1. 3rd Stakeholder Group Meeting 1 February 2007 France-UK-Ireland Electricity REM Roundup and next steps David Halldearn – Head of European Electricity Policy, Ofgem

2. 2 France-UK-Ireland REM – TOPIC Roundup Consultation responses encouraging Congestion Management Balancing Transparency Tariffs – work being progressed Workstreams established and progressing

3. 3 France-UK-Ireland REM – TOPIC Next Steps Balancing* * Actions taken Published minutes

4. 4 France-UK-Ireland REM – TOPIC Congestion Management* ActionWho When Due Status Remove mention of reserve price from IFA rules 2 TSOs / Interconnector operator ASAP Ongoing Submit timetable to regulators regarding: Implementation of firm nomination deadlines for both long term and day-ahead products the implementation of a UIOSI before the D-1 allocation with a phased approach for already allocated long term products TSOs1 st Feb Ongoing Propose an interim solution to allocate capacity unused after the day-ahead nomination deadline, with implementation timetable TSOs1 st May Ongoing Propose an implementation timetable and a feasibility study for a continuous intraday platform TSOsJune Ongoing Provide the probability data to quantify the cost: of offering full firmness of allocated capacity and nominated programs, and of offering compensation at full market price differential in case of curtailments. TSOs1 st Feb Ongoing Provide auction rule harmonisation propositions with indicative implementation timetable TSOs1 st Feb Ongoing *Actions taken Published minutes

5. 5 France-UK-Ireland REM – TOPIC Transparency* * Actions taken Published minutes

6. 6 France-UK-Ireland REM – TOPIC Process and Co-ordination Next Implementation Group (12 February) meeting to focus on: “Process” More project management orientated Project plan to be published early March Co-ordination Between workstreams With wider European initiatives.

7. 7 France-UK-Ireland REM – TOPIC Challenges to come Short Term  Workable proposals from all three workstreams  Implementation of proposals e.g. 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 Medium to Long term Increased interconnector capacity in the region

8. 8 France-UK-Ireland REM – TOPIC Thank You David Halldearn – Director, European affairs