1. 23 September 2004GTE Annual Conference1 Review of the Madrid Forum VIII July 2004 Geert E.H. Joosten GTE President GTE Annual Conference 23-24 September 2004

2. 23 September 2004GTE Annual Conference2 1. Access to storage, ERGEG draft GGPSSO 2. Access to the network, GGP2 3. Entry/Exit systems 4. Calculation of available capacities 5. Interoperability and LNG 6. Way forward Agenda

3. 23 September 2004GTE Annual Conference3 Madrid Forum participants -EU Commission: DGTREN (in the Chair), DG Comp -Member States -CEER and national regulators -Observers: Bulgaria, Croatia, Romania, Norway, Russia, Algeria, Switzerland, Turkey -Gas industry and stakeholders: GTE, EASEE-gas, EFET, Eurogas, Eurelectric, GEODE, IFIEC, CEFIC, OGP

4. 23 September 2004GTE Annual Conference4 General comments - overview -Preparatory Forum, no such concrete results as in September 2003 when GGP2 were achieved -Main item draft GGPSSO, EU Commission stressed objective to come to an agreement at the next Forum in December 2004 -GTE confirmed as crucial actor within the Madrid process -Sentiment of Users critical -CEER strongly stressed the need for further progress towards a single operational EU market

5. 23 September 2004GTE Annual Conference5 1. ERGEG draft GGPSSO GTE comments dated 2 July 2004: - NTPA where market conditions allow - Guidelines should more reflect technical and commercial aspects - Practical approach to timetable, defined deadline for each service and transparency requirement

6. 23 September 2004GTE Annual Conference6 ERGEG draft GGPSSO Forum to CEER: - Take comments into account and continue discussion - Present a new document at Madrid IX - Guidelines effective as from 1 April 2005

7. 23 September 2004GTE Annual Conference7 First compliance report on GGP2 : Positive on progress of all aspects except flexibility, transparency and inter-TSO cooperation CEER concluded Level of compliance higher where regulators are attributed strong competences and powers Need for Gas Regulation 2. GGP2 – CEER 1 st compliance report

8. 23 September 2004GTE Annual Conference8 3. Entry/Exit systems ERGEG monitoring report : +Implementation of entry/exit tariff systems Publication of tariffs -Transparency of tariff calculations Tradability of capacity rights  GTE noted that the 4 shortcomings identified in 2003 still persist, in particular the transit and multiple TSO issues.

9. 23 September 2004GTE Annual Conference9 4. Calculation of available capacity GTE report dated 2 July 2004 well received Forum invited GTE to provide illustration of available capacity calculations on 5 transport routes crossing at least 2 borders GTE initial presentation on UIOLI Forum invited GTE to present further study on UIOLI taking into account the Eurogas and EFET papers and discussions with CEER and other interested parties.

10. 23 September 2004GTE Annual Conference10 5. Interoperability GTE fully supports EASEE-gas Two CBPs agreed in EASEE-gas were endorsed by the Forum: -Harmonisation of Business Rules -Edigas communication protocols GTE urged national authorities to make the necessary legal preparations for implementation of the CBPs

11. 23 September 2004GTE Annual Conference11 6. LNG GTE report on LNG : -Ship Approval Procedures incl. Inspection Guidelines -Initial proposals for Business Rules Keen interest, work to continue

12. 23 September 2004GTE Annual Conference12 7.Way Forward Next Madrid Forum planned in December 2004 All Working Groups to prepare their contributions

13. 23 September 2004GTE Annual Conference13 Way Forward THANKS FOR THE GOOD WORK AND GOOD LUCK WITH THIS JOB!