/dossier_capacites_fb_minute by Elia NV

BELGIUM-FRANCE INTERCONNECTION SPLIT OF THE CAPACITY BETWEEN THE DIFFERENT TIMEFRAMES

MINUTES OF THE CONSULTATION MEETING 6 MARCH 2007

Presents :

Aurélie Barthelat, Maki Yamane (Air Liquide) Matthys Nijpels, Paul Pottuijt (APX) Michael Hanoy (Arcelor Mittal) Paul Dawson (Barclays Capital) Yves Langer, James Matthys-Donnadieu (Belpex) Christophe Gence-Creux (CRE) Alain Marien, Andreas Tirez, Dominique Woitrin (CREG) Barrie van de Merbel (E.ON Benelux) Kamal Khoury (EDF Trading Ltd) Marcel Cailliau, Philippe De Raedemaeker, Marieke Pieters (Electrabel) Isabelle Chaput (FEDICHEM) Jean-Raymond Rastoul (Gaselys) Hein Knuvers (IMC Energy Trading) Mathieu Pourcel (MLCE) Brieuc Raskin (Morgan Stanley Capital Group) Gerhard Engbersen (NOK) Floris Staal (Nuon) Thomas Ulrich (RWE Trading GmbH) Jean-Pierre Bécret (Solvay) Laurence Cloes, Frank Schoonacker (SPE) Claus Urbanke (Statkraft Markets GmbH) Marc Clément (Tessenderlo Chemie) Franca Heinrici (Vattenfall Trading Services GmbH) Frank Vandenberghe, Pascale Fonck, Cécile Pellegrin, Erik De Schrijver (Elia), Olivier Lavoine, Jean-Gabriel Valentin, Nicolas Barbannaud, Sabine Bourdon (RTE)

1. Introduction Mrs Fonck (Elia) introduces the meeting and sets its objectives : to present the experience gathered during the first year of capacity auctioning on the France-Belgium interconnector, and after the start of the market coupling for daily allocation, and to present proposals on possible schemes to split capacity between different timeframes (year, month, day), both for 2007 and 2008. Mrs Bourdon (RTE) and Mrs Pellegrin present the detailed results of the analyses jointly made by Elia and RTE, and explain the proposals for capacity split in 2007 and 2008 (see in appendix the presentation and the documents). Both for 2007 and 2008, two scenarios are presented, to be discussed in this meeting. The proposed scenarios for 2007 are illustrated in the slides 16 to 21 under the annex 1 of the present document. For 2007, 1300 MW have already been allocated in the yearly auction and will, of course, stay fix for the whole year. The proposed scenarios for 2008 are illustrated in the slides 22 to 28 under the annex 1.

2. Discussions Mr Vandenberghe proposes to organise the discussions in four parts : - factual comments on the first part of the presentation: “analyses and observations”, - discussions concerning the proposals for 2007, - discussions concerning the proposals for 2008, and - discussions around the Financial Transmission Rights. 2.1. Factual comments on the first part of the presentation: “analyses and observations” A participant asks precisions on the RTE/Elia assumption that the market needs were not encountered in the current scheme. Elia and RTE first remind that their objective is not to maximise perceived congestion income. RTE and Elia are indeed submitted to the regulation and the possible income resulting from congestion is, in the current regulatory practice, flowing back to the market. The mission of RTE and Elia is to ensure a good market functioning, which passes through, among other things, a convergence of prices between markets with more liquidity and less volatility on the spot market. The objective of the TSOs is to implement mechanisms that meet the needs of all market actors. A participant points out that the influence of the phase shifters installation on the total available capacity is not mentioned in the study, though he assumes it could have an impact. The question of the power reserved for “loop flows” is also addressed. Another participant asks if extra physical capacity on the France-Belgium border will be installed in the coming years.

