1. www.bdew.de BDEW Bundesverband der Energie- und Wasserwirtschaft e.V. German Shipper Position Proposals for improving secondary markets of capacity based on current experience 26.11.2009 Axel Scheuer

2. BDEW Bundesverband der Energie- und Wasserwirtschaft e.V. 26.11.2009 Seite 2 Secondary Markets - Products  Our expectations for secondary markets  Further development of platforms  Aim at increasing capacity trading/ liquidity  Extension of a successful platform to more points  Extension of day-ahead trading to offer combined days  Product Improvements  Improve the range of products  Standardisation (Standard T&C and ownership)  Ability to “slice and dice” primary capacity into secondary capacity ensuring compatibility  Options to trade bundled products (exit plus entry)

3. BDEW Bundesverband der Energie- und Wasserwirtschaft e.V. 26.11.2009 Seite 3 Secondary Marketing - Processes  Process improvement/ offering of secondary capacity  Faster handling (<1 day) ideally electronic trading  Must be bilateral and anonymous  Credit risks to be managed with buyer lists (like the trader list) or clearing mechanisms (e.g. ECC)  Long term capacity trading must be faster and enabled for electronic trading (currently only moderating, ten days implementation)  Open points for discussion  Capacity trading hours consistent with commodity trading  Reduce offering costs/ market reflective tariffs  Alternative fee structures