CASC EU SA CASC EU Capacity Allocation Service

CASC. EU SA CASC. EU – Capacity Allocation Service Company 23/11/10 CASC-EU S. A. (R)

CASC – The Company Incorporated on October 1, 2008 - Based in Luxembourg 12 Shareholders (since 10 th of November, 2010) Netherlands, Belgium, France, Italy, Greece, Slovenia, Austria, Switzerland, Germany (3), Luxemburg All are Board Members / CEO of the TSOs • • • Chairman of the Board: Vice Chairman: Chairman of the Audit Committee: Mr Pierre Bornard (RTE) Mr Thomas Karall (APG) Mr Luigi De Francisci (Terna) CASC’s function: o Explicit allocation o Service provider to the TSOs regarding Market coupling o Clearing and settlement towards MPs and congestion rent distribution to the TSOs 23/11/10 CASC-EU S. A. (R) 1

CASC - Services CASC. EU - service company, on behalf of the Transmission System Operators: o Daily operation of services, related to the cross border allocation of transmission capacity, outsourced to CASC • Explicit auctions: Yearly, Monthly, Daily • Fallback options for Market coupling: Shadow auctions (daily explicit auction), Rollback o Acts as a single point to implement and operate services related to the auctioning of power transmission capacity on the common borders o Eases cross-border power exchange and delivery for Market Participants within the borders o Possibility to support the development and testing of standardized systems and rules o Increases liquidity and competition within markets 23/11/10 CASC-EU S. A. (R) 2

Ease for Market Participants can easily register and participate in auctions o One financial guarantee system for all borders o One invoice is issued per month including all expenses o One platform for all auctions – through the EXAU User Interface o One single point of contact o A complete website with all relevant information 23/11/10 CASC-EU S. A. (R) 4

CASC’s assets 23/11/10 CASC-EU S. A. (R) 3

CASC. EU working area France – Germany – Netherlands Belgium – Netherlands France – Belgium Western Denmark – Germany Eastern Denmark – Germany Netherlands – Norway Q 1 2011 Italy – France Italy – Switzerland Italy – Slovenia Italy – Greece Italy – Austria Switzerland – Germany Switzerland - Austria 23/11/10 CASC-EU S. A. (R) 4

Explicit auctions – Registration of Participants, signature of DOA and FA – Calculation of the Offered Capacity based on the values sent by the TSOs (including the re-sales from Y M) – Long Term and Daily Explicit Auction ( eventually as downgraded modes for MC) – Secondary Market (transfers, re-sales and UIOSI) – Capacity Rights Curtailments (based on the values sent by the TSOs) – Programming Authorization to ITRs, CT and TSOs – Invoicing the MPs – Bank and Accounting Interface – Reporting to TSOs – Congestion rent revenue distribution – Customer relationship (first level assistance) – Training – Publications : Auctions spec, Results… – TSOs in charge of: calculation of the ATC, nominations, evolution of the Auctions Rules, relationship with the REGs

EXAU System Integration Market Participant User Interface Bids Transfers Resales Results Participation Agreement ATC Offered Capacity Results TSO REPORTING Capacity Rights Resales Results Participation Agreements Payments Account Reporting CASC. EU EXAU System Payments Accounting Document Auction Spec Offered Capacity Results BANK SAGE Booking and Invoicing WEBSITE CASC-CWE and ETSOVista 8

CASC’s flexibility o Registration – Entitlements per border and direction o Different Products - Yearly Base with & without maintenance periods, Monthly Base / peak / off peak, Daily hourly o Flexible timing of the auctions o Bids - Maximum number of bids limitation , Maximum quantity of bids, Pro-Rata for bids of equal price, Pre-Bidding for auctions to avoid weekend and holiday bidding for traders o Resale - Explicit resale from Yearly to Monthly auctions , Resale into Daily auctions, Different deadlines for different auctions/borders 23/11/10 CASC-EU S. A. (R) 9

CASC’s flexibility o Implicit Use It Or Sell It principles - UIOSI Principle, UIOLI Principle , Valuation of UIOSI using different prices (Market Spread, Daily price) o Curtailment - Capacity Curtailment, Nomination Curtailment, Reason codes for different levels of compensation o Different sets of non-working days & Different implementations of secondary market rules per domain 23/11/10 CASC-EU S. A. (R) 10

Contact details CASC. EU – Capacity Allocation Service Company 2, rue de Bitbourg L-1273 Luxembourg-Hamm Tel: +352 27 62 38 01 Contact@casc. eu www. casc. eu 23/11/10 CASC-EU S. A. (R) 9