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Elia states that the phase shifters installation is in its final stage. The phase shifters will among others help to manage the “loop flows”. The status on the phase shifter development and their impact on the total available capacity will be addressed during the meeting of the Elia Users Group in June. The impact of these phase shifters is an element to take into consideration for 2008. RTE explains that the “Moulaine-Aubange” project for an additional line should increase the capacity from 2012 on. A smaller impact would also be available in 2010. A participant notices that, though the lack of harmonization between the different interconnections has been pointed out by RTE and Elia, no plan regarding the collaboration on the Northern border with Tennet (TSO in the Netherlands) has been addressed in the presentation. Elia and RTE explain that discussions with Tennet are taking place. The joint discussion on both borders (France-Belgium and Belgium-Netherlands) is however more difficult because five TSOs are then involved (RTE, Tennet, Elia and the two German TSOs neighbouring TenneT). All these TSOs are involved in regional discussions, including also the GermanyFrance interconnection. Elia explains the assumptions taken for the simulation realized to evaluate the impact of the capacity on price convergence (slides 11 & 12 under annex 1) : the tri-lateral market coupling has been re-run with the same bids and available capacities for the period between 22/11/06 and 30/12/06, changing only the daily available capacity from France to Belgium. A participant notes that the bids would probably have been different if a different capacity had been announced. Another participant points out that the warm winter could also be one of the reasons why the price convergence has worked so well up to now. Elia and RTE underline that there is, for them, no doubt that a high capacity combined with the market coupling mechanism leads to a clear price convergence. 2.2. Proposals for 2007 and conclusion As first point, participants ask when the new split rules could be implemented. It is agreed that the retained scenario should be implemented as soon as possible but could reasonably only be implemented from the May monthly allocation on. Starting the discussion, several participants (traders) express their preference for the scenario 1, as it is important for them to have always a non-zero monthly capacity to assure the existence of this important price indicator. Also, on the whole year, in average, the daily capacity is higher in scenario 1 than in scenario 2. Another participant however reminds that his preference would be in favor of maximizing the long term available capacity to create market visibility on the price. The confidence for the good working of the market and/or capacity resales should be sufficient to reduce the spot price spread. A participant reacts to this intervention to note that this is not seen in the effective auction results.

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In complement, Elia points out that this assumption supposes that there is no market power and that a perfect competitive market exists. RTE notices that a good market signal is also given by an optimal functioning of the market coupling, for which a sufficient available capacity is needed. A participant confirms that, as for the monthly allocation, a daily price indicator is also necessary and that, therefore, the daily allocation absolutely needs a sufficient minimum available capacity. A participant (representing Belgian industrial electricity consumers) asks for considering a third scenario, proposing 0 MW for the monthly allocation. Another participant points out that to get a monthly price indicator, which seems important for some participants, a monthly capacity of 5MW would be sufficient. The consumers agree to keep a monthly price signal but, as the market coupling allows the best use of the capacity, ask that a maximum should be given to the daily allocation. For example, a minimum of 100 MW could be reserved to the monthly auction and all the rest given to the daily allocation. The Belgian regulator (CREG) asks what is the level of the capacity released, until now, for the daily allocation, by the secondary market. Elia shows the figure and explains that there has been, since the beginning of this mechanism in January 2007, very few participants, and that some of them use it only during off-peak hours. At this stage, it is therefore too soon to make any conclusion. This will have to be taken into account for the discussions for 2008. In complement, the importance of the transparency of available capacity is pointed out by one participant. The TSOs confirm their understanding of this need and explain that one of the purposes of the present consultation is to create transparency on the way the capacity is split between the different timeframes. Therefore, it is important that a method is fixed today, to be implemented in the remainder of 2007. The need to know, as soon as possible, how the capacity will be spitted is confirmed by a participant. This part of the discussions is closed by the jointly definition of an agreed proposal. This proposal, written on the board during the meeting, is outlined under chapter 4 of this document. The French regulator (CRE) asks if it is possible to let a few days to the market actors not present today to give additional comments. It is agreed that RTE and Elia will within the next ten days: -

publish the minutes of this consultation,

consider additional comments from the market actors that were not present today, without modifying the outcome of the proposal for 2007,

address the proposal for 2007 (as included in chapter 4) to the regulators.

The proposed scenario, if accepted by the regulators, will be implemented from the monthly allocation of May 2007 on. The monthly allocations of April will be based on the present published values of available capacity.

