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Enron Mail |
---------------------- Forwarded by Richard Shapiro/NA/Enron on 06/08/2001=
=20 10:05 PM --------------------------- Peter Styles@ECT 06/01/2001 04:58 AM To: Brendan Devlin/EU/Enron@Enron cc: Richard Shapiro/NA/Enron@Enron=20 Subject: EFET draft security of supply paper Take a look at attachment below for guidance in any discussion with Ristori= =20 next Wednesday re Bush energy policy statement and comparative aspects of E= C=20 green paper on sec. of supply. To remind you of what Loyola said on CNN=20 yesterday: - Agrees with need to re-evaluate role of nuclear plus future investment i= n=20 it . - Disagrees with weight given to supply side and indigenous sources,=20 compared with demand side and fuel diversity (also from external sources?) - Disagrees with exclusion of climate change considerations.=20 ---------------------- Forwarded by Peter Styles/LON/ECT on 06/01/2001 10:2= 5=20 AM --------------------------- brian.samuel@txu-europe.com@txu-europe.com on 04/23/2001 02:31:45 PM To: "EFET Secretariat" <secretariat@efet.org< cc: peter.styles@enron.com=20 Subject: EWG - security of supply paper Jan, please find a revised draft of the SoS paper following discussions wit= h Peter. I would be grateful if you could circulate it to the members of the electricity working group for comment by 30th April. Likewise could you als= o forward it to Ian Wood. (See attached file: efetsos.doc) Thanks Brian ~~~~~~~~~~~~~~~~~~~~~ DISCLAIMER ~~~~~~~~~~~~~~~~~~~~~ This E-mail is private and confidential and may be covered by legal professional privilege. It is therefore only intended for the addressee(s). If you are not one of those persons you must not read, copy, store, disclose, use or distribute its contents. Please also contact the sender immediately and delete the original. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ - efetsos.doc ---------------------- Forwarded by Richard Shapiro/NA/Enron on 06/08/2001= =20 10:05 PM --------------------------- From: Bruno Gaillard/Enron@EUEnronXGate on 06/01/2001 07:07 PM GDT To: Richard Shapiro/NA/Enron@Enron cc: =20 Subject: Background Information France Electricity Background The Continental European electricity market is developing from an integrate= d=20 monopoly business to a competitive market. A segment of electricity users n= ow=20 have the right to choose their supplier from a range of marketers. The=20 emergence of new marketers and generators has created the demand for price= =20 risk management solutions and has encouraged the development of a traded=20 wholesale market. Following the adoption of the EU Electricity Directive in= =20 December 1996, member states were obliged to transpose the directive into= =20 national legislation opening electricity markets to competition by February= =20 1999. The directive sets out a three-tiered approach to the liberalisation of=20 electricity supply markets. Stage one entered into effect on 19 February=20 1997, and calls for the opening of 22% of national markets, based on the=20 average community share of electricity consumed by end customers using more= =20 than 40 GWh per year. The degree of opening will increase over six years by= =20 lowering the community consumption threshold to 20 GWh in 2000 (27% market= =20 opening) and to 9 GWh in 2003 (32-33% market opening). Distributor access i= s=20 a matter for each member state. The implementation of a new directive,=20 expected in 2002, will improve the conditions for a liberalized market. At present, the level of compliance with the directive varies between membe= r=20 states. The EU countries farthest along the process of liberalisation are= =20 Germany, Austria, Spain and the Netherlands. Switzerland, although it is no= t=20 an EU member state, is integral to market developments. France, although=20 having chosen to comply with the minimum requirements of the directive, has= =20 proven to open up their market more than expected. =20 Current Market EDF is the dominant electricity producer in France, the largest power=20 producer in the world with 475TWh generated in 2000, and the largest=20 exporter in Europe (net exports reached 71 TWh in 2000). Power generation = in=20 France is mainly nuclear (70%), but also hydro (20%), while conventional=20 thermal generation represents 10%. EDF is a vertically integrated company= =20 with services and products in generation (92%), supply (?%), transmission a= nd=20 distribution (95%). Finally, this historical supplier is a State Entity; th= e=20 French State owns EDF=01,s capital. A few Independent Power Producers (IPP= ) are=20 also active in the market, such as Snet (6.4TWh, coal-fired), and CNR (16TW= h,=20 hydro). Other smaller IPPs are commercially active but most must sell their= =20 production to EDF under a regulated tariff.=20 More than 100 distribution companies are active through a concession regime= =20 in their local distribution area. Few, however, are of a significant size= =20 (less than a dozen have sales of over 400 GWhs), or have eligible customers= =20 in their concession areas. The French System Operator (RTE) was created on 1 July 2000 and is a=20 sub-division of EDF, although it is unbundled in terms of management and=20 accounting. A postage stamp tariff has been implemented under the=20 transitional regime, which varies according to the voltage used and is base= d=20 on a matrix (Summer/Winter, Peak/Off-Peak). Users have to contract for thei= r=20 maximum transmission capacity. Imbalances are settled under a published=20 tariff, which introduces high charges for imbalances beyond a 10% tolerance= =20 level and 5MW.=20 A three-year framework contract (e.g., by way of a Master Agreement with a= =20 minimum term of three years) is required for eligible customers, but=20 eligibles are free to deal for shorter maturity transactions within such a= =20 three-year contractual framework. =20 Although the criteria for eligibility is per site, and eligible customers= =20 have to contract transmission for each site, RTE has created balancing=20 responsibility contracts (contrats de Responsable d'Equilibre) which compel= s=20 the aggregation of imbalance charges for different eligible sites within an= =20 equilibrium perimeter defined with RTE. Imbalances are settled under a=20 published tariff which charges a heavy penalty for any imbalance beyond a 1= 0%=20 tolerance level or 5MW.=20 Even though we are currently under a transitional regime in France, the=20 ability to trade power already exists. Optimisation can be found through=20 real-time arbitrage offered by the flexibility of the industrial process, t= he=20 availability of market prices and optional structures. The establishment of= =20 balancing responsibility contracts has created the basic conditions for an= =20 effective power trading market in France, and this through the exchange of= =20 blocks from one perimeter to another. Blocs are only exchangeable on=20 day-ahead bases but intra-day procedures are expected to be implemented. Al= l=20 transactions are currently based on bilateral physical contracts.