1. INTEGRATION PLATFORM FOR FUI REGION November 22th, 2010 Miroslav Hašek Unicorn Systems

2. 2 ▪ Copyright © 2009 Unicorn Systems AGENDA > Unicorn Systems & Damas > FUI Coordination > CEE Coordination > Vision for Integration > Q/A

3. 3 ▪ Copyright © 2009 Unicorn Systems UNICORN SYSTEMS > Largest software house in the Czech Republic > 20 years of experience with ICT > 10 years of experience with TSOs > Market Management System (Damas) in 7 TSOs and ICOs > Coordinated auctions in CEE since 2005 (e-Trace) > Engaged in market coupling in CWE (ECP, EPP projects) > TSO Security Cooperation (11 TSOs, CTDS-System) > Strong technological background > 100+ team ready in TSO business domain

4. 4 ▪ Copyright © 2009 Unicorn Systems DAMAS PLATFORM > Complex market management system for TSO / ICO > Comprehensive support of trading processes of TSO’s and other market players > Currently 6 installations in Europe in live operation > BritNed installation is being launched

5. 5 ▪ Copyright © 2009 Unicorn Systems DAMAS IN FUI REGION > DC Interconnector UK – France (IFA) > Damas implementation for NGIL and RTE > Complex solution – system, infrastructure, hosting, support > Go-live 09/2009 > DC Interconnector UK – The Netherlands > Damas implementation for BritNed > DC Interconnector East – West and Moyle Interconnector > Damas implementation has started for EirGrid > Unification of rules on both interconnectors

6. 6 ▪ Copyright © 2009 Unicorn Systems FUI COORDINATION > Coordination/harmonisation of capacity management on FUI interconnectors may bring advantages > Further integration necessary > Advantages of coordination > Same auction and settlement rules > Same auction products and timing > One portal for customer registration process and data publishing > Synchronized trades across more interconnectors (e.g. linked bids) > Publishing of market data aggregated for FUI region > Coordination will encourage trading and competition to the electricity market > Requested by EU requirements / initiatives

7. 7 ▪ Copyright © 2009 Unicorn Systems CEE COORDINATION > Coordinated NTC-based capacity auctions and scheduling in CEE region > Multilateral coordination, harmonized rules > Linked bids, block bids > Central scheduling > Coordinated flow-based intraday market > Central credit management > Settlement, invoicing > e-Trace (Damas) > Common IT platform > Go-live 04/2005 > Central Alocation Office > Next steps: > Coordinated flow-based auctions > Source-sink scheduling > or Market Coupling

8. VISION FOR INTEGRATION

9. 9 ▪ Copyright © 2009 Unicorn Systems POSSIBLE OPTIONS > Option 1 – Common Integrated Portal (CIP) > Each ICO has own IT solution > Full support of specifics on each IC > CIP used for unification and harmonization > Feasible and efficient in short- and mid-term perspective > Option 2 – One common auction system for FUI region > Promotion of one existing explicit auction systems or procurement of brand new system > Common auction rules expected > Independent auction office might be established

10. 10 ▪ Copyright © 2009 Unicorn Systems RECOMMENDED SOLUTION

11. 11 ▪ Copyright © 2009 Unicorn Systems COMMON INTEGRATED PORTAL

12. 12 ▪ Copyright © 2009 Unicorn Systems COMPATIBILITY > Recommended solution compliant with EU legislature > EU Regulation 714/2009, EU Directive 2003/54/EC > Congestion Management Guidelines > Third Energy Package > Damas compatible with established industrial standards > ENTSO-E > ECAN v4r0, ESS v3r3, EPD,... > SO-SO Implementation Guide > Energy Data Exchange Standard > Unicorn is IT provider for the Energy Communication Platform (ECP) > Data reporting to ENTSO-E Transparency Platform

13. 13 ▪ Copyright © 2009 Unicorn Systems FUTURE MARKET INTEGRATION > The aim of the EU commission is a single European market > Market coupling is a method for an efficient allocation of cross-border capacity > More efficient use of the power system in the region > Convergence or equalization of prices > Improvement of security of supply > Tight cooperation among TSOs and power exchanges > CIP can coexist and be compatible with FUI/NWe intergration and MC introduction

14. 14 ▪ Copyright © 2009 Unicorn Systems TIMESCALES > First stage feasible in 4-6 months: > Depending on complexity > Unicorn‘s added value

15. Q/A

16. Copyright © 2009 Unicorn Systems