1. Gas Regional Initiative – North West Region Paris Workshop 11 May 2007 Workshop on Interconnections & Primary Capacity Market Kick-off Meeting on IP 14 A, B, C (Oude Statenzijl; H-Gas) GTS <> BEB; EGT; WTKG

2. 2 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl Map: GTE I. Status Quo GTE map 2005 Former IP # 13A - D

3. 3 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl I. Status Quo GTE map 2006 New IP # 14A - C

4. 4 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl I. Status Quo Availability of Data / Confidentiality Problems (cf. report pages 65ff) Data on Oude Statenzijl GTSEGTWTKGBEB Technical Capacity 2005 confid. for Entry from EGT and WTKG yes partly Utilisation Rates 2005* confid. for Entry from EGT and WTKG yes confid. for Entry partly Rates of Subscription 2007 Most data confid. for BEB, partly for entry from WTKG, exit to EGT yes Amount seized by UIOLI 2005 yes Instructions for adjacent TSOs: Please bring missing data to the meeting. confid. = data labelled (at least partly) confidential *utilisation rates: In the questionnaire it was asked for min/max utilisation rates (flow as percentage of total technical capacity). Delivered by GTS, BEB was the min/max contractual allocation in m³/h and kWh/h. EGT & WTKG delivered physical net flow as percentages (WTKG as percentage of booked firm!))  Therefore, no final statement on existence of physical congestion possible!

5. 5 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl I. Status Quo Main Problems identified in the report (cf. pages 65ff) IssueGTSEGTWTKGBEB Congestion Mismatch of technical capacities At least contractual congestion at all points Utilisation ratesVariation between 2 and 300 % CAMno coordinated CAM, only FCFS Products and booking procedures (e.g. timing) No auctions, no bundled/harmonised products, different booking deadlines and lead time, no coordinated booking CMP No strict and coordinated UIOLI Other... Confidentiality Conf. Suggestions by TSOs Stimulate investments Improve CAC methods implement auctions

6. 6 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl I. Status Quo Booking situation at IP 14A (GTS  EGT) GTS website: No firm entry from EGT available until end of 2012 Until 2008/09/30 19-66% of firm exit to EGT available, thereafter technical capacities mainly confidential, but a substantial amount of firm exit still available EGT website: Until 2007/09/30 no firm entry nor exit capacity available Further data not yet available, due to new calculation of technical capacities in the EGT-system

7. 7 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl I. Status Quo Booking situation at IP 14B (GTS  WTKG) GTS website: No firm entry from Wingas available until end of 2012 Until 2008/09/30 69-89% of firm exit to WTKG available, afterwards technical & booked capacities mainly confidential, but a large amount of firm exit still available WTKG website: Until 2010/03/31 >70% WTKG exit capacity to GTS available 22% entry until 2007/09/30 available, afterwards until 2010/03/31 52% available Similar situation as IP 14A

8. 8 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl I. Status Quo Booking situation at IP 14C (GTS  BEB) GTS website: Until end of 2009 no firm entry capacity from BEB available Until end of Sept. 2009: 58% – 75% firm exit to BEB available BEB website: Until end of 2009 no firm entry nor exit capacity available

9. 9 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl I. Status Quo GTS Entry partly confidential Mismatch of technical capacities EGT net flow max. 53% GTS contractual flow Technical Cap. and maximum utilisation 2005 at IP 14A Contractual Flows Net Flows

10. 10 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl I. Status Quo Mismatch of technical capacities Note: GTS tech. capacity calculated flexibly! Low max. GTS Exit Utilisation (allocation) Technical Cap. and maximum utilisation 2005 at IP 14A Contractual Flows

11. 11 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl I. Status Quo Mismatch of technical capacities GTS partly confidential Full util. in Oct. Variation in balanced flows between GTS/EGT due to Ref. GCV? Technical Cap. and net flow in 2005 at IP 14A

12. 12 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl I. Status Quo GTS Entry capacity confidential GTS Entry utilisation partly confid. No complete evaluation possible Technical Cap. and maximum utilisation 2005 at IP 14B

13. 13 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl I. Status Quo WTKG Entry max. physical utilisation partly confidential and at low level (max. 43%) GTS Exit low max. util. (contractual, not net flow) Mismatch of technical capacities No complete evaluation of flows possible Technical Cap. and maximum utilisation 2005 at IP 14B

14. 14 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl I. Status Quo Technical Cap. and maximum utilisation 2005 at IP 14C Both Con- tractual Flows BEB Entry max. utilisation partly not available (Why?) Mismatch of technical capacity

15. 15 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl I. Status Quo Capacity partly n.a. (Why?) GTS Entry and BEB Exit utilisation (allocation) highly exceeding techn. capacity and diverting BEB remark: physical (balanced) flow shows no physical congestion Technical Cap. and maximum utilisation 2005 at IP 14C

16. 16 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl I. Status Quo BEB 9-12: physical (balanced) flow shows no physical congestion (max. 44% util. in Sept) Data for 2006 BEB  GTS needed Difference in balanced flows between GTS/BEB due to Ref. GCV? Technical Cap. and balanced flow in 2005 at IP 14C

