1. 1 Cross Border Intraday on the North Italian Borders Interim solution 4th Stakeholder Group Meeting Rome, 15 th May 2012

2. 2 XB ID Interim solution on the North Italian Borders XBID Auction Rules - Forum and consultation In the framework of the implementation of the ID interim solution on North Italian borders, involved TSOs have drafted a dedicated set of rules which defines modalities related to the allocation of ID capacities. The XBID Auction Rules have been:  subject to public consultation from the 17 th February to the 16 th March (15 companies/associations have answered) presented during a forum the 13th March in Rome (100 participants coming from 60 companies) Following the consultation, the XBID Auction Rules have been finalized and forwarded to the NRAs for approval. Additionally, a document gathering all remarks received during the consultation and the TSOs answers has been attached to. CRE, ELCOM and AEEG have approved the XBID Auction Rules. Approval process from the Slovenian and Austrian regulators is still in progress. Go-live has been postponed to June 19 th with June 20 th as first delivery date.

3. 3 XB ID Interim solution on the North Italian Borders Consultation – Remarks and answers synthesis Fifteen (15) companies or associations answered to the consultation of the ID Rules. The main comments raised were the following: 1) Pb with new Timing of daily nominations at 12:45 > interferences with CWE market coupling  TSOs propose to postpone the timing of the entire process of XBID1 for 10’ in order to facilitate the possibility for Market Participants to consider CWE MC results for defining their daily nominations. 2) Cross border traders restrictions > suppression of access to MI1 and no access to MI3  TSOs propose to allow the participation in MI1, MI2 and MI3 to all virtual units (UPV/UCV) related to cross border activities. However, the anticipation of the MI1 cannot be possible so as to have results of MI1 for adjusting daily nomination.

4. 4 XB ID Interim solution on the North Italian Borders Consultation – Remarks and answers synthesis 3) UIOLI Principle > ask for the introduction of UIOSI principle  The UIOLI mechanism has been chosen to facilitate the implementation of an intraday mechanism which is an interim mechanism. Furthermore it ensures that the capacity will be acquired by the participants that really need it for a physical delivery and not for financial optimization. 4) Timing of 1 st XBID auction > ask for a postponement  The timing proposed is a compromise between the requirements of the TSOs and those of the Market Parties, being the only one feasible that allows the bidding on the MI2 that is the last session of the Italian market that covers the whole day The complete list of comments, including the answers of TSOs, will be published on CASC website together with the XBID Auction Rules.

5. 5 EA1XB MGP MI2 Explicit Auction XB ID Submission of bids to the GME Nomination & Matching XBID Schedules Bids selection by GME ATC Evaluation of XBID ATC Day-ahead process MI1 12:00 14:40 Nom. Match. 9:3011:00 15:4515:30 Italian market Day-ahead process Intraday process XBID1 XBID2 8:308:00 Daily Auction Publication of XBID results 15’ 20’ 15’ 13:0013:30 Daily Nomination CAS Matching CBS Matching 16:00 45’ Market not used for XB exchange 45’ Contestation period XB ID Interim solution on the North Italian Borders Day D-1 timings GME will communicate when the new MGP timing will be in operation. Consequently, the postponement of Daily auctions won’t happen necessarilly simultaneously with the start of the intraday mechanism. 12:5513:4013:5514:1014:25 15:10 These in green are new timings incorporating Market Participants comments.

6. 6 EA3XB MI4 ATC MI3 8:15 10:0510:4010:55 Nom. Match. 7:45 16:0012:5012:3512:1511:459:3010:25 0:00 Italian market Day-ahead process Intraday process XBID1 XBID2 24:00 Energy delivery 20’ 15’ 20’ 15’ Explicit Auction XB ID Submission of bids to the GME Nomination & Matching XBID Schedules Bids selection by GME Evaluation of XBID ATC Day-ahead process Publication of XBID results Market not used for XB exchange 45’ Contestation period XB ID Interim solution on the North Italian Borders Day D timings

7. 7 XB ID Interim solution on the North Italian Borders Expected Time Plan until Go Live  PUBLICATION OF THE ID AUCTION RULES: ……………… 18 th May 2012  USERS’ REGISTRATION PROCESS: ……………………….. 21 st May – 13 th June 2012  ON-LINE TRAINING WITH CASC: …………………………… 04 th and 05 th June 2012  GO-LIVE: o For French, Slovenian and Swiss borders the go-live is expected the 19 th June 2012 for the 20 th June 2012 as delivery date. o For Austrian border, the go live is expected middle of December 2012.