1. RMC Regional Market Coordination RMC Regional Market Coordination RMC Regional Market Coordination CWE Capacity Allocation Service Company CASC Presentation of the project to CSE IG Milano, 3 June 2008

2. Disclaimer Some elements of the following presentation are extracted from documents approved by the 7 TSOs of CWE. However, this presentation is made in the name of RTE only, and does not commit the other TSOs of CWE. Furthermore, the following presentation is not a CWE project working paper, and presents only some facts and opinions on the CWE project.

4. Background lCentral West Region: France, Netherlands, Belgium, Luxemburg and Germany (part of UCTE-block – Union for the Co-ordination of Transmission of Electricity) èPentalateral Memorandum of Understanding (June 2007)  Signed by TSOs, Regulators, Power Exchanges, Market Parties Platform and Governments  FBMC  Security of Supply  Harmonization of LT explicit auctions èRegional Action Plan by regulators of CWE (February 2007)

5. CASC - CWE C apacity A llocation S ervice C ompany - C entral W est E urope

6. Structure lCASC is a service provider for the TSOs lOne common organisation set up by the TSO’s of the CWE market area to facilitate cross border power markets l7 shareholders lLuxembourg SA, located in Luxembourg city lPossibility for other TSO’s to join the company in order to increase the working area

7. CASC – Scope and Tasks lLong Term explicit auctions: Regional auction office for long-term (yearly) and mid-term (monthly) coordinated explicit auctions in the CWE Region, from Q4 2008 on for 2009, including capacity publications lSecondary Markets for Transmission Rights: Platform for secondary trading markets for transmission rights lCollection and distribution of CWE congestion income (from the auctions and FBMC) lEnvisaged for the future  Day Ahead Market Coupling: Interface between TSOs and Power Exchanges, in a form that has to be agreed between the TSOs and the Power Exchanges of the CWE Region  Facilitation of Intraday cross-border trade

8. Advantages for market participants lAccess to all CWE markets via one portal  One stop shopping lAll relevant information regarding the CWE-market via one website  All information regarding the availability of capacity on one screen lNo (legal / functional / technical) differences anymore  Equal rules on all borders connecting the 5 countries  One IT system  One system of clearing and settlement User friendliness, availability, and security will be as high as possible

9. Back-Up

10. Present situation in CWE region for long term explicit auctions TSO Auction RTE/RWE /EnBW Three existing sets of explicit auction rules:  TSO Auction Office  RTE/RWE/EnBW  Elia/RTE Three existing auction IT systems:  TSO Auction Office  Ariba  RWE Elia/RTE

11. Envisaged future situation for long term explicit auctions CASC CWE  Single set of explicit auction rules  Single explicit auction IT system Marketers will benefit from:  One-stop-shop  Harmonised products

12. TSO Auction RTE/RWE /EnBW Elia/RTE CASC CWE

13. CASC – Daily Operations AAC % reduction AAC Invoices Payment % reduction ATC ACK Notifications Bids Results Custome rs TSO s CASC Contracts and Customer database LT and Daily* Auctions Tool Secondary Market Capacity Curtailment AAC Calculation Settlement TSO’s Reporting Monitoring Web publication Web * If Daily auction is the fallback for FBMC