17. 17 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl I. Status Quo: additional detailed information Summary of results: GTS-WTKG (report – double click for full details)

18. 18 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl Summary of results: GTS-E.ON GT (report – double click for full details) I. Status Quo: additional detailed information

19. 19 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl Summary of results: GTS-BEB (report – double click for full details) I. Status Quo: additional detailed information

20. 20 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl II. Implementation Goals: Proposal by BNetzA / DTe Impl. Goal DescriptionReasonRemedies / ToDo‘sDeadline 1 Capacities: Maximise available capacity Promote secondary market Increased capacity availability will facilitate competition. Contractual congestion seems to be the main problem. TSOs: Submit missing data on technical capacity, subscription, flows for (2004), 2005, 2006, in order to facilitate further specification of problems (2 weeks) Explain low utilisation and temporal over-utilisation (4 weeks) Identify possible ways to maximise capacity (4 weeks) Strictly enforce UIOLI Buy-back capacities Ensure that capacity trading platforms are running and interlinked Incumbents: Engage in secondary market Sell back capacities to TSO Newcomers: Place requests for capacity on trading platform Assess situation and inform NRAs NRAs: Ensure legal requirements are upheld Investigate into further options 29 Aug 07 2 Transparency: Resolve transparency / confidentiality issues Transparency is essential TSOs: Comply with all transparency requirements (2 months) Incumbents: Critically question your own need for invoking three-minus NRAs: Critically examine three-minus applications 29 Aug 07 3 New investment and CAM Physical congestion?Planned capacity increase CAM for new capacities 21 Dec 07

21. 21 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl II. Implementation Goals: Proposal by BNetzA / DTe (cont‘d) Impl. Goal DescriptionReasonRemedies / ToDo‘sDeadline 4 Products: Bundle or harmonise products, including harmonisation of booking Competition and trade are being hampered because transporting gas is highly complex. TSOs: Identify scope and limits for establishing a harmonised/bundled framework Coordinate with the goal of facilitating booking procedures, especially with respect to spot markets Shippers: Clearly define what is needed for efficient access on IPs NRAs: Ensure regulatory framework to facilitate efforts by TSOs 11 April 08 (5) Nomination / re- nomination / matching

22. 22 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl II. Implementation Goals: Proposal by TSO(s) [xxx] Impl. GoalDescriptionReasonRemedies / ToDo‘sDeadline 1 29 Aug 07 2 21 Dec 07 3 11 April 08 (4) Instructions for adjacent TSOs: Please fill in the table together with connected TSOs. Do you agree with the findings of the report or are there other experiences? Is there any other issue of importance? Please use the following slides to specify on each implementation goal and its respective remedies.

23. 23 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl II. Implementation Goal: Maximisation of Capacity TSO(s) should present answers to the following questions: Which specific measures you can reasonably implement to improve capacity situation? Reasons for low capacity utilisation rates Role and feasibility of stricter and more frequent application of UIOLI Room for improvements Role of investments Role and feasibility of auctions Can improvements be achieved within a reasonable timeframe?

24. 24 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl II. Implementation Goal: Transparency TSO(s) should present answers to the following questions: which specific measures you can reasonably implement? Role, scope and feasibility of measures of improvement Room for improvement reasonable timeframe

25. 25 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl II. Implementation Goal: Products TSO(s) should present answers to the following questions: which specific measures you can reasonably implement? Role, scope and feasibility of measures of improvement Room for improvement reasonable timeframe

26. 26 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl II. Implementation Goal: xxx TSO(s) should present answers to the following questions: which specific measures you can reasonably implement? Role, scope and feasibility of measures of improvement Room for improvement reasonable timeframe

27. 27 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl II. Implementation Goals: Proposal by Stakeholder(s) [xxx] Impl. GoalDescriptionReasonRemedies/ ToDo‘sDeadline 1 29 Aug 07 2 21 Dec 07 3 11 April 08 (4) Instructions for stakeholders: Please fill in the table (where possible together with other stakeholders). Do you agree with the findings of the report or are there other experiences? Is there any other issue of importance? Where you need additional space for your response, please use extra slides.

28. 28 GRI – NW: Paris Workshop on Interconnections: Primary Market, 11 May 2007 Oude Statenzijl III. Way forward Details on Implementation Goal [1] :Responsibility (TSO1/ TSO2/ EG/ etc.) DeadlineDeliverable (e.g.: Action, report,...) 1.) Short Description of task 1 NRAsOne week before next meeting assess legal situation Including data exchange 2.) Short Description of task 2 TSOsOne week before next meeting provide data on: Technical booked available capacity; nominated contractual and net flows on daily basis 3.) Short Description of task 3 TSOs, EG, stakeholdersOne week before next meeting Proposal with concrete measures Report (early) results to RCC, lead regulators, lead TSOs 5 Sept. 07 Decision on the agenda: detailed next steps and deadlines for implementation goal increase available capacity Instructions for all meeting participants: This table is to be filled in at the meeting. Other tasks: EG: Report outcome of kick-off meeting to RCC by 18 May 07 Next meeting: [15 or 28 june], [hannover], [BEB]