=20 The establishment of this framework has contributed to an increasing number= =20 of players for trading, imports, exports and transit; we are confident that= =20 the French power market will develop rapidly. Enron Capital & Trade=20 Resources Limited ("ECTRL") is a balancing responsible actor in France and= =20 closed the first physical power transaction in France early 2000, and was t= he=20 very first new entrant to trade power (buy/sell) in France late 2000. =20 Future Developments France's size and geographical position will make it a natural hub for=20 trading on the Continent. It is Europe's second largest electricity market,= =20 with net consumption (including industrial on-site consumption) totalling= =20 over 400 TWh in 1999. The increase of physical trading, envisaged capacity= =20 release by EDF, and creation of future market mechanism will contribute to= =20 the further development of the market. Both a balancing market and a spot exchange market are expected to be=20 implemented by end 2001. Players in the balancing market will propose put a= nd=20 call options, exercised by RTE according to its own portfolio of contacts= =20 (producer, consumer) and providing it with physical balancing capacity. The= =20 balancing market will also show referenced market prices for balancing=20 services. =20 Some of the spot market volume is expected to be operated by ParisBourse.= =20 However, due to the dominant position of EDF, the limited number of active= =20 IPPs, existing restrictions for trading for authorised producers in France,= =20 and the lack of transparency with regard to current rules for allocation of= =20 cross-border capacity and attribution of congestion costs, we believe that= =20 the conditions for the creation of an effective spot power market in France= =20 are not yet fully met.=20 Recently, the European Commission has asked EDF to auction 6,000MW of virtu= al=20 capacity through VPP auctions starting in September 2001, representing abou= t=20 30% of the market for French eligible industrials This will further=20 contribute to increase liquidity.=20 Regulatory Environment The goal of Directive 96/92/EC concerning the internal market in electricit= y=20 is to obtain a cheaper but secure electricity supply by introducing and=20 gradually expanding competition while maintaining industry competitiveness = in=20 the face of price decreases. France has transposed the directive, however= =20 certain imperfection with regards to non-discriminatory access and the leve= l=20 of liberalisation still exist.=20 The French Electricity law was passed on 10 February 2000, a year later th= an=20 required by the EU, establishing a transitional regime for third party acce= ss=20 (TPA). Several application decrees still have to be passed, including=20 transportation tariffs on the electric grid to eligible customers. The=20 current threshold for eligibility is 16GWh (net of auto-consumption) per ye= ar=20 and per site, and represents about 600 eligible clients and 1,200 sites.=20 Eligibility for distribution companies is currently limited to the eligible= =20 consumption of customers located in their concession areas. The French powe= r=20 market is effectively open to some competition, and about 60 eligible=20 industrials have so far switched totally or partly from the historical=20 supplier. The eligibility threshold will be reduced to 9GWh per site by=20 direct application of the EU Directive by Feb. 2003, as the French governme= nt=20 declined a quicker opening of the power market. The two main authorities, which oversee the industry, are the CRE (Commissi= on=20 de Regulation de l'Electricit,) is the official regulatory body and the=20 ministry of industry. The CRE is responsible to insure that RTE provides fo= r=20 non-discriminatory access on to the grid and will be issuing transportation= =20 tariffs. The Ministry is responsible for providing generation licenses for= =20 IPPs and for determining eligibility issues. =20 RTE is implementing new capacity allocation procedures on the UK, Italy and= =20 Spain interconnectors. On the remaining borders, capacity is currently=20 allocated on a first-come-first served basis rule, and congestion fees are= =20 levied at the margin, which favours long-term contracts and historical=20 players. In addition, there is currently some lack of transparency with=20 regards to RTE real-time data on the capacity available/used for exports an= d=20 imports. However an intra-day market is now effective for transits, imports= =20 and exports. The first come first serve allocation rule on border capacity= =20 is likely to be changed by end 2001. In addition, the CRE is likely to=20 request RTE to release additional data in the months to come. =20 New IPPs have to be authorised through auctions or through direct decision = of=20 the Ministry of Industry, the main route for authorisation. Authorised IPPs= =20 in France are limited by Decree to buying for resale to eligible customers = a=20 maximum of buy for resale to eligible customers a volume equivalent to 20% = of=20 the installed capacity, including long term contracts. Although the=20 interpretation of this law is unclear, a recent statement by M. Tuot,=20 Director General of the CRE, implies that these restrictions only apply to= =20 French authorised producers and thus not to foreign-based energy companies = or=20 other non-producing entities. Thus, these restrictions do not apply to ECTR= L,=20 as we are not registered in France. In addition, French IPPs are free to= =20 sell and export their production. Eligible customers, who are physically connected to the Grid, have to=20 contract for transmission vis-.-vis RTE (Contrat Made). Traders, such as=20 ECTRL, are not required to have such a transmission contract, as they do no= t=20 consume the power they purchase. Only a balancing responsibility contract= =20 coupled with grid access contracts (import, export, and/or transit) are=20 required by RTE. =20 A new Decree is expected to be passed by Summer 2001, setting up new=20 conditions for transmission, transits and exports under a permanent regime.= =20 Imports, which are allocated on a pro-rata basis, are free of transmission= =20 charges. =20 A network code is currently under discussion between market players and=20 RTE. =20 Market Conventions A range of wholesale electricity products are currently traded in France. = =20 Peak and baseload day-ahead, week-ahead, monthly, quaterly, and yearly=20 products are traded. Peak products follow the German convention (12 hour= =20 peaks on weekdays, 08h00-20h00). Contract sizes are typically 25MW or 50MW= . Gate closure for scheduling imports, exports and transits is 14h00 Paris=20 time. Gate closure for scheduling "echanges de blocs" is 16h00 Paris time. Other: The Gas Market A transitional regime was implemented on 10 August 2000 by direct applicati= on=20 of the EU Directive, thus establishing regulated TPA for sites whose=20 consumption is over 25 million cubic meters p.a. The eligibility threshold= =20 will be reduced to 15million cubic meters in 2003, and 5 million cubic mete= rs=20 in 2008. No gas law has been passed yet (forecasted for mid 2002), and it i= s=20 expected that the transitional regime for gas in France will last until end= =20 2002. A zonal/distance-related tariff was published on 13 July 2000 by=20 GdF-Transportation. A permanent entry/exit tariff structure is likely to be= =20 developed for 2003. Charges for imbalances are expensive and access to=20 storage is restricted. GdF-Trading, however, has published conditions for= =20 balancing services.