1. FR-UK-IE Regional Initiative Cross-Border Balancing Procurement State of progress SG 7 - 03 December 2008 John Prime - Claude Perret

2. Summary  Main issues stated at last meeting  Interim solution : state of progress  Enduring solution : state of progress

3. Main issues stated at last meeting  BALIT Project (Acronym for “Balancing Inter TSO”)  Launched after the regulators’ approval of the NGET-RTE proposal  Interim solution, based on current BASA  Enduring solution, implementing complete process  Interim solution  BASA contract evolution in progress  The Interim solution will start after new French BM Rules approval by CRE  No practical solution to authorize NGET to formulate bids on the French BM  Target : New Rules should be approved Jan 2009  NB : these new Rules will be convenient also for Enduring solution

4. Main issues stated at last meeting  Enduring solution  NGET and RTE have started preliminary studies  Enhanced planning should be available in Nov 2009  Remuneration of interconnector operators for use of infrastructure needs to be considered

5. Interim solution : state of progress  BASA contract evolution  NG and RTE agreed on required changes  Draft worked out by NG  Ratification by RTE in progress  New French BM Rules  The consultation of stakeholders is over  The target for an approval by CRE in Jan 2009 remains relevant  TSO preparations on target for 01-Feb-09 commencement

6. Enduring solution : state of progress  Technical solution for information exchanges  BALIT platform  Collects TSO to TSO tenders  Aggregates a Merit Order List  Manages the tendering and allocation process  Display results to each participant  Implementation guide for the BALIT Platform  Based on ERRP V2.r0  Worked out by RTE, approved by NG  Invitation to tender for software development  In progress

7. Enduring solution : state of progress  IS modifications  Analysis Phase in progress  Price generation (for each 50 MW bloc)  Sending of offers to BALIT Platform  Integration of offers received from BALIT Platform  Acceptance communication managing  Settlement process  Analysis Phase in progress  Operational process  Being finalised

8. Enduring solution : state of progress  Remaining to be done  Development and coding Phase  Contractual aspects  Revision of BASA  Creation of TSO-TSO contract  Remuneration of interconnector operators  A four parties meeting is scheduled in December  Implementation targeted for November 09