1. EUROPEAN ENERGY MARKET SUMMIT 30 January 2007
France-UK-Ireland REM – Report on progress
David Halldearn – Director, European Affairs
EUROPEAN ENERGY MARKET SUMMIT
30 January 2007

2. Regional Characteristics
GB at centre of region
- 2GW / 0.5GW interconnections
All Ireland market being created (2007)
France involved in multiple regions
So harmonised border interfaces are essential

3. First focus is on ‘interfaces’ between the national markets
Priorities
First focus is on ‘interfaces’ between the national markets
Established priority topics in conjunction with stakeholders:
Congestion Management – implementation of CM Guidelines
Co-ordination of auctions on interconnectors
Balancing markets – reciprocal access
Wholesale market transparency
Transmission tariffs
Longer term might include :
Further investment in interconnectors
Regulatory framework

4. First public written consultation – closed 19 January
Key Achievements
Productive regulator and stakeholder meetings ongoing – 7 RCCs, 6 IGs, 3rd SG on 1 February.
Reserve prices have been removed on the IFA
First public written consultation – closed 19 January
Intraday seen as fundamental requirement
3 Workstreams established to tackle priority topics
Congestion Management - CRE
Balancing – Ofgem
Transparency – CER/Ofreg
Final proposals expected Spring 2007
Tariffication currently being progressed by the regulators

5. Workable proposals from all 3 workstreams
Challenges to come
Workable proposals from all 3 workstreams
Firm proposals on intraday are being developed
Implementation of proposals e.g. intraday / model for reciprocal access to balancing markets
Ensuring these proposals meet regulatory requirements in each country in the region
Not placing unnecessary and costly burdens on TSOs and market participants

6. Keep issues and potential solutions manageable
Remarks
Keep issues and potential solutions manageable
Transparency and openness key
Continued participation of all stakeholders essential
TSO support has been invaluable
All information on this region available at:

7. David Halldearn – Director, European Affairs
Thank You
David Halldearn – Director, European Affairs