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How do you see the desired end state of TTF ? A 1: DONG Energy would like to see the following features

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Reactie DONG

Mevr. Kleijn,

Ik weet dat de tijd van reactie is verstreken maar het komt voornamelijk door de vakantie periode die in Denemarken 14 dagen eerder ligt dan in Nederland.

Het is natuurlijk geen excuus.

Doordat de 5 vragen door verschillende disiplines moeten worden beantwoord, gecoordineerd en verzameld en daarna nog door de screen heen moesten zijn er enkele antwoorden uiteindelijk niet op het nivo gekomen om ze op papier aan u toe te zenden.

DONG Energy heeft de onderstaande antwoorden geformuleerd en zal zeker in de toekomst meer accuraat en uitgebreider reageren op uw vragen.

Q 1. How do you see the desired end state of TTF ?

A 1: DONG Energy would like to see the following features : - More active players

- An ending to hourly balancing and to aim for daily balancing - GasTerra to use TTF (within day and to balance the system.)

- TTF should develop to a marketplace where the players can balance their portfolio - both in a domestic and northeuropean perspective, also including L-cal gas

Q 2 :How do you rate the urgency of improving TTF functioning, and to what extent do you believe the market place will solve the issues by itself?

A 2 : DONG Energy rate it as urgent to change the function of hourly balancing. Access to gas quality conversion capacity - or maybe a virtual conversion mechanism - is also urgently needed.

Q 3: Do you see any bottlenecks that have not been mentioned yet? How would you prioritize the bottlenecks to TTF improvement?

A 3 : DONG Energy has the following comments :

- Upgrade existing connections to allowing gas flow in both directions in BBL and Zelzate pipelines.

- Access to public data of available import/export capacities (short term) between NL and G, especially in Emden and Bunde area

- A short term market for transportation capacities could increase the liquidity and functioning of the market. This would need co-operation

with German TSOs

Q 4: In what (additional) ways do you see the virtual and physical gas worlds interact and enhance each other?

A 4. No comments

Question 5: What package would you recommend to accelerate TTF development and why? Please prioritize.

A 5 : Refer to comments under Q 1, 2 and 3

(2)

Hartelijk dank voor uw uitnodiging tot het beantwoorden van uw vragen,

vr.gr.

Regards,

Jaap Tesselaar Managing Director T: +31(0)224.214.854 M: +31(0)6.100.17.266 F: +31(0)224.219.837 E: jates@dongenergy.nl

DONG Energy Markets B.V.

Trade Register: 37112686

Visit Address: de Witte Paal 341, 1742 LE Schagen Postal Address: P.O. Box 281, 1740 AG Schagen The Netherlands

http://www.dongenergy.com

From: Kleijn mw ir R.M. de [ mailto:R.M.deKleijn@nmanet.nl]

Sent: Friday, February 09, 2007 12:55 PM

Subject: TTF development - draft DTe recommendation Dear Sir/Madam,

Last November you indicated your company's willingness to participate in DTe's "reference group" on the topic of TTF development. So far we have held an informal workshop (December 1, 2006) with this group, performed our own research, and conducted multiple one-on-one interviews. The result to date is a draft recommendation what should be done to accelerate the development of TTF.

You have the opportunity to react to this draft recommendation. To facilitate this, the draft document contains a number of questions to which we solicit your feedback. Of course all comments on the document, within or outside the scope of the specific questions, are welcome. We do ask you to keep in mind that solutions should be in line with the Nortwest European context and trends, and that some solutions may have wider impact than on market functioning alone.

Please react by February 23, 2007, at the latest. You can send your response directly back to Maria de Kleijn (r.m.dekleijn@nmanet.nl). If you wish to respond in writing, please refer to reference number 102647.

Your input will be used to finalize our recommendation to the Minister of Economic Affairs on how to accelerate TTF development. This recommendation, together with a document aggregating all responses to this informal consultation, will be made public. We would like to stress the informal character of this consultation. Therefore, please treat the draft document as confidential. Also, no rights may be derived from this draft document, since it does not represent the formal view of the Dutch Competition Authority.

Your feedback and input are crucial to the success of our recommendation. We thank you for your cooperation and look forward to receiving your response.

(3)

With kind regards,

<<070209 accelerating TTF development.pdf>>

Maria de Kleijn

Project Leader Wholesale Monitoring

The Netherlands Office for Energy Regulation

T + 31 70 330 3356

R.m.dekleijn@nmanet.nl

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