1. MoU Implementation Jill Murray CER 28 th August 2008

2. Background Regulatory Co-ordination highlighted as important issue for GRI Consultation on Issues held in winter 2006 Idea of MoU discussed at Dublin SG in April 2007 MoU Signed by all countries in the NW Region at SG meeting in the Hague on 27 th October 2007

3. Objectives of MoU to progress the development of the single market in accordance with the Directive and Regulation to facilitate co-operation between the Parties in the performance of their regulatory functions to avoid duplication of activities by the Parties to ensure compatibility and where possible harmonisation, between decisions made or other steps taken by the Parties to ensure the proper functioning of the internal gas market as a whole and to avoid undue discrimination between users, shippers and infrastructure operators in the region to provide solutions to cross border issues through working in a co-operative manner and where agreement is not possible to seek consensus by mediation by the RCC

4. Scope of MoU This MoU applies to the regulation of major infrastructure which may have significant influence on the trading and / or transportation of gas in the adjacent markets. Parties will endeavour to provide timely information to other relevant Parties and if necessary consult them on proposed regulation and decisions that could significantly impact on adjacent markets Parties may contact each other on other issues as appropriate or desirable

5. MoU Provisions Regulatory Co-ordination (Article 4) Regulation of Gas Market (Article 5) Sharing Information (Article 6) Consultation (Article 7) Avoidance of Inconsistency of Action (Article 8) Dispute Resolution (Article 10) Guidelines (Article 11)

6. Progress of MoU Implementation DERA developing Information Platform –What information appropriate (new initiatives in region bundled product / CAG Information Sharing –Contact List up-dated in February 2008; Need to keep up to date – platform? –In what circumstances is information sharing important - Work on issues list commenced Status in NRAs –Has MoU been rolled out in NRAs (e.g. OFGEM)