1 Power Exchange – European Experience Tim Greenwood Head of Customer Relations September 30 th, 2009

2 EEX at a glance  The European Energy Exchange AG (EEX) is the leading energy exchange in Continental Europe and operates market platforms for trading in power, natural gas, emissions and coal.  To this end, EEX relies on an open business model which generates higher flexibility, increased market coverage and bigger volumes through targeted spin-offs and partnerships. Through a systematic expansion of co-operations, EEX contributes decisively to the integration of the European energy markets.  EEX holds 50% of the shares in the Paris-based EPEX Spot SE which operates short-term trading in power – the so-called Spot Market – for Germany, France, Austria and Switzerland. German and French power derivatives trading is concentrated within EEX Power Derivatives GmbH, a majority-owned EEX subsidiary based in Leipzig.  Furthermore, EEX offers spot and derivatives trading in natural gas and CO 2 emission rights as well as trading in financial coal futures.  EEX Group also includes European Commodity Clearing AG (ECC), a clearing house which operates throughout Europe and whose range of services comprises clearing and settlement of exchange transactions concluded on EEX and its partner exchanges as well as OTC transactions.

3 Overall 241 trading participants from 22 countries As of 10 September 2009 EPEX Spot SE: 181 members EEX & EEX Power Derivatives: 183 members

4 Federal Cartel Office Exchange supervisory authority BNetzA (D), E-Control(A), BaFin, CFTC (USA), FSA (GB) Exchange Council EU Commission CEER(EU), ERGEG (EU) Market Surveillance (HÜSt) EEX is subject to extensive supervision CRE (F), DTe (NL) (DG Competition, Energy & Transport) AFM (NL), EBK (CH) State of Saxony (SMWA)

5  The Exchange Council is one of the four exchange bodies according to the German Exchange Act in addition to the Management Board of the Exchange, the Sanctions Commitee and the Market Surveillance.  It comprises a total of 24 members adequately representing the various interest groups and business circles.  In addition to the trading participants with a total of 19 members elected from within various groups (see figure), four representatives of associations and one investors’ representative are members of the Exchange Council.  The Exchange Council primarily adopts the rules and regulations of the exchange and the amendments thereto.  Furthermore, it appoints and monitors the Management Board of the Exchange and appoints the head of Market Surveillance. interconntected utilities and trading companies commercial consumers EEX Exchange Council municipal and regional suppliers energy brokers banks and financial service providers

6 ECC’s services Managing Credit Risk Managing Payment and Delivery  Central Counterparty  Clearing Member  Standard Products  Close-out Netting  Margin System  Netting  Standardized Processes (Straight Through Processing)  Central Bank Money  Deliveries via TSO and Registry respectively Clearing Settlement Clearing house

7 2009: Börsen und andere Handelsplätze in Europa für Energie und Energieprodukte

8 EEX and Powernext cooperate in power trading  Approx. 70% of Powernext participants are EEX participants  Approx. 30% of EEX participants are Powernext participants  Price correlation: More than 90 percent

9 Transparency on EEX website

10 Exchange owned data and power plant information

11 Additional transparency information Since 20 November 2007 the following information regarding the own data of the exchange are published on EEX website:  Number of active trading participants on the Spot and Derivatives Market  number of the trading participants broken down both into sellers and buyers and into net-sellers and net-buyers on the Spot market  average share of the five participants in trading (buy and sell side) with the highest turnover per trading participant on the Spot and Derivatives Market (listed both for exchange transactions and for the entire volume including clearing for OTC transactions)  share of the market makers in the total sales on the Derivatives Market for power

12 Admission requirements  Confirmation of equity of minimum EUR 50,000  Declaration of personal reliability and professional qualification (member of management board)  Closure of a clearing agreement with a Clearing Bank which is admitted as Clearing Member by ECC  Closure of a balance area agreement / hub agreement with ECC (required for physical fulfilment)  Technical access to the trading system / trading systems  In the respective company at least one person is required which has passed successfully the examination to spot- and/or derivatives trader on EEX