=20 There is only one trading Hub for France located at the French/Belgian bord= er=20 (Blaregnies/TaisniSres). Due to the distance-related nature of the=20 transportation tariff, competitive TPA is limited to eligible sites which a= re=20 located not too far (less than about 250Km) from the French/Belgian border.= =20 The main imports into France are for high cal gas, and GdF has published th= e=20 conditions for high cal/low cal gas swaps. As there is not yet a gas law in France (a =01+Projet de Loi=01, was approv= ed on=20 17th May 2000) transposing the EU gas directive into domestic legislation,= =20 the Regulatory Commission has not been appointed to date, and the official= =20 regulatory body remains the Ministry of Industry. =20 Although current conditions do not facilitate full requirement supply to=20 customers from new entrants, it is already possible to optimise gas supply= =20 through import of blocs for part or full supply. ECTRL was the first new=20 entrant to supply gas at the French border, and more recently into France.= =20 ECTRL's cumulative volume of gas trades so far totals 550 million cubic=20 meters.=20 The above represents only Enron's and its affiliates views' and, accordingl= y,=20 neither Enron nor any of its affiliates is providing any advice to you in t= he=20 above information. You are not entitled to rely on any of the above=20 information and you are advised to take such other independent advice, as y= ou=20 may deem necessary in respect of the matters referred to above. =20 -----Original Message----- From: Brod, Simon =20 Sent: 25 May 2001 17:31 To: Gaillard, Bruno Cc: de Gaulle, Pierre; Brun, Raphael; Davies, Philip; Duvauchelle, Antoine;= =20 Sankey, Ross Subject: RE: Background Information France/Final Draft My suggested paragraph on market conventions: A range of wholesale electricity products are currently traded in France. = =20 Peak and baseload day-ahead, week-ahead, monthly, quaterly, and yearly=20 products are traded. Peak products follow the German convention (12 hour= =20 peaks on weekdays, 08h00-20h00). Contract sizes are typically 25MW or 50MW= . Gate closure for scheduling imports, exports and transits is 14h00 Paris=20 time. Gate closure for scheduling "echanges de blocs" is 16h00 Paris time. Simon From: Bruno Gaillard/Enron@EUEnronXGate on 25/05/2001 15:36 To: Pierre de Gaulle/LON/ECT@ECT, Raphael Brun/LON/ECT@ECT, Simon=20 Brod/LON/ECT@ECT, Philip Davies/Enron@EUEnronXGate, Antoine=20 Duvauchelle/Enron@EUEnronXGate cc: Ross Sankey/LON/ECT@ECT=20 Subject: RE: Background Information France/Final Draft Below please find a revised version of the document. One element that is=20 still missing and that should be completed by the traders is the=20 "conventions" by possibly adding gate closure information, peak vs. off-pea= k,=20 and other relevant information. Bruno Updated May 2001. Background The Continental European electricity market is developing from an integrate= d=20 monopoly business to a competitive market. A segment of electricity users n= ow=20 have the right to choose their supplier from a range of marketers. The=20 emergence of new marketers and generators has created the demand for price= =20 risk management solutions and has encouraged the development of a traded=20 wholesale market. Following the adoption of the EU Electricity Directive in= =20 December 1996, member states were obliged to transpose the directive into= =20 national legislation opening electricity markets to competition by February= =20 1999. The directive sets out a three-tiered approach to the liberalisation of=20 electricity supply markets. Stage one entered into effect on 19 February=20 1997, and calls for the opening of 22% of national markets, based on the=20 average community share of electricity consumed by end customers using more= =20 than 40 GWh per year. The degree of opening will increase over six years by= =20 lowering the community consumption threshold to 20 GWh in 2000 (27% market= =20 opening) and to 9 GWh in 2003 (32-33% market opening). Distributor access i= s=20 a matter for each member state. The implementation of a new directive,=20 expected in 2002, will improve the conditions for a liberalized market. At present, the level of compliance with the directive varies between membe= r=20 states. The EU countries farthest along the process of liberalisation are= =20 Germany, Austria, Spain and the Netherlands. Switzerland, although it is no= t=20 an EU member state, is integral to market developments. France, although=20 having chosen to comply with the minimum requirements of the directive, has= =20 proven to open up their market more than expected. =20 Current Market EDF is the dominant electricity producer in France, the largest power=20 producer in the world with 475TWh generated in 2000, and the largest=20 exporter in Europe (net exports reached 71 TWh in 2000). Power generation = in=20 France is mainly nuclear (70%), but also hydro (20%), while conventional=20 thermal generation represents 10%. EDF is a vertically integrated company= =20 with services and products in generation (92%), supply (?%), transmission a= nd=20 distribution (95%). Finally, this historical supplier is a State Entity; th= e=20 French State owns EDF=01,s capital. A few Independent Power Producers (IPP= ) are=20 also active in the market, such as Snet (6.4TWh, coal-fired), and CNR (16TW= h,=20 hydro). Other smaller IPPs are commercially active but most must sell their= =20 production to EDF under a regulated tariff.=20 More than 100 distribution companies are active through a concession regime= =20 in their local distribution area. Few, however, are of a significant size= =20 (less than a dozen have sales of over 400 GWhs), or have eligible customers= =20 in their concession areas. The French System Operator (RTE) was created on 1 July 2000 and is a=20 sub-division of EDF, although it is unbundled in terms of management and=20 accounting. A postage stamp tariff has been implemented under the=20 transitional regime, which varies according to the voltage used and is base= d=20 on a matrix (Summer/Winter, Peak/Off-Peak). Users have to contract for thei= r=20 maximum transmission capacity. Imbalances are settled under a published=20 tariff, which introduces high charges for imbalances beyond a 10% tolerance= =20 level and 5MW.=20 A three-year framework contract (e.g., by way of a Master Agreement with a= =20 minimum term of three years) is required for eligible customers, but=20 eligibles are free to deal for shorter maturity transactions within such a= =20 three-year contractual framework. =20 Although the criteria for eligibility is per site, and eligible customers= =20 have to contract transmission for each site, RTE has created balancing=20 responsibility contracts (contrats de Responsable d'Equilibre) which compel= s=20 the aggregation of imbalance charges for different eligible sites within an= =20 equilibrium perimeter defined with RTE. Imbalances are settled under a=20 published tariff which charges a heavy penalty for any imbalance beyond a 1= 0%=20 tolerance level or 5MW.=20 Even though we are currently under a transitional regime in France, the=20 ability to trade power already exists. Optimisation can be found through=20 real-time arbitrage offered by the flexibility of the industrial process, t= he=20 availability of market prices and optional structures. The establishment of= =20 balancing responsibility contracts has created the basic conditions for an= =20 effective power trading market in France, and this through the exchange of= =20 blocks from one perimeter to another. Blocs are only exchangeable on=20 day-ahead bases but intra-day procedures are expected to be implemented. Al= l=20 transactions are currently based on bilateral physical contracts.