1. 1 page 1 C O U P L E D NWE Day Ahead Project Update FUI IG Mtg – London 13 th September 2010 ENTSO-E Regional Group Northwest Europe C O U P L E D

2. 2 page 2 C O U P L E D NWE Market Coupling Project: Single Price Coupling ENDURING SOLUTION 1.Single Price Coupling with one coordinated matching across the combined NWE region 2.Extendable to all Europe, facilitating the IEM 3.CWE, Nordic and GB from the outset One Coordinated Matching C O U P L E D

3. 3 page 3 C O U P L E D NWE Market Coupling Project: Membership – 13 TSOs C O U P L E D Affärsverket svenska kraftnät, Sweden AMPRION GMBH, Germany Creos Luxembourg S.A., Luxembourg Elia System Operator NV, Belgium EnBW Transportnetze AG, Germany Energinet DK, Denmark Fingrid Oyj, Finland National Grid Electricity Transmission plc, United Kingdom RTE EDF Transport SA, France Statnett SF, Norway TenneT TSO B.V., the Netherlands transpower stromübertragungs gmbh, Germany 50 Hertz Transmission GmbH, Germany

4. 4 page 4 C O U P L E D High Level Project Organisation NWE Regional TSO Steering Group ITVC Project Alignment with European Framework Development AHAG Intraday Project Day Ahead Project TSO Cooperation Project Team plan Team

5. 5 page 5 C O U P L E D NWE Market Coupling Project and Two-tier Approach for Governance Tier 1 Tier 2

6. 6 page 6 C O U P L E D NWE Market Coupling Project and Two-tier Approach for Governance Legally binding governance guideline General principles Roles of different parties Functioning of coupling Legally binding governance guideline General principles Roles of different parties Functioning of coupling Operational arrangement of day-ahead market coupling Operational rules Operational arrangement of day-ahead market coupling Operational rules Stakeholders Consultation Stakeholders Consultation EU Commission Prepares proposal EU Commission Prepares proposal Member States Approval in comitology Member States Approval in comitology NRA Approval NRA Approval Agency Opinion Agency Opinion Member States Designation of PX Adjustment of nat. rules Member States Designation of PX Adjustment of nat. rules TSOsPXs Other relevant legally binding guidelines and network codes Other relevant legally binding guidelines and network codes Primary focus of the project (Solution based on a Service Provision Model) C O U P L E D Tier 1 Tier 2

7. 7 page 7 C O U P L E D Congestion Management Obligation (TSOs) Regulatory Oversight Conceptual Model for Service Provision Coordination of Capacity Allocation Coordinated Matching Activity Operational Tier Governance Framework Service Provision Requirements Price Formation (PXs) C O U P L E D

8. 8 page 8 C O U P L E D Key functional blocks Day Ahead Market Coupling C O U P L E D Coordinated Capacity calculation Coordinated Matching Algorithm Local Market Operation Cross border exchange calculation Cross Border Shipping Coord. ATC Order Books Congestion revenue distribution CR Local Capacity Calculation XB Flows Nomination Prices, net positions Prices,net positions ATC XB Schedules

9. 9 page 9 C O U P L E D (1)Detailed design specifications: High level business processes System architecture Algorithm requirements Performance requirements ( 2)Service provision documents (3) Setup of Contracting Entity (4) Send out of tender (5) Analysis of price quotation(s) (1) Project initiation document (Planning, budget, structure, cost sharing) (2) Main design principles (3) Setup of project governance structure (4) Contractual agreements for project phase Project Initiation Design Phase Implementation Phase Operational Phase (1)Service provision agreement (2)Systems building (3)Testing and acceptance (4)Setup operational governance structure (5)Preparation for launch (1)Daily MC process management (2)Incident management (3)Performance monitoring (4)Change management PROJECT NWE Market Coupling Project: Project Phases and Deliverables

10. 10 page 10 page C O U P L E D Q1/11Q1/12Q4/12Q4/11Q3/11Q2/11Q3/12Q2/12 Implementation Service Provision Agreement Design Joint-TSO entity NWE Market Coupling Project: Draft Project Timeline Operation New regions