Report from balancing workshop

Lesley Queripel1 February 2007

© 2004 E.ON 21 April 2023, E.ON UK, Page 2

Summary of meeting

Meeting chaired by David Halldearn

Reported on the congestion management workshop

Intraday is to be dealt with as part of CM workstream

TSOs presented two models for balancing (IG2-3)

High level, conceptual models - detail not fleshed out at this stage

Attempting to reflect the different balancing systems in GB and France

© 2004 E.ON 21 April 2023, E.ON UK, Page 3

Model 1

Reserve provider contracts directly with the neighbouring TSO

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Model 2

Reserve provider contracts directly with its host TSO

TSO contracts with the neighbouring TSO

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Summary of discussions

Model 1 More complex model Host TSO would still need to be notified if RP in its area

provided reserve to neighbouring TSO May be more appropriate to a well developed intraday

market Model 2

Simpler model to operate Some concerns from market participants about

transparency Debate on where value should fall where price

differences between TSO areas

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Way forward

Model 2 generally preferred, if sufficient transparency Issue of where economic benefit falls needs to be

considered TSOs asked to develop model 2 further

Timescales How it could work Impact on market participants

A number of stakeholders offered to input to the process RWE Trading, E.ON UK, EdF Trading, Elexon

Paper to be produced by mid-March Next meeting scheduled for 23 March 2007

Report from balancing workshop

Lesley Queripel1 February 2007