8 February 2007 1

Study

Co-Ordination on Day Ahead Capacity in Bunde/Oude Statenzijl and Ellund

EC-Operators of Implementation GroupERGEG Regional Gas Market North / North-West

Key Operator Contacts“Interconnections, Primary and Secondary Market”

Volker Schippers, E.ON GTAnke Alvermann, BEB

8 February 2007 2

• Background

• Current Situation

• Alternatives

• Proposal

• Way forward

Contents

8 February 2007 3

EFET perceives that

– market structures and limited availability of transport capacity between markets have a significant impact on the traded wholesale markets (hubs)

and proposed that

– TSOs should obtain or reserve capacity for day ahead capacity auctions

– Shippers should be requested to resell unused capacity

First N/NW Stakeholder Group Meeting (slide I)

8 February 2007 4

• Auction Process proposed by EFET

– until 09:00 Shippers place available capacity in the auction

– until 09:30 TSO(s) publish available capacity and its nature (firm / interruptible)

– 09:30 to 10:00 Auction

– before 10:15 TSO(s) communicates results

– Envisaged Start1 April 2007

First N/NW Stakeholder Group Meeting (slide II)

8 February 2007 5

• North /North-West operators develop a study on Co-Ordination on Day Ahead Capacity

• Interconnection Points

• Bunde – Oude Statenzijl (H-gas)

• Ellund

• Operators work out study until end of December 2006

Task defined on second N/NW IG

8 February 2007 6

• Background

• Current Situation

• Alternatives

• Proposal

• Way forward

Contents

8 February 2007 7

• Bunde / Oude Statenzijl (H-gas)

– BEB

– E.ON Gastransport

– Gastransportservices

– Wingas Transport

• Ellund

– BEB

– Dong Energy Pipeline

– E.ON Gastransport

– Energinet.dk

TSOs at the Interconnection Points

8 February 2007 8

GTS BEB E.ON GT Wingas Tr.Offer daily capacity

(firm and interruptible)

Offer capacity on one side of the

border

Offer on-line capacity booking

Maximum implementation lead

time

10 days 10 days 10 days 10 days

Bulletin board for secondary capacity Re-nomination lead

time2 hours 2 hours 2 hours 2 hours

Main Current Conditions:Bunde / Oude Statenzijl (H-gas)

8 February 2007 9

Energinet.dk

BEB DEP E.ON GT

Offer daily capacity (firm and

interruptible)

Offer capacity on one side of the

border

Offer on-line capacity booking

Scheduled for September

2007 Scheduled for

April 2007 Maximum

implementation lead time

10 days 10 days 10 days 10 days

Bulletin board for secondary capacity Scheduled for

Summer 2007 Re-nomination lead

time2 hours 2 hours 2 hours 2 hours

Main Current Conditions: Ellund

8 February 2007 10

• Background

• Current Situation

• Alternatives

• Proposal

• Way forward

Contents

8 February 2007 11

Short Term Capacities

Product Features

Allocation of RevenuesOrganisation

Allocation of Capacities

8 February 2007 12

• Interconnection Points– Bunde / Oude Statenzijl (H-gas)– Ellund

• Entry – Exit Capacity– Separate entry and separate exit capacity– Combined entry-exit capacity

• Type– Firm (primary from TSO)– Firm (secondary from shipper)– Interruptible (primary from TSO)– Interruptible (secondary from shipper)

• Duration– Daily

• Lead time– Day-ahead

Alternative Product Features

Product Features

8 February 2007 13

• Who

– TSOs

• Jointly

• Bilaterally

• Locationally

– Joint Venture

– Energy Exchange

• Platform

– Internet Website

Alternative Forms of Organisation

Organisation

8 February 2007 14

• Allocation of Capacities

– Auction

– Pro-Rata

– FCFS

• Allocation of Revenues

– Depending on the products and specific national / European rules remaining revenues may be

• reimbursed to original capacity holder (shippers or TSO)

• shared between shippers and TSOs

– Platform operator receives (fixed) handling fee

Alternatives of Allocation ofCapacities and Revenues

Allocation ofCapacities

Allocation ofRevenues

8 February 2007 15

• Background

• Current Situation

• Alternatives

• Proposal

• Way forward

Contents

8 February 2007 16

Proposal

• Product features– Location: Bunde / Oude Statenzijl (H-gas) and Ellund– Combined entry and exit capacities– Interruptible capacities offered by TSOs– Duration / Lead time: day ahead daily capacity

• Organisation– TSOs

• Allocation of Capacities– Auction

• Allocation of Revenues– TSOs receive the revenues

8 February 2007 17

• Background

• Current Situation

• Alternatives

• Proposal

• Way forward

Contents

8 February 2007 18

Way Forward

• 9 February 2007

– Discussion on North / North-West stakeholder workshop in Bonn, Germany

• After the Workshop (in case of agreed-upon solution)

– Check of national implementability (national rules / market)

– Development of specification and implementation plan

– Definition of starting date