=20 The establishment of this framework has contributed to an increasing number= =20 of players for trading, imports, exports and transit; we are confident that= =20 the French power market will develop rapidly. Enron Capital & Trade=20 Resources Limited ("ECTRL") is a balancing responsible actor in France and= =20 closed the first physical power transaction in France early 2000, and was t= he=20 very first new entrant to trade power (buy/sell) in France late 2000. =20 Future Developments << OLE Object: Picture (Metafile) <<=20 France's size and geographical position will make it a natural hub for=20 trading on the Continent. It is Europe's second largest electricity market,= =20 with net consumption (including industrial on-site consumption) totalling= =20 over 400 TWh in 1999. The increase of physical trading, envisaged capacity= =20 release by EDF, and creation of future market mechanism will contribute to= =20 the further development of the market. Both a balancing market and a spot exchange market are expected to be=20 implemented by end 2001. Players in the balancing market will propose put a= nd=20 call options, exercised by RTE according to its own portfolio of contacts= =20 (producer, consumer) and providing it with physical balancing capacity. The= =20 balancing market will also show referenced market prices for balancing=20 services. =20 Some of the spot market volume is expected to be operated by ParisBourse.= =20 However, due to the dominant position of EDF, the limited number of active= =20 IPPs, existing restrictions for trading for authorised producers in France,= =20 and the lack of transparency with regard to current rules for allocation of= =20 cross-border capacity and attribution of congestion costs, we believe that= =20 the conditions for the creation of an effective spot power market in France= =20 are not yet fully met.=20 Recently, the European Commission has asked EDF to auction 6,000MW of virtu= al=20 capacity through VPP auctions starting in September 2001, representing abou= t=20 30% of the market for French eligible industrials This will further=20 contribute to increase liquidity.=20 Regulatory Environment << OLE Object: Picture (Metafile) <<=20 The goal of Directive 96/92/EC concerning the internal market in electricit= y=20 is to obtain a cheaper but secure electricity supply by introducing and=20 gradually expanding competition while maintaining industry competitiveness = in=20 the face of price decreases. France has transposed the directive, however= =20 certain imperfection with regards to non-discriminatory access and the leve= l=20 of liberalisation still exist.=20 The French Electricity law was passed on 10 February 2000, a year later th= an=20 required by the EU, establishing a transitional regime for third party acce= ss=20 (TPA). Several application decrees still have to be passed, including=20 transportation tariffs on the electric grid to eligible customers. The=20 current threshold for eligibility is 16GWh (net of auto-consumption) per ye= ar=20 and per site, and represents about 600 eligible clients and 1,200 sites.=20 Eligibility for distribution companies is currently limited to the eligible= =20 consumption of customers located in their concession areas. The French powe= r=20 market is effectively open to some competition, and about 60 eligible=20 industrials have so far switched totally or partly from the historical=20 supplier. The eligibility threshold will be reduced to 9GWh per site by=20 direct application of the EU Directive by Feb. 2003, as the French governme= nt=20 declined a quicker opening of the power market. The two main authorities, which oversee the industry, are the CRE (Commissi= on=20 de Regulation de l'Electricit,) is the official regulatory body and the=20 ministry of industry. The CRE is responsible to insure that RTE provides fo= r=20 non-discriminatory access on to the grid and will be issuing transportation= =20 tariffs. The Ministry is responsible for providing generation licenses for= =20 IPPs and for determining eligibility issues. =20 RTE is implementing new capacity allocation procedures on the UK, Italy and= =20 Spain interconnectors. On the remaining borders, capacity is currently=20 allocated on a first-come-first served basis rule, and congestion fees are= =20 levied at the margin, which favours long-term contracts and historical=20 players. In addition, there is currently some lack of transparency with=20 regards to RTE real-time data on the capacity available/used for exports an= d=20 imports. However an intra-day market is now effective for transits, imports= =20 and exports. The first come first serve allocation rule on border capacity= =20 is likely to be changed by end 2001. In addition, the CRE is likely to=20 request RTE to release additional data in the months to come. =20 New IPPs have to be authorised through auctions or through direct decision = of=20 the Ministry of Industry, the main route for authorisation. Authorised IPPs= =20 in France are limited by Decree to buying for resale to eligible customers = a=20 maximum of buy for resale to eligible customers a volume equivalent to 20% = of=20 the installed capacity, including long term contracts. Although the=20 interpretation of this law is unclear, a recent statement by M. Tuot,=20 Director General of the CRE, implies that these restrictions only apply to= =20 French authorised producers and thus not to foreign-based energy companies = or=20 other non-producing entities. Thus, these restrictions do not apply to ECTR= L,=20 as we are not registered in France. In addition, French IPPs are free to= =20 sell and export their production. Eligible customers, who are physically connected to the Grid, have to=20 contract for transmission vis-.-vis RTE (Contrat Made). Traders, such as=20 ECTRL, are not required to have such a transmission contract, as they do no= t=20 consume the power they purchase. Only a balancing responsibility contract= =20 coupled with grid access contracts (import, export, and/or transit) are=20 required by RTE. =20 A new Decree is expected to be passed by Summer 2001, setting up new=20 conditions for transmission, transits and exports under a permanent regime.= =20 Imports, which are allocated on a pro-rata basis, are free of transmission= =20 charges. =20 A network code is currently under discussion between market players and=20 RTE. =20 Market Conventions Traders: Need to Add: gate closer information and on-peak off peak hours pl= us=20 whatever relevant conventions. Other: The Gas Market A transitional regime was implemented on 10 August 2000 by direct applicati= on=20 of the EU Directive, thus establishing regulated TPA for sites whose=20 consumption is over 25 million cubic meters p.a. The eligibility threshold= =20 will be reduced to 15million cubic meters in 2003, and 5 million cubic mete= rs=20 in 2008. No gas law has been passed yet (forecasted for mid 2002), and it i= s=20 expected that the transitional regime for gas in France will last until end= =20 2002. A zonal/distance-related tariff was published on 13 July 2000 by=20 GdF-Transportation. A permanent entry/exit tariff structure is likely to be= =20 developed for 2003. Charges for imbalances are expensive and access to=20 storage is restricted. GdF-Trading, however, has published conditions for= =20 balancing services.