CONCLUSIONS Day Ahead Auctions pilot 21 th June 2007 Jour Fixe

1. CONCLUSIONSDay Ahead Auctions pilot 21th June 2007Jour Fixe Version 22 June Including way forward endorsed by RCC on 22 June

2. Key Results • TSOs have succeeded in reducing the implementation lead time from ten days to a maximum of three hours • Agreement between EFET and TSOs on time schedule of a transfer: trading from 9:00-10:00 – processing of transfer by TSO between 10:00-13:00 – nomination by shippers before 14:00 • EFET has reconfirmed their support for an auction as market mechanism • EFET explained that they do see pragmatic advantages of a continuous trading as well for short term solution • APX notes: ‘EFET was neutral on auction but has a preference for a quick and simple solution based on continuous trade’ • EFET have committed to delivering a standardized trading contract by mid Sept 2007; • Legal bottlenecks clear: will provide input for policy makers (re)designing future gas market • Jour Fixe agreed to ask EU Commission for input in order to finalize legal bottlenecks paper. • Based on RCC endorsement of 22 June, legal bottlenecks paper to be published. • Presentations by platform operators have shown that there are no ‘technical/infrastructural’ issues; • Commitment on best effort basis to go live by end of 2007, depending on positive answer to critical issues • Uncertainty on market design (e.g. cleared or un cleared). These issues have an impact on contractual discussions/framework! • Indirect result • The ‘Huberator’ initiative appears to be a spin-off made possible by the efforts of the pilot work group

3. Issues which remain to be solved • German GasNetzV prescribes a price cap on secondary capacity; • EFET sees it as an important threat to the liquidity on the secondary market • Enabler Group members Secondary Market have reservations, but believe these can be overcome • German GasNetzV prescribes a ‘single common platform’, established jointly by the German TSO’s; • A number of German TSOs have established TRAC-X to perform this task; TRAC-X is likely to become a single common platform. • This implies close cooperation between APX and TRAC-X, however their remains uncertainty concerning the costs and willingness. Furthermore APX is struggling to see how this close “co-operation” should work? • APX considers these uncertainties as a major risk factor for their business plan and approval to go ahead • The time span necessary for coordinating the IT communication and contractual arrangements between TSOs and platform operators remains unclear; • Depending on the depth of the product desired • TSOs and platform operators have expressed their commitment to resolving these technicalities in 2007; depending on the depth of discussions needed. This is yet unknown! • Need for reconfirmation from the market that an ‘auction’ is the preferred market mechanism • Other possible alternatives were presented in the EFET letter and the Huberator initiative of 19 June (continuous trading) • Based on results RCC of 22 June, request for confirmation of the auction shall be sent to all stakeholders • APX has presented an hybrid solution combining auctions with continuous trading; TRAC-X presented an auction solution. • Platform operators require feedback from the market on their preference concerning the design variables of the platform and estimate of willingless to buy and sell capacities • Relevant design variables: degree of unbundling of capacities; need for clearing; platform as a central counterparty (impact on need for nomination by platform and anonymity of trading parties) + allocation mechanism • Based on results RCC of 22 June, request for confirmation of the design variables shall be sent to all stakeholders • The platform operators shall submit a letter to the Chair with specifics

4. Way Forwardendorsed by RCC 22 June • 1. RCC including BNetzA reconfirms its commitment to the auction pilot. Commitment from the BnetzA implies maximal flexibility in the application of German legislation concerning the price-cap and the single platform (issue 1+2). • 2. In the case, outcome of further legal work leads to infeasibility of the pilot , the RCC will consider alternatives (if Yes, then only after market consultation) (issue 1+2). • 3. Platform operators will draft a questionnaire concerning the markets’ preference for an auction; the design variables of a platform and buy & offer ambitions of 2ndary capacity by the 30th of June ‘07; DTe will communicate these to the market. The market will be required to answer at latest on the 16th of July (issue 4+5) • 4. Platform operators and TSOs start with the coordination of their IT communication and contractual arrangement as of direct (issue 3) .

5. Timetableendorsed by RCC 22 June • 22-06-’07 RCC meeting • Prior to 30-06-’07 BNetzA, TRAC-X, APX are to discuss clarification of the legal questions; request to be sent to EU commission to clarify ‘single platform’ question • 30-06-’07 Questionnaire pilot specifics to the market by PO and Chair GRI NW • July Start meetings TSOs – PO to solve issues • 16-07-’07 Response from the market on questionnaire (30/7 => new date) • Prior to 16-07-’07 Informal update from the EU Commission on legal question expected (tbc) • Prior to 16-07-’07 Publication of legal analysis paper (tbc; 6 July is aimed at) (verwacht) • 01-08-’07 Platform operators acquire board approval; (16-8 new date) • (APX note:only possible if the board knows on what to decide!) • August ‘07 Meetings TSOs – PO to solve issues (14-8 BNetzA formal answer to APX) • 16-08-’07 Update meeting Jour Fixe in the Hague • 15-09-’07 Final confirmation on pilot specifications and exact date of going liveby PO and TSOs (APX note:this is highly dependable on the acceptance of the EFET standard contract!) • 15-09-’07 Delivery of the standardized contract for transfer of capacity rights by EFET • October ‘07 Scheveningen, presentation roll-out pilot by PO (tbc 22 october) • By 31-12-’07 LIVE, assuming ‘full speed’ on critical issues