel process to 3rd Package - Workshop participants identified scope for the regional cooperation in the following areas where regional TSO cooperation delivers the greatest benefits to market integration - Access to capacity/Congestion Management at Cross Border Points - Management of capacities (“one-stop-shop”) - Easier access to the systems through Interconnection Point Agreements - Harmonisation of services - Merging of balancing zones to foster wholesale trading - Regional investment planning to remove physical congestion - Roles and responsibilities - Cost / Benefit analysis

9 Outlook Outlook: Next steps after today’s workshop - EFET to evaluate all comments and draft an evaluation and conclusions paper based on the outcomes of the workshop - TSOs are invited to make a proposal (e.g. MoU on cooperation) covering the identified issues, the envisaged structure for cooperation and a time schedule for implementation - RCC to update progress on Regional TSO-cooperation at next IG meeting WITH ALL STAKEHOLDERS in mid-April Forms of Regulatory Cooperation

10 Further comments  TSOs: Main focus: Development of European standards, regional issues only come second