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2.3. Open discussion for 2008 The phase shifters implementation, potential increase of capacity on the borders, expected developments on regional markets and harmonization, as well as a longer experience with the market coupling and with the secondary market should be taken into account for the definition of the spit rules for 2008. However, there is no major opposition from the participants against a possible reduction of the available yearly capacity. A participant reminds that, for the consumers, the yearly and daily capacity allocations are the important ones. Indeed, the yearly capacity is used to set bilateral contract up with foreign companies. That’s the reason why this participant considers that the yearly capacity should have an “obligatory use” character. A “netting” between the allocated capacities in both directions (France to Belgium and Belgium to France) could then also be done. The traders are not convinced by any capacity that would be “locked” by an “obligatory use”. Only big portfolio companies could possibly take this risk. There would therefore be no market. The question of European legislation is also asked. Elia points out that the “obligatory use for yearly capacity” is a product of a different type that the one existing for the moment. For the netting, Elia already mentioned that the positive impact would be rarely observed. RTE also asks what would be the benefit of this constraint and notes the optionality of the capacity is then moved to the energy purchase contract. In conclusion of these discussions, it’s agreed that another consultation meeting will be planned by the TSOs in Autumn 2007, to define the way to split the capacity between the different timeframes for 2008. By then, the TSOs should have more advanced analyses and observations on the impact of the summer 2007, the working of the secondary market and the possible impact of the phase shifters. One other important element will be the status of the work engaged by DTe for the capacity allocation and repartition mechanisms at the BelgiumNetherlands border and of the regional discussions. 2.4. Opinion of the assembly on the Financial Transmission Rights As proposed by the TSOs, some discussions around the Financial Transmission Rights take place. There is no fundamental reaction against this mechanism but the needs of more explanations and of a careful approach are formulated by the participants. To give all his trust in one unique market, even having more means, supposing perfect market and competition seems indeed risky to some participants. It’s specified that the Financial Transmission Rights in question would be “sold” by the TSOs at the level of the real available capacity, at the difference of the CFDs used in the Nordic countries. A participant says that implementing “Use-it-or-sell-it” principle would be a good first step in the direction of FTR.

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3. Proposals for 2007 In conclusion of the discussions, following rules were defined to split the capacity between the different timeframes for the end of 2007, starting on with the calculation of the monthly capacity for May 2007. From France to Belgium : An amended scenario 1 is agreed with following characteristics : -

Among the 1700 MW that are guaranteed in 2007 from France to Belgium, 1300 MW have already been allocated in the yearly auctions; when possible, a minimum of 100 MW will be dedicated to the monthly auction and a minimum of 400 MW to the daily allocation by market coupling; if these 500 MW minimum capacities could not be respected, the difference will be split between: 25% to the monthly capacity and 75% to the daily capacity, respecting the total minimum capacity of 1700 MW; furthermore, from the complementary volume calculated each month above these first 500 MW, 25% would be allocated to the monthly auction and 75% to the daily allocation by market coupling, this complementary volume being calculated before the integration of the resales of yearly capacities to the monthly auctions, in the framework of the secondary capacity market.

Concretely, this means the following repartition depending on the following specific monthly NTC in the direction France to Belgium: Monthly NTC 1700 1900 2100 2300

Yearly ATC 1300 1300 1300 1300

Monthly ATC 75 125 175 225

Minimum Daily ATC 325 475 625 775

Y+M ATC (%) 81 % 75 % 70 % 66 %

Minimum Daily ATC (%) 19 % 25 % 30 % 34 %

From Belgium to France : Scenario 1 is agreed : -

Among the 600 MW that are guaranteed in 2007 from Belgium to France, 400 MW have already been allocated in the yearly auctions; a minimum of 100 MW of the remaining guaranteed capacity will be dedicated to the monthly auction and a minimum of 100 MW to the daily allocation by market coupling; from the complementary volume calculated each month, 50% would be allocated to the monthly auction and 50% to the daily allocation by market coupling, this complementary volume being calculated before the integration of the resales of yearly capacities to the monthly auctions, in the framework of the secondary capacity market.

Concretely, this means the following repartition depending on the following specific monthly NTC in the direction Belgium to France:

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Monthly NTC 600 800 1000

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Yearly ATC 400 400 400

Monthly ATC 100 200 300

Minimum Daily ATC 100 200 300

Y+M (%) 83 % 75 % 70 %

ATC Minimum ATC (%) 17 % 25 % 30 %

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Annexe : Presentations Slide 1

RTE

ÂŠ RTE(EDF)-CN2i 2002

Belgium-France Interconnection

Split of the capacity between the different timeframes Consultation of 6th of March 2007

Slide 2

RTE

ÂŠ RTE(ED F)-CN 2i 200 2

Agenda

z Introduction

z Analyses and observations (2006)

z Proposals

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Slide 3

Introduction

RTE

z A first year of experience on auctions on the FB interconnection with: ¾ FB: 1700 MW guaranteed all year long : 1300 in yearly auction and 400 in monthly auctions. ¾ BF : 800 MW allocated in yearly auction. ¾ FB-BF : available capacity allocated at the earliest timeframe, out of a minimum reservation for the daily allocation.

