1. © 2007Slide 1 www.trac-x.de Solution Outline for Day-ahead Capacity Trading at Interconnection Points Marco Wettig Dublin, April 24th 2007

2. © 2007Slide 2 www.trac-x.de Content – Solution Outline for Day-ahead Capacity 1. Status 2. Proposal 3. Summary

3. © 2007Slide 3 www.trac-x.de Status – What has happened so far?  continuous work in and around “Jour Fixe” meetings  EFET, TSOs, Regulators, Facilitators  fact finding  understanding of other parties positions  various contributions by all participants  agreement on some “principles for platform”  some issues still to be solved  phased approach might be a good idea

4. © 2007Slide 4 www.trac-x.de Status – Agreed principles for platform 1. Launch the pilot a.s.a.p 2. Transparency 3. Simple, secure, web-based and user-friendly 4. Framework of the pilot needs to be extendable to other IPs 5. Reasonable adaptations to current interfaces of shippers for this pilot 6. Fit within the current legislative requirements 7. Maximum efficient allocation of capacity 8. Low barriers for newcomers (shippers) to enter the pilot

5. © 2007Slide 5 www.trac-x.de Status – Overview of possible day-ahead transaction types Assignment Transfer Sub-let Assignment Secondary Capacity Primary Description Nomination: New owner Credit/Invoice: New owner Nomination: New owner Credit/Invoice: Original owner Nomination: Original owner Credit/Invoice: Original owner Nomination: New owner Credit/Invoice: New owner Remarks Similar to primary No change in billing process Additional risk for original owner Sub-nomination process between new and original owner Additional risk for original owner Accelerated TSO process needed

6. © 2007Slide 6 www.trac-x.de 1. Status 2. Proposal 3. Summary Content – Solution Outline for Day-ahead Capacity

7. © 2007Slide 7 www.trac-x.de Proposal – Secondary capacity auction process (I) Shippers TSOs Capacity trading platform platform informs TSOs about capacity transfer shippers nominate quantities shippers place capacity offers and bids platform informs shippers about their auction results preparation of shipper participation in auction daily processone-time process shippers register on platform

8. © 2007Slide 8 www.trac-x.de Proposal – Secondary capacity auction process (II) elements of which may be  registering as shipper  credit assessment / bank guarantees  communication test one-time process platform informs shippers about their auction result platform informs TSOs about capacity transfer platform publishes transparency information daily process until 09:00 until 09:30 09:30 to 10:0010:15 until 14:00 shippers place capacity offers platform bundles and publishes capacities shippers place bids in auction shippers nominate quantities to TSOs

9. © 2007Slide 9 www.trac-x.de Proposal – Primary capacity process (I) Shippers TSOs Capacity trading platform platform informs TSOs about capacity transfer shippers nominate quantities shippers place bids platform informs shippers about their auction results preparation of shipper participation in auction daily processone-time process shippers register on platform TSOs place capacity offers

10. © 2007Slide 10 www.trac-x.de elements of which may be  registering as shipper  credit assessment / bank guarantees  communication test one-time process platform informs shippers about their auction result platform informs TSOs about capacity transfer platform publishes transparency information daily process until 09:00 until 09:30 09:30 to 10:0010:15 until 14:00 TSOs place capacity offers platform bundles and publishes capacities shippers place bids in auction shippers nominate quantities to TSOs Proposal – Primary capacity process (II)

11. © 2007Slide 11 www.trac-x.de 1. Status 2. Proposal 3. Summary Content – Solution Outline for Day-ahead Capacity

12. © 2007Slide 12 www.trac-x.de Summary  Solution based on existing contractual and commercial rules  Reasonable change of TSO processes  Platform serves as facilitator and supports market based processes  Low entry barriers for shippers as existing contractual and commercial rules are retained as far as possible  Scalable solution as TSOs can join in successively  Could be done within reasonable time “start pragmatically and grow as you advance”