ERGEG Northern Europe Regional Initiative –

1. ERGEG Northern Europe Regional Initiative – Welcome to Stakeholder meeting (”Miniforum”) 27th June 2006

2. 1st Northern Europe Miniforum Helsinki, January 2005 • CEER/ERGEG/Commission + Regional focus • ERGEG Electricity Regional Initiative The road to ERI

3. ERI in order to speed up market integration • ERI is an ERGEG initiative backed by Commission and EU politicians (European Council and Energy Councils) • Regulatory authorities role: Catalysts – not legislators! • A continous dynamic process – also between ”Stakeholder Meetings” Some general observations

4. Northern Europe Region- Some basic considerations - • Focus on promoting practical implementation • Be so specific as possible • Limited number of parallel tasks • Stakeholder involvement + not too many meetings  Simple organisational set-up Succes: Integrating competitive markets as quick as possible - independtly of who is the cause of the succes

5. Northern Europe Region - Organisational set-up - • Regional Coordination Committee (RCC): Regulatory authorities + DGTREN + observers: Baltic and Dutch regulators • Continuous stakeholder-involvement - primarily on a national/bilateral basis- with internal associations: ”lead regulator” • ”Implementation groups” on specific topics:Reg.auts. + TSOs + stakeholders ad hoc invited • Multilateral involvemet of stakeholders in ”Stakeholder Meetings”: ”Broad” participation

6. Northern Europe Region Priority topics • Focus of regional initiative:The well functioning of the whole-sale market interface between Nordel-area and Germany/Poland • To deal with now: - Interconnector allocation mechanism and congestion management - ”Merchant” interconnectors - Other interconnectors - Transparency for market-actors • To include in road-map: - Planning and financing of new/strengthened interconnectors- Need for joint intra-day and regulation power markets - Cooperation on integration of major shares of windenergy

7. The purpose of todays Stakeholder Meeting • Open dialogue on how to design the framework for a better integrated and more efficient Norther Europe electricity market • Views on the priorities presented • First concrete input on the work to begin now • First concrete input on further work

8. 10.00 – 10.20 Welcome and short introduction of the Northern Europe Electricity Regional Initiative ByDERA – Finn Dehlbæk Optimizing the use of interconnectors – capacity allocation and congestion management 10.20 – 10.35 Status and challenges. By Northern Europe RCC/DERA – Bente Danielsen 10.35 – 10.50 Open Market Coupling. By BNetzA – Frank-Peter Hansen 10.50 – 11.05 The Kontek Price area, status and future. By Nord Pool Spot – Anders Plejdrup Houmøller 11.05 – 11.45 Prepared presentations of stakeholders + Discussion Transparency for market participants in the Northern Europe whole sale market 11.45 – 12.00 Status and challenges. By Northern Europe RCC/DER – Jan Hansen 12.00 – 12.15 The need for transparency. By Eurelectric - Gunnar Lundberg, Vattenfall AB 12.15 - 12.30 The new system of voluntary transparency - by European Energy Exchange AG – EE - Albert Moser 12.30 – 13.30 Lunch at Restaurant room Mama’s & Papa’s Todays agenda (1)

9. Todays agenda (2) Transparency for market participants in the Northern Europe whole sale market……..continued 13.30 - 14.15 Prepared presentations of stakeholders + Discussion Other priorities of a road-map - Planning and financing of investments in interconnectors - The need for joint intra-day and balancing markets - Cooperation on integration of major shares of wind energy 14.15 – 14.30 Status and challenges. By Northern Europe RCC/DERA – Peter Hoffmann 14.30 – 14.45 Joint Nordic planning of transmission investments. By Nordel – Bente Hagem, Statnett 14.45 – 15.00 The importance of common intra-day markets and balance settlement methods. By EFET - Harmuth Fenn, Vattenfall Trading 15.00 – 15.15 Integration of major shares of wind energy. By Energinet.dk, Per Sørensen, 15.15 – 15.40Coffee break Other priorities of a road-map…………continued 15.40 – 16.10 Prepared presentations of stakeholders + Discussion 16.10 – 16.30Conclusions