z Several elements have now changed : ¾ One year of experience on auctions ¾ Modification of european legislation ¾ Creation of the Belgian power exchange and trilateral coupling with France and The Netherlands ¾ Now that the mechanisms are in place and harmonised, we can focus on more specific issues 3

Slide 4

Agenda

RTE

z Introduction

z Analyses and observations (2006) ¾Availability and split of capacity ¾Auction results ¾Market coupling results and simulations

z Proposals

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Slide 5

Analyses and observations

RTE

Availability and split of capacity On the France-Belgium interconnection (F->B)

On the Belgium-Netherlands interconnection (B->NL)

4000 MW 3500 3000

minimum daily capacity

2500 2000 1500

monthly allocation (minimum 400 MW)

1000 year allocation (1300 MW)

500 0

/2 12

/2 11

/2 10

/2 09

/2 08

/2 07

/2 06

/2 05

/2 04

/2 03

/2 02

/2 01

⇒ Capacity repartition between the different interconnections and between the different products (for F->B) is far from being harmonised

Slide 6

Analyses and observations

RTE

Availability and split of capacity z If we had applied the same repartition on FB interconnection as on BNL interconnection : B => NL

In %

F => B

Yearly

328 MW

26 %

442 MW

Monthly

453 MW

361 %

612

Daily minimum

475 MW

38 %

646

Total

1256 MW

100 %

1700 MW

z The values actually proposed were quite different on the FB interconnection : average

year 51%

month 24%

day 25% 6

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Slide 7 #

Analyses and observations

RTE

Auction results => The split between the different timeframes does not seem to correspond to the market needs. Without Belpex

Prices (€/MWh) Jan-06

Feb-06

Mar-06

Apr-06

May-06

Jun-06

Jul-06

Aug-06

Sep-06

Oct-06

Nov-06

Dec-06

Year

0.76

Month

0.22

0.31

7.51

8.00

7.50

2.25

3.62

6.14

4.88

8.25

2.53

Day (weighted average)

0.01

0.45

1.01

3.50

1.52

4.20

3.57

2.94

5.56

8.49

Year

0.11

Month

0.35

0.41

0.33

0.25

0.26

0.12

0.20

0.10

Day (weighted average)

0.03

0.26

0.10

0.00

0.01

Jan-06

Feb-06

Mar-06

Apr-06

May-06

Jun-06

Jul-06

Aug-06

Sep-06

Oct-06

Nov-06

Dec-06

From France to Belgium

From Belgium to France

Volumes (MW)

From France to Belgium Year

1,298

Month

1,450

849

500

400

450

399

400

550

750

Day (average)

1,458

1,600

1,604

1,302

962

919

361

363

536

543

443

Year

799

Month

520

400

300

100

200

1,047

1,055

1,087

1,404

1,283

1,416

1,067

1,301

1,199

1,196

1,150

From Belgium to France

Day (average)

Slide 8

Analyses and observations

RTE

Market coupling results : price convergence Novem ber 2006

Dece mbe r 2006

3 ,2 4 %

0,6 7%

3 6 ,11%

3 2 ,8 7%

FR = BE = NL

2 4 ,06 % F R = BE = NL

FR = BE

F R = BE

BE = NL Deco up led p rices

6 1,16 %

14 ,11%

BE = NL De co up le d p rices

2 7,78 %

January 2007 (01/01/07 - 26/01/07)

Peak 8h-20h (22/11/06 - 28/02/07)

0,8 0 %

0,76%

5,93 %

14,39%

18,9 1%

FR = BE = NL FR = BE

FR = B E= NL FR = B E B E= NL

74 ,36 %

Dec o u ple d pr ic e s

27,61%

57,24%

BE = NL Decoupled prices

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Slide 9

Analyses and observations

RTE

ÂŠ RTE(ED F)-CN 2i 200 2

Market coupling results : Available and used daily capacity z Convergence thanks to a high availability of daily capacity z Some volumes came from resales on secondary market started on January -> experience to be consolidated 3000

