1. The future of GB-Continent: Interconnection & Electricity Regional Initiative Simon McVeigh France-UK-Ireland Stakeholder Group meeting 4 th July 2008, Sellindge, Kent

2. 2 Interconnection between GB and the continent Norway GB France Belgium Netherlands existing interconnector under construction potential future interconnection

3. 3 Electricity Regional Initiative (ERI) CENTRAL WEST NORTHERN UK & IRELAND SOUTH WEST CENTRAL SOUTH CENTRAL EAST BALTIC South West: France, Portugal, Spain France-UK-Ireland (FUI) Northern: Denmark, Finland, Germany, Norway, Poland, Sweden Central South: Austria, France, Germany, Greece, Italy, Slovenia Baltic:Estonia,Latvia,Lithuania CWE:Benelux,GermanyFrance CEE: Austria, Czech Republic, Germany, Hungary, Germany, Hungary, Poland, Slovakia, Poland, Slovakia, Slovenia Slovenia

4. 4  Customers  Opportunity: capacity – now and in the future  Easy to trade: products, systems, information  Service promise: available, reliable, clarity  Stakeholders  Transparency: while respecting confidentiality  Regulators  Efficient use: in the short-term  Effective capacities: energy security GB-Continent

5. 5  Customers  Opportunity: capacity – now and in the future  Easy to trade: products, systems, information  Service promise: available, reliable, clarity  Stakeholders  Transparency: while respecting confidentiality  Regulators  Efficient use: in the short-term  Effective capacities: energy security GB-Continent

6. 6  Customers  Opportunity: capacity – now and in the future  Easy to trade: products, systems, information  Service promise: available, reliable, clarity  Stakeholders  Transparency: while respecting confidentiality  Regulators  Efficient use: in the short-term  Effective capacities: energy security GB-Continent

7. 7 ERGEG Press Release - 25 June 2008 “Examples of concrete results in the electricity REMs include:  Central West: Plans are in place for “market coupling” on interconnectors by 2009; auction rules to be harmonised; and regional transparency improvements agreed.  Central East: Regional transparency improvements agreed; efforts to move towards a flow-based capacity calculation system; and a common auction office is to be established (near Munich) for capacity allocations.  Central South: Progress with coordinated explicit auctions implemented at the main interconnections points (Italy- Slovenia since Sept. 2007, Italy-Switzerland since January 2008) and further harmonisation sought; market coupling is in focus; transparency work is underway and the creation of a single auction office is being considered.”