=20 There is only one trading Hub for France located at the French/Belgian bord= er=20 (Blaregnies/TaisniSres). Due to the distance-related nature of the=20 transportation tariff, competitive TPA is limited to eligible sites which a= re=20 located not too far (less than about 250Km) from the French/Belgian border.= =20 The main imports into France are for high cal gas, and GdF has published th= e=20 conditions for high cal/low cal gas swaps. As there is not yet a gas law in France (a =01+Projet de Loi=01, was approv= ed on=20 17th May 2000) transposing the EU gas directive into domestic legislation,= =20 the Regulatory Commission has not been appointed to date, and the official= =20 regulatory body remains the Ministry of Industry. =20 Although current conditions do not facilitate full requirement supply to=20 customers from new entrants, it is already possible to optimise gas supply= =20 through import of blocs for part or full supply. ECTRL was the first new=20 entrant to supply gas at the French border, and more recently into France.= =20 ECTRL's cumulative volume of gas trades so far totals 550 million cubic=20 meters.=20 The above represents only Enron's and its affiliates views' and, accordingl= y,=20 neither Enron nor any of its affiliates is providing any advice to you in t= he=20 above information. You are not entitled to rely on any of the above=20 information and you are advised to take such other independent advice, as y= ou=20 may deem necessary in respect of the matters referred to above. =20 -----Original Message----- From: de Gaulle, Pierre =20 Sent: 25 May 2001 12:22 To: Brun, Raphael; Brod, Simon; Gaillard, Bruno; Davies, Philip Cc: Sankey, Ross Subject: RE: Background Information France/Final Draft This is the final draft as approved by EOL legal and Mark Elliott. Any ultimate comments? Pierre ---------------------- Forwarded by Pierre De Gaulle/LON/ECT on 25/05/2001= =20 12:24 --------------------------- From: Justin Boyd/Enron@EUEnronXGate on 25/05/2001 12:16 To: Mark Elliott/Enron@EUEnronXGate, Pierre de Gaulle/LON/ECT@ECT, Ian=20 Brungs/Enron@EUEnronXGate cc: =20 Subject: RE: Background Information France/Final Draft i have no further comments from an EOL perspective justin -----Original Message----- From: Elliott, Mark =20 Sent: 25 May 2001 12:05 To: de Gaulle, Pierre; Boyd, Justin; Brungs, Ian Subject: FW: Background Information France/Final Draft Pierre, Re the main text - see my comments in blue below. I have passed this on to= =20 Justin as you will see as Justin is charge of Legal for EOL and will also= =20 have to approve it. With regards to the slides, could you give me a hard= =20 copy - I can't seem to open them on my system. Kind regards Mark -----Original Message----- From: de Gaulle, Pierre =20 Sent: 22 May 2001 12:26 To: Mark Elliott/LON/ECT@ENRON; Oliver, Jennifer Subject: RE: Background Information France/Final Draft Mark, Please find herewith the background info for EOL France. It seems that you= =20 would have to approve it (Any other approval needed?). Please note that thi= s=20 draft has been seen and amended by Raphael, Simon, Philip and Bruno. Thanks Pierre =20 ---------------------- Forwarded by Pierre De Gaulle/LON/ECT on 22/05/2001= =20 12:22 --------------------------- From: Jennifer Oliver/Enron@EUEnronXGate on 22/05/2001 11:10 To: Pierre de Gaulle/LON/ECT@ECT cc: =20 Subject: RE: Background Information France/Final Draft Pierre, Has French Power Legal approved the final draft below? If not, please could= =20 they review before I submit this to the EnronOnline approval process. Also,= =20 please let me know any other approvals you have receieved so far. This will= =20 help determine who still needs to review.=20 Thanks, Jennifer=20 -----Original Message----- From: de Gaulle, Pierre =20 Sent: 21 May 2001 18:04 To: Oliver, Jennifer; Goddard, Paul Subject: Re: Background Information France/Final Draft Please find the final draft of EOL Backgoung information for France. Please= =20 also find two slides about France, which can be included in the Continental= =20 Gas Trading presentation. I would like to appear in the background as the main commercial contact=20 point, as follows: Pierre de Gaulle Director France Tel: + 44 207 783 7742 Fax: + 44 207 783 8255 Mobile: + 44 777 19 01 565 Email: Pierre.de.Gaulle@enron.com Thanks Pierre << File: SlidesFrance.ppt <<=20 =20 ---------------------- Forwarded by Pierre De Gaulle/LON/ECT on 21/05/2001= =20 18:00 --------------------------- << OLE Object: Picture (Device Independent Bitmap) <<=20 Bruno Gaillard@ENRON 21/05/2001 17:51 To: Pierre de Gaulle/LON/ECT@ECT cc: Raphael Brun/LON/ECT@ECT, Simon Brod/LON/ECT@ECT, Philip=20 Davies/LON/ECT@ECT=20 Subject: Re: Background Information France/EOL/Draft 2 << OLE Object:=20 StdOleLink <<=20 See red and strikethrough comments below ---------------------- Forwarded by Pierre De Gaulle/LON/ECT on 20/05/2001= =20 16:09 --------------------------- << OLE Object: Picture (Device Independent Bitmap) <<=20 Pierre de Gaulle 14/05/2001 19:56 Sent by: Pierre De Gaulle To: Jennifer Oliver/EU/Enron@Enron, Paul Goddard/EU/Enron@Enron cc: Philip Davies/LON/ECT@ECT, Bruno Gaillard/EU/Enron@Enron, Raphael=20 Brun/LON/ECT@ECT, Simon Brod/LON/ECT@ECT=20 Subject: Background Information France Please find a draft of the marketing background information about the Frenc= h=20 power (and gas) markets for EOL. Your comments are appreciated. Thanks Pierre Updated May 2001. 1)Background France is the second largest country in Europe with 58 million inhabitants.= =20 EdF, who was the monopolistic producer, is the largest power producer in th= e=20 world with 475TWh generated in 2000, thanks to nuclear production. The=20 historical supplier, who is at the same time the largest exporter of power = in=20 Europe (net exports reached 71TWh in 2000), is a direct emanation from the= =20 French State, who owns EdF capital. Power generation in France is mainly=20 nuclear (70%), but also hydro (20%), while conventional thermal generation= =20 represents 10%. EdF owns 92% of power generation, and 95% of distribution.= =20 A few Independent Power Producers (IPP) are also active in the market, such= =20 as Snet (6.4TWh, coal-fired), and CNR (16TWh, hydro). Other small IPPs sell= =20 their production to EdF under a regulated tariff. There has been significan= t=20 development of cogeneration projects since 1997. There is now 3,500MW of=20 installed capacity, thanks to the legal obligation for EdF to purchase powe= r=20 generated from cogeneration units at a preferable (is "preferable" the=20 correct word??) tariff. In the view of the transposition of the EU=20 Electricity Directive into French law, this purchase obligation ceased to= =20 apply for new large projects (over 12MW) from 1st Jan. 1999. More than 100 distribution companies are active through a concession regime= =20 in their local distribution area. Few, however, are of a significant size= =20 (less than a dozen have sales of over 400 GWhs), or have eligible customers= =20 in their concession area. 2) Regulatory Environment The French Electricity law was passed on 10 February 2000, implementing=20 regulated third party access (TPA) in France under a transitional regime. T= he=20 law was approved one year late, failing to meet the required EU deadline.