CROSS-BORDER POWER

[BIZ/INFRA: Brussels, August 18]
RTE (1) and Elia (2), the French and Belgian electricity
transmission system operators respectively, are implementing a joint provision on allocating capacity at the French-Belgian border for September 2005. With an increase of 350 MW, total capacity available to the market for September will be 500 MW.

In a press release published on July 7 (see www.tennet.nl), TenneT, the Dutch system operator, announced its decision, effective September 1 2005, to stop awarding priority for the allocation of capacity at all Dutch borders to contracts concluded between EDF and SEP prior to the liberalization of the electricity market. TenneT made this capacity available to the market again.
Importing energy from France to the Netherlands requires a contract governing transit via Belgium by means of the priority reservation of 350 MW of capacity at the French-Belgian border when determining monthly capacity. As a result of TenneT's decision, RTE and Elia, the French and Belgian system operators respectively, have noted the de facto non-implementation of the priority status awarded to the contract in question.

Given this, and in order to ensure that there is no unusable reserved capacity, the corresponding capacity will be allocated in accordance with the prevailing allocation mechanism. The use of these mechanisms will lead, for September 2005, to a 350 MW increase, which will be allocated to monthly blocks on the French-Belgian border. The total capacity made available to the market for September will therefore be 500 MW.

This technical provision, which is valid for September 2005 only and which was taken jointly by RTE and Elia, in no way prejudices the subsequent introduction of other allocation methods, pursuant to current consultation with the regulatory authorities in both countries.
(1) RTE, the French electricity transmission system operator, was founded on 1 July 2000. A public utility, its mission is to operate, maintain and develop the high-voltage and very-high-voltage network. It ensures the correct operation and security of the electricity
transmission system.
(2) Elia operates the high-voltage and very-high-voltage network in Belgium as well as the network from 380.000 to 30.000 volt.

http://www.rte-france.com