Nord Pool Spot our experience in developing a

Nord Pool Spot - our experience in developing a well functioning Nordic power market

Ownership We are owned by the Nordic Transmission System Operators. Statnett SF Svenska Kraftnät Fingrid Oyj Energinet. dk 30% 20% Nord Pool Spot AS

Our function? § Provide a market place for physical power § The central counter party in all trades guaranteeing settlement for trade and anonymity for participants § Organize the physical trade of electricity and the day-ahead market Elspot – the cornerstone of Nordic power trading § Operate the intra day market Elbas § 70% of the total power consumption is traded on the Elspot market § NPS plays a vital role in the Nordic power market representing the market and its participants § Our most valuable assets are credibility and trust

From 2000 to 2007 The trust is proven by successful volume development Volume 2008 Share of consumption § Share of consumpti (prel. ) § (prel. ) 2008 Norway § Norway 61, 4 % § 61, 4 Sweden § Sweden %% § 90, 1 Finland § Finland 50, 2 %% 50, 1 §DK-W DK §§ -W 79, 5 % § 79, 6 §DK-E DK §§ -E Total § Total % % %% § 77, 9 § 70, 1 71, 0% % 297. 6 TWh

European Power Exchanges Overview NORD POOL SPOT APX UK / N 2 EX APX Gielda Energi Belpx Epex Spot OTE PXE EXAA South Pool OMEL GME Opcom 2006 TWh 2007 TWh 2008 TWh 250 291 298 EEX 87 123 146 APX 19 21 25 Power. Next 30 44 52 Nord Pool Spot

Stepwise development 1996 1993 Norway and Sweden Norway Statnett Marked Nord Pool 15 June 1998 Norway, Sweden and Finland Nord Pool 1 October 2000 Norway, Swden, Finland Denmark Nord Pool 1 July 1999 Norge, Sverige, Finland og Jylland/Fyn Nord Pool

Some perspectives on how to develop a successful market

Involve the stakeholders § Keep a close dialogue with market participants in order to create commitment and trust towards the exchange’s business. § Design products and services that are attractive and of value to the market participants’ operations and business § Use the exchange’s power as a representative for the market participants, advocating for lowering entry barriers and promoting changes to the regulatory regime and balancing services § Develop a solid framework for the exchange’s operations together with the market participants § Rulebook, clearing procedures and settlement design of crucial importance to the market participants

Information in a well functioning power market § Information that may impact market pricing of electricity products § Transmission § Generation § Consumption § Information has to be relevant to the needs of a given national or regional market (a noticeable impact on prices) § Publication in a uniform, understandable and timely manner § Transparency needs. vs. market abuse possibilities

Case UK Helsinki, Finland Oslo, Norway - Head office London, Great Britain Stockholm, Sweden Fredericia, Denmark

Thank you for your attention! Marie Thuestad Director Sales Nord Pool Spot AS E-mail: mt@npspot. com