1. FUI Stakeholder Meeting BritNed presentation Jan-Paul Dijckmans & Jonathan Maughan 4 November 2009

2. 2 Agenda  The objective of this presentation is to provide the FUI stakeholders with  An update  The roadmap for approaching BritNed’s stakeholders  A high-level overview of BritNed’s product offering

3. 3 BritNed – The Company  A joint venture between National Grid and TenneT Holding  Operated as an independent company  Owner and operator of a HVDC interconnector between Isle of Grain (GB ) and Maasvlakte (NL)  Capacity - continuous rating of 1000 MW (dynamic rating 1200)  Capacity - 100% offered for third-party access  Congestion Management Guidelines & EU Exemption

4. 4 BritNed Timetable 2008  Start of cable production  Start of preparation and construction of 2 converter stations 2009  Installation first 2 campaign of marine cable – on Schedule  Completion civil works – on Schedule 2010  Installation final 2 campaigns of marine cable  Interconnector commissioning 2011, first quarter  BritNed commerially operational (Auctions for capacity likely to be held in late 2010)

5. 5 BritNed…from cable

6. 6 …towards an integrated European Electricity Market CWE region Inhabitants: 175 million Consumption (2005): 1246,8 TWh Production (2005): 1306,5 TWh Installed capacity: 280.000 MW

7. 7 Film

8. 8 Stakeholder Management BritNe d Market operators  Implicit auction  Interface with System and Market Operators in NL and GB NL Customers  Consultation process  Newsletters & seminars  Training & registration  Auction operations Market Parties  Bespoke energy contract for commissioning  Other energy contracts (losses, imbalance) Regulators  Approval access rules  Compliance exemption

9. 9 Auction Proposal EU Exemption –BritNed will offer a blend of implicit and explicit auctions with a duration of no more than 1 year Congestion Management Guidelines –Business rules and Auction systems are being developed that meets the Congestion Management Guidelines and builds on the experiences of IFA Auctions Intra-day Daily SeasonalQuarterlyMonthlyAnnual Hold medium term explicit auctions Hold implicit day ahead auction (and develop backup day ahead explicit auction) Hold a series of intraday explicit auctions

10. 10 Implicit Auctions  The Exemption requires BritNed to offer implicit Auctions for Go-Live and BritNed is working with APX to develop an implicit auction solution for go-live – Q1 2011  BritNed’s strong preference is, through a co-ordinated approach, to implicitly couple the GB market to CWE as  The NL market will implicitly couple to CWE  CWE can provide a potential implicit solution for GB Interconnectors  but as this may not be achievable in this timeframe, BritNed is exploring other alternatives.

11. 11 Consultation  High level milestones  Meet with Regulators Oct/ Nov 2009  BritNed Customer Seminars December 2009  Send Access Rules to Regulators December 2009  Meetings with Regulators January 2010  Consult market on Access Rules February 2010  Final comments from RegulatorsMarch 2010  Finalise Access RulesApril 2010

12. 12 Further Information  For further information on BritNed please refer to our website www.Britned.com  If you would like to talk further on general topics or on potential commissioning arrangements jan-paul.dijckmans@britned.com jonathan.maughan@britned.com