2500

2000

D a ily A T C D a ily n o m in a tio n O u t o f re sa le s

1500

1000

500

Slide 10

Analyses and observations

RTE

ÂŠ RTE(ED F)-CN 2i 200 2

Market coupling results : Evolution of daily capacity during summer months z Available daily capacity in the summer is much lower 1400

MW 1200

France -> Belgique Belgique -> Pays Bas

1000 800 600 400 200

01 /0 6 08 /0 6 15 /0 6 22 /0 6 29 /0 6 06 /0 7 13 /0 7 20 /0 7 27 /0 7 03 /0 8 10 /0 8 17 /0 8 24 /0 8 31 /0 8 07 /0 9 14 /0 9 21 /0 9 28 /0 9 05 /1 0 12 /1 0 19 /1 0 26 /1 0

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Slide 11 #

Analyses and observations

RTE

Market coupling results : Impact of capacity on price convergence (simulation) z The level of integration of the markets grows progressively with the increase of capacity from France to Belgium 100% 90% 80% 70% 60%

Pfr<>Pbe<>Pnl Pfr<>Pbe=Pnl

50%

Pfr=Pbe<>Pnl

40%

Pfr=Pbe=Pnl

30% 20% 10% 0% ATCf r-br = 100

ATCfr-br = 200

ATCfr-br = 400

ATCf r-br init .

(ATCfr-br init = real data)

Slide 12 #

Analyses and observations

RTE

Market coupling results : Impact of capacity on price convergence (simulation) z This reduction impacts prices in the different markets : ¾ Impact on average prices during the peak hours ATCfr-be = 100 ATCfr-be = 200 ATCfr-be = 400 ATCfr-be init.

Average(Pfr) 51.12 51.37 52.15 53.10

Average(Pbe) 77.14 72.77 66.50 59.79

Average(Pnl) 77.17 72.82 67.53 62.70

ATCfr-be = 100 ATCfr-be = 200 ATCfr-be = 400 ATCfr-be init.

Spread fr-be -26.02 -21.40 -14.35 -6.69

Spread be-nl -0.03 -0.05 -1.03 -2.91

Spread fr-be -1.59 -1.09 -0.31 0.72

Spread be-nl 0.06 0.01 -0.09 -0.60

¾ Impact on average prices during the off-peak hours ATCfr-be = 100 ATCfr-be = 200 ATCfr-be = 400 ATCfr-be init.

Average(Pfr) 32.88 33.00 33.20 33.43

Average(Pbe) 34.47 34.08 33.51 32.71

Average(Pnl) 34.41 34.08 33.61 33.31

ATCfr-be = 100 ATCfr-be = 200 ATCfr-be = 400 ATCfr-be init.

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Slide 13

Analyses and observations

RTE

Conclusions from these analyses : z Capacity repartition between the different interconnections is far from being harmonised. z The split of capacities between the different timeframes seems not to correspond to the market needs. z Price convergence between the coupled markets highly depends on the level of available capacity. z The available capacity is reduced in summer months => risk of divergence of the prices between the markets with the present splitting rules.

Slide 14

Agenda

RTE

z Introduction

z Analyses and observations (2006)

z Proposals ¾Basic principles ¾Proposals for 2007 ¾Proposals for 2008 ¾Further developments

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Slide 15

Proposals

RTE

Basic principles : z Maintaining the principle of guaranteeing a certain volume of capacity all year long without prejudice of the way it is splitted between the different timeframes. z Assuring the transparency by adapted publications.

z Splitting: ¾ The guaranteed volume ¾ The complementary volume calculated each month (The split being applied before integration of the capacities resold on the secondary market). 15

Slide 16

Proposals

RTE

Proposals for 2007 (F->B) : z 1300 MW have already been allocated in the yearly auction -> 400 MW are guaranteed for the other timeframes (monthly and/or daily)

z Scenario 1 : guaranteed volume and complementary volume splitted 25% M / 75 % D

z Scenario 2: 500 MW reserved (when possible) for D and complementary splitted 75% M / 25 % D 16

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Slide 17

Proposals

RTE

Proposals for 2007 (F->B) : illustration z Scenario 1 Monthly NTC

Yearly ATC

Monthly ATC

Minimum Daily ATC

Y+M ATC (%)

Minimum Daily ATC (%)

1700

1300

100

300

82 %

18 %

1900

1300

150

450

76 %

24 %

2100

1300

200

600

71 %

29 %

2300

1300

250

750

67 %

33 %

Slide 18

Proposals

RTE

Proposals for 2007 (F->B) : illustration z Scenario 2 Monthly NTC

Yearly ATC

Monthly ATC

Minimum Daily ATC

Y+M ATC (%)

