1. Working on investment climate in the NW-region Update By projectleader Investment I1 GRI North-West Investment workstream 29.09.2009

2. Contents 1.Update -Investigating path to enhancing regional Investment Climate -Based on Stockholm workshop 24.09.09 outcomes -Milestones/planning 2.Questions for discussion

3. Regional climate: sharing risks and planning together To build or not to build? Who knows and when? No ‘ready’ answer. Co-ordination seems under way, But no practice is in place For regional cost-sharing of Investments (and its risks). border Shippers TSOs End-consumers ? Innovative solution ?

4. Main direction supported at Stockholm: what ’sticks’ and ’carrots’ do we need? 4 Projects differ (large projects require a very secure process, eg nord stream related flows in EU), – Large investment will happen because of ’nimby’ only once in 5 to 15 years. – This VT helps even more with incremental investments; adress quick and long term wins Clarity on tariff derivation Periodical, centralized´, competitive bidding processes for regional demand – Insight in aggregated shipper demand (as part of investment trigger) Improve risk sharing mechanisms at regional level via 3-fold approach: i) Financial solutions (like eg described in Journal of findings) ii) Commitment Shippers Neighbouring tso’s and regulators and governments In some rare cases, EU fund support iii) Qualitative arguments to support investment (studies) SOS (security of supply) Competition View on readyness to take risk (market growth, flow views)

5. Milestones and progress project so far ? 1.Gathering stakeholder support for work on investment climate (2008) 2.Development of manual on the regulatory investment environment for 9 national frameworks in the region 3.Delivered a Regulatory model for assessing investments 4.Ran a virtual test 5.Ran an experiment on bidding with ‘Tilburg’ 6.Draft Journal of Findings in production 7.Tangible policy advise by end of 2009 5

6. Planning q409 6 29 September RCC/IG updates Friday 2 october telco coregroup 16 october model final and frozen By 16 october first draft policy paper discussed and decided if round 3 to take place Last week October round 3, if any 12 november PB update presentation November: finalize policy advise (by 18.11.2009) 25/26 November at Min. IG/SG policy advise presented December- advise sent to relevant policy makers, signed by executive representatives of stakeholders (eg PB’members)

7. Question(s) for discussion Views on turning outcomes in VT-findings to practical advise ? – E.g. Change to organisational set-up, ideas like common approach to depreciation to shorten stranded asset risks. Resource support for required (legal) national check of potential enhancements (RCC granted support) – I.e. check if proposed ideas are compatible with current law (=quick wins) or require legislative change (=long term wins) 7

8. Background slides

9. Other remarks and decisions on 24.09.09 workshop Significant lessons emerged, JOF and Manual are at large supported – Subject to discussed in workshop No round 3, unless policy advise requires it – 16 october decision by core group, based on core and reference group remarks – describe in JOF the caveats of round 2 – investment triggers will not become more transparent as they are National systems, need to especially improve nra-cooperation in the area of agreeing on common investment trigger in relation to integrated open seasons Fuel price volatility - a point of attention (at high loadfactor of regional transit lines it can be up to 30% of transport price) 9

10. Core group formed, reference group same – status 24.09.09 Core group Old group minus Ariane Kruijtzer (EK/NMa), Martijn van Gemert (EnergieNed/Nuon). New members: EGT, WGT, GUD, BNetzA. Reference group No changes. 10

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