= =20 Dozens ["Dozens" - I would replace this with "Several") of application= =20 decrees still have to be passed, including tariffs to eligible industrials.= =20 The French power market is open to competition, however. About 60 eligible= =20 industrials have so far switched totally or partly from the historical=20 supplier. Current threshold for eligibility is 16GWh (net of=20 auto-consumption) per year and per site, representing about 600 eligible=20 clients and 1,200 sites. The eligibility threshold will be reduced to 9GWh= =20 per site by direct application of the EU Directive in Feb. 2003, as the=20 French government declined a quicker opening of the power market. Eligibility of distribution companies is limited to the eligible consumptio= n=20 of customers located in their concession area. =20 A three-year framework contract ( e.g., by way of a Master Agreement with a= =20 minimum term of three years) is required for eligible customers, but=20 eligibles are free to deal for shorter maturity transactions within such a= =20 three year contractual framework. =20 New IPPs have to be authorised through auctions or through direct decision= =20 from the Ministry of Industry, which is the main route for authorisation.= =20 Authorised IPPs in France are limited by Decree to trading buy for resale t= o=20 eligible customers a volume equivalent to 20% of the installed capacity,=20 including long term contracts. Trading is currently defined as the conditio= ns=20 of power purchase for resale to eligible customers. These Trading=20 restrictions, however, do not apply to ECTRL, as we are not registered in= =20 France. IPPs are free to sell and export power. The French System Operator (RTE) was created on 1 July 2000 and is a=20 sub-division of EdF, although it is unbundled in terms of management and=20 accounting. A postage stamp tariff was implemented under the transitional= =20 regime, which varies according to the voltage used,and which is based on a= =20 matrix (Summer/Winter, Peak/OffPeak). Users have to contract transmission u= p=20 to the maximum capacity that they will use. RTE purchases excess capacity= =20 available through transmission contracts at fixed prices, which represents= =20 about half of the market price. Imbalances are settled under a published=20 tariff, which introduces high charges for imbalances beyond a 10% tolerance= =20 level and 5MW. Although the criteria for eligibility is per site, and=20 eligible customers have to contract transmission for each site, RTE has=20 created programme responsible contracts (contrats de Responsable=20 d'Equilibre), which allow the aggregation of imbalance charges for differen= t=20 eligible sites within an equilibrium perimeter defined with RTE. Eligible customers, who are physically connected to the Grid, have to=20 contract for transmission vis-.-vis RTE (Contrat Made). Traders, such as=20 ECTRL, are not required to have such a transmission contract, as they do no= t=20 consume the power they purchase. Only a programme responsible contract=20 coupled with grid access contracts (import, export, and/or transit) are=20 required by RTE. =20 A new Decree is expected to be passed by Summer 2001, setting up new=20 conditions for transmission, transits and exports under a permanent regime.= =20 It is likely that this new tariff will implement a 1/3 injection-2/3 delive= ry=20 calculation factor. Imports, which are allocated on a pro-rata basis, are= =20 free of transmission charges. =20 Programme responsible contracts have established the basis of trading in=20 France through the exchange of blocs from one perimeter to another. Enron= =20 Capital & Trade Resources Limited ("ECTRL") is programme responsible in=20 France. Cross border capacity is currently allocated on a first-come-first= =20 served basis rule by RTE, and congestion fees are levied at the margin, whi= ch=20 favours long term contracts and does not give equal treatment to all player= s.=20 In addition, there is currently some lack of transparency with regards to R= TE=20 real-time data on the capacity available/used for exports and imports. This= =20 allocation rule is likely to change by end 2001. In addition, the CRE is=20 likely to request RTE to release additional data in the months to come. = =20 The CRE (Commission de Regulation de l'Electricite) is the offical regulato= ry=20 body, which mainly covers TPA and tariff issues, while IPP licenses and=20 eligibility issues are covered by the Ministry of Industry. =20 =20 3) Business Opportunity Although we are currently under a transitional regime in France, the abilit= y=20 to trade power already exists. Optimisation can be found through real-time= =20 arbitrage between the flexibility of the industrial process, market prices= =20 and optional structures. The establishment of programme responsible contrac= ts=20 has created the basic conditions for an effective power trading market in= =20 France. ECTRL closed the first physical power transaction in France early= =20 2000, and was the very first new entrant to trade power (buy/sell) in Franc= e=20 late 2000. =20 An intraday market is now effective for transits, imports and exports, and = is=20 expected to soon be extended to exchange of blocs in France.=20 Liquidity has been dramatically increasing (although the market remains=20 dominated by the historical player) thanks to RTE capacity auctions for=20 (auction has not been implemented on Spanish side yet) [QUERY: do we need= =20 this bit in brackets?? What does it add?? Can't we just delete it?? Or i= s=20 it a note and someone has to write some better text here?? It just does no= t=20 read correctly in English owing to its place in the sentence at present] UK= ,=20 Italy and Spain interconnectors, RTE tenders for HV Grid losses, industrial= s=20 switching, and new players coming into the market. In addition, the Europea= n=20 Commission has determined that EdF will auction 6,000MW of virtual capacity= =20 through VPP and PPA auctions in September 2001, representing about 30% of t= he=20 market for French eligible industrials This will further contribute to=20 increase liquidity.=20 A network code is currently under discussion between market players and=20 RTE. =20 4) Future Development=20 It is forecasted that both balancing market and spot exchange market will b= e=20 implemented by end 2001. Players in the balancing market will propose put a= nd=20 call options, which will be exercised by RTE according to its own portfolio= =20 of contacts (producer,consumer), thus providing RTE with physical balancing= =20 capacity. The balancing market will also show referenced market prices for= =20 balancing services.=20 The Some of the spot market volume is expected to be run by ParisBourse.