Minimum Daily ATC (%)

1700

1300

400

76 %

24 %

1900

1300

525

72 %

28 %

2100

1300

225

575

73 %

28 %

2300

1300

375

625

73 %

27 %

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Slide 19

Proposals

RTE

Proposals for 2007 (F->B) : z 600 MW can be guaranteed all year long : ¾ 400 MW have already been allocated in the yearly auctions ¾ 200 MW can be guaranteed for the other timeframes (monthly and/or daily)

z Scenario 1 : guaranteed volume and complementary volume splitted 50% M / 50 % D

z Scenario 2: 200 MW reserved for D and complementary splitted 75% M / 25 % D

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Slide 20

Proposals

RTE

Proposals for 2007 (B->F) : illustration z Scenario 1 Monthly NTC

Yearly ATC

Monthly ATC

Minimum Daily ATC

Y+M ATC (%)

Minimum Daily ATC (%)

600

400

100

83 %

17 %

800

400

200

75 %

25 %

1000

400

300

70 %

30 %

Slide 21

Proposals

RTE

Proposals for 2007 (B->F) : illustration z Scenario 2 Monthly NTC

Yearly ATC

Monthly ATC

Minimum Daily ATC

Y+M ATC (%)

Minimum Daily ATC (%)

600

400

200

67 %

33 %

800

400

150

250

69 %

31 %

1000

400

300

70 %

30 %

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Slide 22

RTE

ÂŠ RTE(ED F)-CN 2i 200 2

Proposals

Proposals for 2008 : z Guaranteed volume known and published by the end of 2007

z To be defined after a first year of experience of market coupling (in particular during summer months) and of capacity secondary market

z In a regional perspective (Cf. works in the Regional Coordination Committee)

Slide 23

RTE

ÂŠ RTE(ED F)-CN 2i 200 2

Proposals

Proposals for 2008 (F->B) : z Elia and RTE propose to allocate a lower volume in the yearly auction F->B (e.g. 1000 MW instead of 1300 MW)

z Scenario 1 : guaranteed volume and complementary volume splitted (1/3) M / (2/3) D

z Scenario 2: guaranteed volume splitted (100 MW) M / (500 MW) D and complementary volume splitted 75% M / 25% D

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Slide 24

Proposals

RTE

Proposals for 2008 (F->B) : illustration z Scenario 1, with for example a yearly capacity of 1000 MW Monthly NTC

Yearly ATC

Monthly ATC

Minimum Daily ATC

Y+M ATC (%)

Minimum Daily ATC (%)

1700

1000

233

467

73 %

27 %

1900

1000

300

600

68 %

32 %

2100

1000

367

733

65 %

35 %

2300

1000

433

867

62 %

38 %

Slide 25

Proposals

RTE

Proposals for 2008 (F->B) : illustration z Scenario 2, with for example a yearly capacity of 1000 MW Monthly NTC

Yearly ATC

Monthly ATC

Minimum Daily ATC

Y+M ATC (%)

Minimum Daily ATC (%)

1700

1000

175

525

69 %

31 %

1900

1000

325

575

70 %

30 %

2100

1000

475

625

70 %

30 %

2300

1000

625

675

71 %

29 %

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Slide 26

Proposals

RTE

Proposals for 2008 (B->F) : z Scenario 1 : ¾ 400 MW would be allocated for the yearly allocation ¾ guaranteed volume and complementary volume splitted (1/3) M / (2/3) D

z Scenario 2: ¾ Elia and RTE propose to allocate a lower volume in the yearly auction B->F (e.g. 300 MW instead of 400 MW) ¾ guaranteed volume splitted (100 MW) M / (200 MW) D and complementary volume splitted 75% M / 25% D

Slide 27

Proposals

RTE

Proposals for 2008 (B->F) : illustration z Scenario 1 Monthly NTC

Yearly ATC

Monthly ATC

Minimum Daily ATC

Y+M ATC (%)

Minimum Daily ATC (%)

600

400

133

78 %

22 %

800

400

133

267

67 %

33 %

1000

400

200

400

60 %

40 %

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Slide 28

Proposals

RTE

ÂŠ RTE(ED F)-CN 2i 200 2

Proposals for 2008 (B->F) : illustration z Scenario 2, with for example a yearly capacity of 300 MW Monthly NTC

Yearly ATC

Monthly ATC

Minimum Daily ATC

Y+M ATC (%)

Minimum Daily ATC (%)

600

300

100

200

67 %

33 %

800

300

250

69 %

31 %

1000

300

400

300

70 %

30 %

_____________________________________________________________________Slide 29

Proposals

RTE

ÂŠ RTE(ED F)-CN 2i 200 2

Further developments : z What are your opinions on Financial Transmission Rights ?

