Nord Pool Spot - our experience in developing a well functioning Nordic power market

Ownership We are owned by the Nordic Transmission System Operators. Nord Pool Spot AS Statnett SF 30% Fingrid Oyj 20% Energinet.dk 20% Svenska Kraftnät 30%

Our function?  Provide a market place for physical power  The central counter party in all trades guaranteeing settlement for trade and anonymity for participants  Organize the physical trade of electricity and the day-ahead market Elspot – the cornerstone of Nordic power trading  Operate the intra day market Elbas  70% of the total power consumption is traded on the Elspot market  NPS plays a vital role in the Nordic power market representing the market and its participants  Our most valuable assets are credibility and trust

The trust is proven by successful volume development From 2000 to 2007  Total  71,0 %  DK -- EE  77,9 %  DK -- WW  79,6 %  Finland 50,1 %  Sweden  90,1 %  Norway  61,4 %  (prel.) 2008  Share of consumpti Total 70,1 % DK-E 77,9 % DK-W79,5 % Finland 50,2 % Sweden 90,1 % Norway61,4 % (prel.) 2008 Share of consumption Volume TWh

Overview European Power Exchanges 2006 TWh 2007 TWh 2008 TWh Nord Pool Spot EEX APX PowerNext APX UK / N2EX OMEL Epex Spot Opcom GME NORD POOL SPOT Gielda Energi APX Belpx OTE EXAA South Pool PXE

1993 Norway Statnett Marked 1996 Norway and Sweden Nord Pool 15 June1998 Norway, Sweden and Finland Nord Pool 1 July 1999 Norge, Sverige, Finland og Jylland/Fyn Nord Pool 1 October 2000 Norway, Swden, Finland and Denmark Stepwise development

Some perspectives on how to develop a successful market

Involve the stakeholders  Keep a close dialogue with market participants in order to create commitment and trust towards the exchange’s business.  Design products and services that are attractive and of value to the market participants’ operations and business  Use the exchange’s power as a representative for the market participants, advocating for lowering entry barriers and promoting changes to the regulatory regime and balancing services  Develop a solid framework for the exchange’s operations together with the market participants  Rulebook, clearing procedures and settlement design of crucial importance to the market participants

Information in a well functioning power market  Information that may impact market pricing of electricity products  Transmission  Generation  Consumption  Information has to be relevant to the needs of a given national or regional market (a noticeable impact on prices)  Publication in a uniform, understandable and timely manner  Transparency needs. vs. market abuse possibilities

Case UK Helsinki, FinlandOslo, Norway - Head office Fredericia, Denmark London, Great Britain Stockholm, Sweden

Thank you for your attention! Marie Thuestad Director Sales Nord Pool Spot AS