1. Coordinated Market Coupling for GB

2. 2 Service Provision specified to create a GB Hub with open access to : All GB connected ICs to coordinate XB Capacity All Regional PXs Extendible to new Interconnectors / PXs Virtual Hub

3. NGIL initiated the procurement, and will seek to ensure that the service is able to encompass all existing and future GB interconnectors. Contract Notice issued July 2011 Tenderers shortlisted RfP to be issued early October Tender selection November Procurement Update:

4. 4 Pre-Coupling: Coordinate capacity information for submission into EU Coupling solution Post-Coupling Energy Transactions on PXs Cross Border Nominations to TSOs Virtual Hub

5. The output of the coupling algorithm is net position of each price area, which equates to required energy transactions on each PX hub. Example: flow from GB to France, Net position of GB is a PX Buy, and a France PX Sell. Sells GBFR Sells Buys NP B NP S Shipper buys energy in GB, and then sells the energy in France Flow Shipping: Energy Trades

6. To Balance PX traded position, nominations required to TSOs in order to be balanced in each country. GBFR NP B Interconnector nominations to balance shipper position in each country NP S Shipping: Physical Transfers PX Buy = GB Export FR Import = PX Sell

7. The GB net position is a combination of the net position of each GB PX, therefore a shipper is needed to undertake the energy transactions between the two GB PXs. Sells GBFR Sells Buys NP 2 NP 1 Intra-GB Shipping: Energy Trades NP GB PX 2 PX 1 NP 2 NP GB NP 1

8. AT How the Virtual Hub fits in with the NWE Project GB VH GB2 GB1 FR BE NL DE DK NO SE PO EEFI Infinite Capacity IE

9. NWE Update PX / TSO joint project initiated. CASC appointed by TSOs to undertake key project roles PCR including TSO requirements is the basis for coordinated matching. Re-use of existing systems / agreements where possible. Budgets being prepared. TSOs agree to cover costs of design phase. Cost recovery on future phases to be further discussed.

10. Thank you