=20 However, due to the dominant position of EdF, the limited number of active= =20 IPPs, existing restrictions for trading for authorised producers in France,= =20 and the lack of transparency with regard to current rules for allocation of= =20 cross-border capacity and attribution of congestion costs, we believe that= =20 the conditions for the creation of an effective spot power market in France= =20 are not yet fully met. ECTRL has actively been lobbying in order to have fa= ir=20 and transparent rules implemented for every player in the market and has=20 actively contributed for a spot market to take place. However, thanks to an increasing number of players in France for trading,= =20 imports, exports and transit, we are confident that the French power market= =20 will develop rapidly. =20 5) The Gas Market Situation A transitional regime was implemented on 10 August 2000 by direct applicati= on=20 of the EU Directive, thus establishing regulated TPA for sites whose=20 consumption is over 25 million cubic meters p.a. The eligibility threshold= =20 will be reduced to 15million cubic meters in 2003, and 5 million cubic mete= rs=20 in 2008. No gas law has been passed yet (forecasted mid 2002), and its is= =20 expected that the transitional regime for gas in France will last until end= =20 2002. A zonal/distance-related tariff was disclosed published on 13 July 20= 00=20 by GdF-Transportation. A permanent entry/exit tariff structure is likely to= =20 be developed for 2003. Charges for imbalances are expensive, and access t= o=20 storage is restricted. GdF-Trading, however, has published conditions for= =20 balancing services.=20 There is only one trading Hub for France located at the French/Belgian bord= er=20 (Blaregnies/TaisniSres). Due to the distance-related nature of the=20 transportation tariff, competitive TPA is limited to eligible sites which a= re=20 located not too far (less than about 250Km) from the French/Belgian border.= =20 The main imports into France are for high cal gas, and GdF has published th= e=20 conditions for high cal/low cal gas swaps. As there is not yet a [new??] gas law in France ( a Projet de Loi was=20 approved on 17th May 2000) transposing the EU Gas Directive into domestic= =20 legislation, the Regulatory Commission has not been appointed to-date , and= =20 the official regulatory body remains the Ministry of Industry. =20 Although current conditions do not facilitate full requirement supply to=20 customers from new entrants, it is already possible to optimise gas supply= =20 through import of blocs for part or full supply. ECTRL was the first new=20 entrant to supply gas at the French border, and more recently into France.= =20 ECTRL's cumulative volume of gas trades so far totals 550 million cubic=20 meters.=20 The above represents only Enron's and its affiliates views' and, accordingl= y,=20 neither Enron nor any of its affiliates is providing any advice to you in t= he=20 above information. You are not entitled to rely on any of the above=20 information and you are advised to take such other independent advice as yo= u=20 may deem necessary in respect of the matters referred to above. =20 ---------------------- Forwarded by Richard Shapiro/NA/Enron on 06/08/2001= =20 10:05 PM --------------------------- From: Bruno Gaillard on 06/01/2001 07:04 PM GDT To: Richard Shapiro/NA/Enron@Enron cc: =20 Subject: Gas situation in France ----- Forwarded by Bruno Gaillard/EU/Enron on 01/06/2001 19:03 ----- =09Bruno Gaillard =0924/05/2001 18:12 =09=09=20 =09=09 To: Philip Davies/Enron@EUEnronXGate =09=09 cc: Didier Magne/Enron@EUEnronXGate =09=09 Subject: Gas situation in France Philip Attached the relevant sections of a paper produced by EFET (largely by us) = on=20 TPA in the French gas market and Enron comments to the EU on TPA issues. No= te=20 that these papers were produced in December of 2000 and mid-Feb 2001=20 respectively. Notable changes since then include. A relatively competitively priced conversion service (H-Cal to L-Cal gas) a= t=20 TaiseniSres has been but in place=20 The balancing regime has been improved and penalties are now indexed to=20 Zeebrugge (x 1.5 or x -0.5) Access conditions to LNG have been published Flexibility services are offered by GdF- Supply. The terms and conditions u= p=20 to now had been onerous. Recent talks between Didier and a customer suggest= =20 that they have been wildly improved but this still needs to analysed by us. Transit tariffs have been published but is also restricted to a year-long.= =20 The regulator is seriously considering changing the tariff structure from a= =20 distance related structure to a entry/exit type structure. The first hearing on the law (directive transposition) at the parliament ha= s=20 been delayed from spring 2001 to summer 2002. Regulated tariffs will not=20 likely be put in place until 2003. Let me know if you need more information.=20 Bruno ---------------------- Forwarded by Richard Shapiro/NA/Enron on 06/08/2001= =20 10:06 PM --------------------------- From: Bruno Gaillard/Enron@EUEnronXGate on 06/01/2001 07:14 PM GDT To: Richard Shapiro/NA/Enron@Enron cc: =20 Subject: EdF capacity auctions Information on capacity release program (VPP) in France Letter below to the consultants of EDF Decision on Merger imposing capacity release Trustee mandate that we proposed to the EU =20 Initial VPP proposal by EDF -----Original Message----- From: Sankey, Ross =20 Sent: 01 June 2001 09:51 To: de Gaulle, Pierre Cc: Gaillard, Bruno; Philip Davies/LON/ECT@ENRON; Brun, Raphael; Brod, Simo= n;=20 Styles, Peter; Dindarova, Nailia; Shaw, Eric; Elliott, Mark Subject: RE: EdF capacity auctions All, I would suggest we need to do the following :-=20 ? Register for the auction and receipt of the IM asap. Bruno could you=20 please discuss with Mark and put together our registration document. I=20 assume that ECTRL meets the criteria of a trader "registered" in an EU memb= er=20 state? Does not appear to be any need to deal with credit support or other= =20 regulatory "qualifiers" such as balancing agreements as yet. Mark - agree?= =20 Bruno - could you please take care of sending this registration letter (agr= ee=20 with Pierre who should act as principal contact). ? Establish once and for all the role of Trustee and CRE in the process of= =20 approving capacity release phasing, auction process for each phase and=20 product specifications AND understand how the "consultation" process will= =20 work once we have the IM. Hence need to discuss with MTF, then Trustee and= =20 CRE asap ie in June if possible. Preferably before we meet again with=20 PWC/Roth.... In addition to Pierre's comments, the PIM also states that strike prices at= =20 least are subject to Trustee review but a number of areas need to be=20 questioned. ? Capacity Release Phasing. PIM confirms the 5 year period of the remdey b= ut=20 also says a review can be requested after 3 years. Bruno - you need to=20 review the remedy doc, but I do not see how a 2 year phasing of capacity=20 release complies with the remedy (at least in spirit). We would suggest=20 there is no impediment to offering the FULL remedy in a single phase. If= =20 theere is insufficient demand they can always have a fall back position to= =20 release unsold capacity on a 6 monthly or annual basis through the 5 year= =20 period. The current proposal is no more than EdF trying to minimise capaci= ty=20 release and/or extract max value (can't blame them for trying but it is not= =20 what we want or what remedy requires). EdF's only real argument is that=20 phasing will allow more new suppliers to enter at a later date as eligiblit= y=20 threshold drops in France. However, since eligible demand already exceeds= =20 total capacity release this would limit development of competition to=20 existing eligibles. As a minimum the release programme for all capacity=20 should be clearly defined up front; not at the whim of EdF. Peter - though= ts=20 on this and how, in context of remedy, we can argue for accelerated