Thank you for your attention

06/03/07

FR-BE Interconnection : Split of the capacity between the different timeframes

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Slide 30

RTE

Annexes (Slides non repris ou en réserve)

Slide 31

RTE

Analyses and observations

Use of yearly and monthly capacity (UIOLI) z Depends on the period in the year (higher when the available capacity is higher)

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FR-BE Interconnection : Split of the capacity between the different timeframes

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Slide 32

Analyses and observations

RTE

Market coupling results : price convergence NL - F Price difference before and after MC

22:00 20:00 18:00 16:00 14:00 12:00 Hours 10:00 08:00 06:00 04:00 02:00 5 6 7 42 2 3 4 5 6 7 43 2 3 4 5 6 7 44 2 3 4 5 6 7 45 2 3 4 5 6 7 46 2 3 4 5 6 7 47 2 3 4 5 6 7 48 2 3 4 5 6 7 49 2 3 4 5 6 7 50 2 3 4 5 6 7 51 2 3 4 5 6 7 52 2 3 4 5 6 7

00:00 Weeks / Days

-40--30

-30--20

-20--10

-10-0

0-10

10-20

20-30

30-40

40-50

50-60

60-70

Slide 33

Analyses and observations

RTE

Market coupling results : price convergence Période du 22/11 au 30/11/2006

Période du 01/12 au 29/12/2006 100

260

Prix moyen (€/MWH) :

240

PWX : 44,05602 BELPEX : 44,27835 APX : 45,51769

PWX : 41,957 BELPEX : 54,62768 APX : 58,39328

220

200

160

PRIX en €/MWh

180

140 120 100

80 60

40 20 0

0 1

Prix PWX

Prix BELPEX

Prix APX

Prix PWX

Période du 01/01 au 31/01/2007

Prix BELPEX

Prix APX

Période du 01/02 au 28/02/2007 60

80 Prix moyen (€/MWH) :

Prix moyen (€/MWH) :

PWX : 34,34332 BELPEX : 34,75622 APX : 35,83575

PWX : 30,38049 BELPEX : 30,37855 APX : 31,38351

PRIX en €/MWh

20 20 10

0 1

Prix PWX

06/03/07

Prix BELPEX

Prix APX

Prix PWX

Prix BELPEX

Prix APX

FR-BE Interconnection : Split of the capacity between the different timeframes

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Slide 34

Auction results

RTE

Prices (€/MWh) Jan-06

Feb-06

Mar-06

Apr-06

May-06

Jun-06

Jul-06

Aug-06

Sep-06

Oct-06

Nov-06

Dec-06

Jan-07

Feb-07

Mar-07

From France to Belgium Year

0.76

2.06

Month

0.22

0.31

7.51

8.00

7.50

2.25

3.62

6.14

4.88

8.25

2.53

0.92

0.60

0.44

Day (weighted average)

0.01

0.45

1.01

3.50

1.52

4.20

3.57

2.94

5.56

8.49

From Belgium to France Year

0.11

0.25

Month

0.35

0.41

0.33

0.25

0.26

0.12

0.20

0.10

0.77

0.15

0.27

Day (weighted average)

0.03

0.26

0.10

0.00

0.01

Jan-06

Feb-06

Mar-06

Apr-06

May-06

Jun-06

Jul-06

Aug-06

Sep-06

Oct-06

Nov-06

Dec-06

Jan-07

Feb-07

Mar-07

Year

1,298

1,299

Month

1,450

849

500

400

450

399

400

550

750

400

Day (average)

1,458

1,600

1,604

1,302

962

919

361

363

536

543

443

Volumes (MW)

From France to Belgium

From Belgium to France Year

799

400

Month

520

400

300

100

200

400

100

1,047

1,055

1,087

1,404

1,283

1,416

1,067

1,301

1,199

1,196

1,150

Day (average)

Slide 35

RTE

Secondary markets

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