1. Vivi Mathiesen Florence Forum, Florence 13 Dec 2010 Third Compliance Monitoring Report

2. 219 th Florence Forum, 13-14 December 2010 Regional and interregional coordination (CM GL point 3) Increased compliance since 2nd Report Progress due to Regional Initiatives Shortcomings with regard to interregional coordination of CM methods Recently launched projects not included

3. 319 th Florence Forum, 13-14 December 2010 Limitation of cross-border capacity (point 1.7 of CM GL) Increased compliance – however unclear interpretation Need to specify information requirements to ensure capacity is not unduly limited

4. 419 th Florence Forum, 13-14 December 2010 Intraday (point 1.9 of CM GL) Higher compliance than 2nd Report Intraday trading 17 of 31 interconnectors Ten concrete intraday projects planned 2011 Coordination of ID trading arrangement – topic for next compliance monitoring

5. 519 th Florence Forum, 13-14 December 2010 Transparency (point 5.5 of CM GL) Higher level of compliance RI: regional transparency monitoring Areas of low compliance Forecast of renewables (wind and solar) Publication of outages grid, generation or consumption Requirements for reporting to be specified

6. 619 th Florence Forum, 13-14 December 2010 Use of congestion income Art. 6.2 of the Regulation Most common use – reduction of tariffs Need clarification on how to verify use of congestion income

7. 719 th Florence Forum, 13-14 December 2010 Recommendations I ERGEG recommends that EC: Clarify provisions – to reduce ambiguity Ensures swift comitology process FG CACM and related Codes as well as comitology guidelines

8. 819 th Florence Forum, 13-14 December 2010 Recommendations II ERGEG recommends Member States: Implementation of EU energy legislation Enforcement of legal framework that supports XB trading Support Regional Initiatives for pan-European market coupling and coordinated congestion management

9. 919 th Florence Forum, 13-14 December 2010 Recommendations III ERGEG requests that TSOs: Fast development of CACM Network Codes Continue committed work within RI Enhance and speed up implementation of transparency as requested in FEDT Ensure documentation of relevant procedures to NRAs

10. 1019 th Florence Forum, 13-14 December 2010 Recommendations IV Regulators are committed to: Continuing to foster and support regional and interregional coordination of capacity allocation and congestion management Ensuring that TSOs document relevant procedures and routines and send to NRA Developing common procedures for compliance monitoring

11. 1119 th Florence Forum, 13-14 December 2010 Thank you for your attention! www.energy-regulators.eu

12. 1219 th Florence Forum, 13-14 December 2010 Methodology ERGEG’s job is foremost coordination of NRA reponses Bilateral and regional checks and quality control of data Based on First and Second Compliance Monitoring Reports ERGEG defined criteria for compliance Consensus about criteria Interpretation of legal provisions Goes further than legal provisions High score indicates compliance Low score does not necessarily indicate non-compliance in a legal sense! BACK-UP