single= =20 phase auction (with possible reauctioning of unsold capacity over 5 years)? ? Auction Process : qualifying criteria likely to be more defined in IM; bu= t=20 no obvious problems here. I am less sure about nature of auction process. = =20 We obviously need to think it through more, but why not just have a simple= =20 process based on single sealed bids (or an electronic bid process). The us= e=20 of price "clock" controlled by the auctioneer may allow a reserve price to = be=20 set which is clearly not the intent of the remedy - this should be set at= =20 zero for all product groups not subjectively "to ensure excess demand" but= =20 only for certain groups! ? Product Specs : need to understand what if anything can be changed here. = =20 Strikes seem to be subject to Trustee approval, but we need to understand= =20 what else can be influenced eg within day flex. Since we have already=20 covered this in previous submissions to MTF, EdF etc this should be easy to= =20 identify as we go forward. Any comments? Ross -----Original Message----- From: de Gaulle, Pierre =20 Sent: 01 June 2001 09:00 To: Sankey, Ross Cc: Gaillard, Bruno; Philip Davies/LON/ECT@ENRON; Brun, Raphael; Brod, Simo= n;=20 Styles, Peter; Dindarova, Nailia Subject: RE: EdF capacity auctions & other EU news Point 1.5: This info is of a preliminary nature and is subject to change. I= n=20 addition, it is mentioned in point 6 that registered companies for the=20 auction will have the opportunity to ask questions and raise issues during= =20 conferences, which will be then considered by EdF. Specifications of the auction will be finalised by end August. This seems t= o=20 leave some room for a complete feedback from registered companies. Let's=20 discuss the content of the PIM. I suggest to arrange anothe meeting with PWC/Rothschild in the next few wee= ks=20 (week 11-16 June).=20 What about a potential meeting with the Trustee about the PIM? Pierre =20 From: Ross Sankey/Enron@EUEnronXGate on 31/05/2001 19:31 To: Bruno Gaillard/Enron@EUEnronXGate, Philip Davies/LON/ECT@ENRON, Pierre = de=20 Gaulle/LON/ECT@ECT, Raphael Brun/LON/ECT@ECT, Simon Brod/LON/ECT@ECT cc: Peter Styles/LON/ECT@ECT, Nailia Dindarova/LON/ECT@ECT=20 Subject: RE: EdF capacity auctions & other EU news Bruno, Quel surprise. Should make your follow up with the MTF interesting as to t= he=20 role of the Trustee. One point to note for both MTF and Albers at COMP - the lack of within day= =20 flexibility is hardly in keeping with the intention of supporting developme= nt=20 of retail supply to end users with fluctuating demand. Suppliers will thus= =20 be at the mercy of EdF in the balancing market. In addition, how on earth can they be allowed to take 2 years to complete t= he=20 process? How does that fit with merger remedy? Somewhat ironic that they have the document in English! Lets discuss what if anyhting we can do after you have spoken with MTF. Regards, Ross -----Original Message----- From: Gaillard, Bruno =20 Sent: 31 May 2001 19:03 To: Philip Davies/LON/ECT@ENRON; Sankey, Ross; de Gaulle, Pierre; Brun,=20 Raphael; Brod, Simon Cc: Styles, Peter; Dindarova, Nailia Subject: RE: EdF capacity auctions & other EU news Obviously a done deal - interestingly the Trustee is not mentioned. EDF has= =20 the capacity offering on its web page=20 http://www.edf.fr/htm/en/enchere/enchere and has a detailed document in=20 English but not in French yet. They also has EFET under industry links as= =20 well as the CRE, DIGEC.=20 Attached is EDF's presentation of the product. After a quick look, it seems= =20 that flexibility is not a option (nomination at noon, and price has not=20 changed) << File: VPP MIP.pdf <<=20 Bruno 31/05/01 UK: EDF ISSUES DETAILS OF ITS FIRST CAPACITY AUCTION. LONDON, May 31 (Reuters) - French utility Electricite de France (EdF)=20 announced on Thursday details of its first auction to sell electricity=20 production capacity to competitors. EdF was required by the EU Commission i= n=20 February to give access to some of its generation capacity as a condition f= or=20 EU approval of its purchase of a 25 percent stake in German utility EnBW. In the next two years, EdF will auction a total of 6,000 megawatts which=20 include 1,000 MW of peak capacity sold at a price of 26 euros per megawatt= =20 hour (MWh) and 4,000 MW of baseload at a price of eight euros/MWh. In addition, 1,000 MW of cogeneration production capacity will be made=20 available. Production from cogeneration plants is bought by EdF from smalle= r=20 producers under long-term contracts. "With such contracts, electricity suppliers and traders will be able to hav= e=20 electricity without the technical and operational risks of running a power= =20 plant," said EdF in a statement. The price for cogeneration capacity will be made public a few weeks before= =20 the auction as it depends on gas price movements, EdF said. The auction will take place in several tranches, the first one starting in= =20 September, when 200 MW of peak capacity will be auctioned, 800 MW of baselo= ad=20 and 190 MW of cogeneration. The whole 6,000 MW should be sold by October 2003. EdF, which has a 94 percent share of the French generation market, has a=20 total installed capacity of 103,500 MW. -----Original Message----- From: Dindarova, Nailia =20 Sent: 31 May 2001 17:20 To: Gaillard, Bruno; Philip Davies/LON/ECT@ENRON Subject: EdF capacity auctions & other EU news FYI see attached ---------------------- Forwarded by Nailia Dindarova/LON/ECT on 31/05/2001= =20 17:07 --------------------------- << OLE Object: Picture (Device Independent Bitmap) <<=20 "Sandra James" <Sandra_James@electricity.org.uk< on 31/05/2001 17:11:51 To: <david.love@british-energy.com<, <rob.plaskitt@british-energy.com<,=20 <shercock@compuserve.com<, <jgreen3@edisonmission.com<, "Gwyn Dolben"=20 <Gwyn_Dolben@electricity.org.uk<, <KHanks@enron.com<,=20 <Nailia.Dindarova@enron.com<, <Peter.Styles@enron.com<,=20 <mwedg90@entergy.com<, <alison.cole@innogy.com<, <DAVID.TOLLEY@innogy.com<,= =20 <peter.heffer@magnox.co.uk<, <ALAN.CLARK@natpower.com<,=20 <David.Burnett@nie.co.uk<, <Gordon.Dunlop@nie.co.uk<, <Chris.Price@pgen.com= <,=20 <david.densley@scottish-southern.co.uk<, <shamblyn@seeboard.com<,=20 <Brian.Samuel@txu-europe.com<, <Phil.Hardy@txu-europe.com<,=20 <andy.papageorgi@uk.ngrid.com<, <christine.brown@uk.ngrid.com<,=20 <judith.ward@uk.ngrid.com<, <louise.petchell@uk.ngrid.com<,=20 <michael.metcalfe@uk.ngrid.com<, <James.Sheward@uuplc.co.uk<,=20 <Arthur.Probert@yeg.co.uk<, <gail.antrobus@yeg.co.uk<,=20 <Gail.Silcock@yeg.co.uk<, <joanne.bridge@yeg.co.uk< cc: =20 Subject: EdF capacity auctions & other EU news Dear All Please see attached news items from this afternoon, including details of=20 EdF's sale of capacity. Regards Sandra ***************************************************************** This e-mail is confidential. It is intended only for the person named. Unless you are that person, or authorised to receive this e-mail, you must not copy or use it or disclose it to anyone else. If you have received this e-mail in error, please contact the sender. Thank you for your cooperation. Electricity Association Services Limited, 30 Millbank, London SW1P 4RD (Reg. in England No: 2366837). ***************************************************************** - eunews 31may pm.doc << File: eunews 31may pm.doc <<=20
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